Assume the same facts as in Activity 10.4. However, we are also told that the business maintains

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Assume the same facts as in Activity 10.4. However, we are also told that the business maintains buffer inventories of 300 units. At what level should the business reorder?

Data from Activity 10.4

An electrical wholesaler sells a particular type of light switch. The annual demand for the light switch is 10,400 units and the lead time for orders is four weeks. Demand for the light switch is steady throughout the year. At what level of inventories of the light switch should the business reorder, assuming that it is confident of the information given above?

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