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?6. Hora plc holds inventories of a particular type of motor car tyre, which is ordered in batches of 1,200 units. The supply lead times and usage rates for the tyres are:

Maximum Most likely Minimum Supply lead times 25 days 15 days 8 days Daily usage 30 units 20 units 12 units The business wishes to avoid the risk of running out of inventories.

At what minimum level of inventories should Hora plc place a new order, such that it can guarantee not to run out?

What is the size of the buffer inventories based on the most likely lead times and usages?

If Hora plc were to place an order based on the maximum lead time and usage, but only the minimum lead time and usage were actually to occur, what would be the level of inventories immediately following the delivery of the new inventories? What does this inventories figure represent?