Accounting for Materials – Safety InventoryForums › ACCA Forums › ACCA MA Management Accounting Forums › Accounting for Materials – Safety InventoryThis topic has 1 reply, 2 voices, and was last updated 9 years ago by Farzana sultana.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts February 5, 2015 at 8:54 am #225311 VickiMemberTopics: 20Replies: 33☆☆Hi,I am struggling with which formula to use to answer this question, also what is meant by ‘safety inventory’? please can you help?“For a particular component, the re-order quantity is 6000 units and the average inventory holding is 3,400 units.What is the level of safety inventory (in whole units)? February 10, 2015 at 1:03 am #227479 Farzana sultanaMemberTopics: 19Replies: 43☆☆The answer should b 400.the formula is Average inventory=(Q/2+safety inventory) If u go through with this u can hv ur answer.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In