Average inventory levelForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Average inventory levelThis topic has 0 replies, 1 voice, and was last updated 3 years ago by safwanstark99.Viewing 1 post (of 1 total)AuthorPosts July 29, 2021 at 11:55 am #629594 safwanstark99ParticipantTopics: 11Replies: 6☆Question 157 from kaplan management accounting exam kit 2020:A large store selling office furniture stocks a popular chair for which the following information is available:Annual demand: 4,000 chairs Maximum inventory: 75 chairs Minimum inventory: 20 chairs Lead time: 5 days Reorder quantity: 100 chairsAnswer: Average inventory is EOQ/2 + minimum inventory = 70 chairsI am confused as i thought calculation of average inventory already takes minimum inventory into consideration, an explanation would be helpful.AuthorPostsViewing 1 post (of 1 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In