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BPP Practice and Revision Kit. Question 62 PKA Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › BPP Practice and Revision Kit. Question 62 PKA Co

  • This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
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  • June 29, 2016 at 10:05 am #324378
    acca9
    Member
    • Topics: 68
    • Replies: 50
    • ☆☆

    Could you explain why the min inventory level is not 35000?

    June 29, 2016 at 3:29 pm #324394
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51529
    • ☆☆☆☆☆

    Because although they place an order when have 35,000 units left, they then have to wait two weeks to receive the order. So during those two weeks they will have been selling units and so when the order arrives the inventory will have fallen to a lower level.

    June 29, 2016 at 3:38 pm #324399
    acca9
    Member
    • Topics: 68
    • Replies: 50
    • ☆☆

    I see…… that makes perfect sense!
    Thanks!

    June 29, 2016 at 3:39 pm #324401
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51529
    • ☆☆☆☆☆

    You are welcome 🙂

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