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buffer inventory

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › buffer inventory

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • January 27, 2019 at 6:33 pm #503429
    usama44
    Participant
    • Topics: 13
    • Replies: 10
    • ☆

    In f2 we have gone through the maximum and minimum lead time and to calculate buffer inventory we subtracted average lead time from maximum lead time if I am remembering it right ,Is this relevant in this paper as you have discussed buffer inventory and whatever the buffer inventory is we have to add it into the eoq and divide it by 2 or we first we calculate eoq/2 and then add the buffer inventory

    January 28, 2019 at 7:25 am #503457
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    We calculate EOQ/2 and then add the buffer inventory. (Although this is unlikely to be relevant in Paper FM).

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