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