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I have encountered a problem and i dont know the answer. I hope you can help me.
A company orders 5000 units when inventory falls at 1500. demand for next year is 31000 units. Lead time is 2 weeks. What is the average inventory? What is buffer safety inventory? Assume 50 weeks year.I don’t know to whom you are addressing this question! If it is to me then you should ask in the Ask the Tutor Forum. This forum is for students to help each other.
Have you watched the revision lectures for Paper F2 (because this is revision of Paper F2 and is dealt with in the revision lectures for Paper F2 which are linked from the main F2 page on this website)?
i have watched the revision course indicated and i found the answer:
Average usage 31000/50=620
buffer safety inv = 1500-(620*2)=260
average inv =260+5000/2=2760thank you!
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