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EOQ, MCQ 11, Kaplan

Former userFormer user10y ago

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John MoffatJohn MoffatTutor10y ago#1
Buffer inventory is when you hold more units than actually needed, throughout the year. Therefore the maximum inventory will be 110,000 (100,000 + 10,000) and the minimum inventory will be 10,000. The average inventory will be (110,000 + 10,000) / 2 = 60,000
John MoffatJohn MoffatTutor10y ago#2
You are welcome :-)
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