A wholesaler has 8,450 units outstanding for Part X100 on existing customer’s orders; there are 3,925 units inventory and the calculated free inventory is 5,525 units. How many units does the wholesaler have on order with the supplier?
If the free inventory is 5.525, then since they have 8,450 units still to be despatched they must be expecting a total of 13,975 to be available. Of these 3,925 are already in inventory and so the difference must be the amount on order with the supplies.