Assume the same facts as in Activity 12.4, except that the business wishes to maintain buffer inventories

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Assume the same facts as in Activity 12.4, except that the business wishes to maintain buffer inventories of 300 units. At what level should the business reorder?

Data from Activity 12.4

An electrical wholesaler sells a particular type of light switch. The annual demand for the light switch is 10,400 units and the lead time for orders is four weeks. Demand for the light switch is even throughout the year. At what level of inventories of the light switch should the business reorder, assuming that it is confident of the information given above?

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