A retailer uses the weeks' supply method of inventory-level planning.Average weekly sales during a 4-month period are forecast to be $7,500;the retailer wants to stock 9 weeks of merchandise.What should the planned average inventory level be during this period?

Question

Quizplus · Accepted Answer

The planned average inventory level is calculated by multiplying the average weekly sales by the number of weeks of merchandise the retailer wants to stock: $7,500 * 9 = $67,500.

A Retailer Uses the Weeks' Supply Method of Inventory-Level Planning