Average daily sale of a product is 100 units, every friday a order is placed and they receive the shipment on Monday morning. The policy is that, when the week starts they should have three weeks worth of inventory. How to calculate the average inventory in days|||If they are expected to have 3 weeks of inventory, that would be 21 days (assuming they are a 7-days per week business).
So Monday morning, they need to have 21x100 = 2100 units on hand. There are no details about how many units they currently have on hand from inventory ordered the prior Friday. This is a very poorly worded question.
For instance if they started with zero inventory on Friday (so they couldn't sell anything on Saturday and Sunday), then placed an order for 2100 units that they receive on Monday, then they sold 100 units each on Monday through Friday, they'd end the week with 2100-500=1600 units. In order to still have 3 weeks supply on hand, they'd need to order an additional 500 units.
But then the next week, they'd have inventory available to sell on Saturday and Sunday, and then again on Monday through Friday, so that week's Friday they'd have to order an additional 700 units to replenish what was sold all week.
Without knowing their starting inventory and if they were open for business on the weekends, it is not possible to answer this question appropriately.
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