A fast food hamburger restaurant uses 3,500 lbs. of hamburger each week. The manager of the restaurant wants to ensure that the meat is always fresh i. e. the meat should be no more than two days old on average when used. How much hamburger should be kept in the refrigerator as inventory

The peak inventory will be 2 sales days of hamburguers, which is equivalent to 7,000 lbs. As they are consumed in 2 days, the average inventory is 3,500 lbs.

Step-by-step explanation:

If the meat should be no more than two days old on average when used, the stock of hamburguer in the refrigerator has to be at most the equivalent to 2 day of sales.

The "2 days old" represents the inventory turnover.

If we use all the hamburguers in the refrigerator and refill inmediatly, the average inventory is:

The peak inventory will be 2 sales days of hamburguers, which is equivalent to 7,000 lbs. As they are consumed in 2 days, the average inventory is 3,500 lbs.

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step-by-step explanation:

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