Lesson Plan

Resources → Subject Notes → Business → Notes
Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: buffer inventory, re-order level and lead time
Learning Objective/s:
  • Describe the purpose of buffer (safety) inventory, lead time and re‑order level in inventory management.
  • Explain how demand and supply variability affect each of these concepts.
  • Calculate buffer inventory and re‑order level using the standard formulas.
  • Analyse how changes in lead time or demand forecasts alter required stock levels.
  • Apply the calculations to a realistic business scenario and interpret the results.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handout with key formulas and definitions
  • Calculator for each student
  • Worksheet containing practice calculations
  • Demo of simple inventory‑management software (optional)
 Introduction:
Begin with a short video clip showing a store running out of a popular product and the impact on sales. Ask students to recall how they have used demand forecasts in previous lessons. State that by the end of the lesson they will be able to compute safety stock, lead time and re‑order points and justify their importance for avoiding stock‑outs.
Lesson Structure:
  1. Do‑Now (5’): Quick quiz on basic inventory terms from earlier unit.
  2. Mini‑lecture (10’): Define buffer inventory, lead time, re‑order level; illustrate with the flowchart diagram.
  3. Guided practice (15’): Walk through the example calculation (450 units buffer, 1,050 units re‑order) on the board, checking for understanding.
  4. Independent activity (15’): Students complete the worksheet problem (average 80 units/day, max 110, lead time 4‑6 days) and compare answers.
  5. Check‑for‑understanding (5’): Use exit tickets – “Write one reason why reducing lead time can lower buffer stock.”
Conclusion:
Summarise the three key formulas and highlight how accurate forecasts and supplier reliability influence inventory decisions. Collect exit tickets and address any misconceptions. Assign homework: students must calculate buffer inventory and re‑order level for a second set of data provided on the handout and prepare a brief paragraph on how changing one variable would affect the result.