How do you calculate the following inventory levels?

How do you calculate the following inventory levels?


a.) Re-order level = Maximum Lead Time x Minimum Lead Time

b.) Maximum level = Reorder Level + Reorder Quantity – (Minimum Usage x Minimum Lead Time)

c.) Minimum level = Reorder Level – (Normal Usage x Normal Lead Time)

d.) Danger level = Maximum Level x Lead time for Emergency purchases
What is ABC Analysis? Explain. What are its advantages?
ABC analysis means ‘Always Better Control’ is a technique which classifies the various items of inventory…
Explain bills of materials
Bill of materials - is the list of all materials including all the details and quantity as required for a job or production process.
Explain perpetual inventory system.
Perpetual inventory system - is a system under which continuous stocking takes place. …
Post your comment

Related Content

Follow us

▲