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Following are the steps in procurement of material:...Following particulars appear in the purchase requisition..
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Re-order level, Maximum level,Minimum level ,Danger level…
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ABC analysis means ‘Always Better Control’ is a technique which classifies the various items of inventory…
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Bill of materials - is the list of all materials including all the details and quantity as required for a job or production process.
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Perpetual inventory system - is a system under which continuous stocking takes place. …
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Due to the following consequences over stocking should be avoided:…
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Production process cannot be operated efficiently, resulting delivery schedules..
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Single Tender : When only one source of supply is available then single tender is addressed to the selected supplier….
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There are two categories of material discrepancies:...First category includes-..Second category includes –
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Bin Card is a quantitative record of the individual item of its receipts, issues and closing balance whereas
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The following can be the reasons for bin card and stores ledger for not getting reconciled:..
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Valuation of receipts is the price billed in the invoices by the supplier. Following points should be kept in mind for this purpose…
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Valuation of issues is a complex process because the material may be issued out of various lots which might have been…
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Average Price Method - is the method by which the value of total assets or expenses...Weighted Average Method - is the method of calculation in which the weighted average of both the lot sizes…
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Economic Order Quantity, Fixation of Inventory Levels, Maximum Level..
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Economic Order Quantity (EOQ) is the quantity which is fixed in such a way that the variable costs for managing the inventory can be minimized…
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Fixation of inventory levels : Fixation of inventory levels facilitates easy maintenance and control of various materials in a proper way…
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