cost accounting

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krishna chaitanya (Querist)
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25 August 2010 respected members

1)what is the difference reorder level and minimum level?
2)is economic order quantity and reorder level are same in the context of menining?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 August 2010 Reorder level is the level in which the materials are need to be order

Minimum level is the minimum stock always there in hand, this point is the mid point between the Danger level and reorder level

EOQ and ROL both are different meaning, EOQ level in which level the purchase cost will be optimum that lelvel, but EOQ may or may not be a reorder level

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