Costing
This query is : Resolved
Guest
Guest
(Querist)
13 March 2012
What is stock out?
14 March 2012
It is the situation where sale order for the stock is more than the stock in hand to fulfill it.
Guest
Guest
(Querist)
14 March 2012
how to calculate stock out cost and safety stock levels?
14 March 2012
stock out cost= No.of days out of stock * Avg no.of units can be sold per day * Profit per Unit
Safety Stock = (Annual Demand / 365)*(Maximum lead time - Average lead time)
Safety Stock = (Annual Demand / 365)*(Maximum lead time - Average lead time)
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