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Minimum level(costing)

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 September 2013 The formula for minimum level is
Reorder level-(average lead time * average usage rate)
PLease explain the logic!
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
07 September 2013 Minimum level which stock was maintained always that level. it will be related to reorder level which required average consumption need to deducted
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