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(Querist)
24 November 2008 While calculating Min. stock we need average rate of consumption n that why we take Average of units (in formula) to b produced multiply by usage per unit of product?Any specifis reason?
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KAAPIL

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KAAPIL (Expert)
25 January 2009 Average units : This is because parameters are not clear. Simple. If one has fault in the meter Electricity Authorities will take average of last three months and thus it is expected to be near that.
Industry also follows the same.
Exceptions
__________
Seasonal.
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