Important Material Formlas

Inventory control system

LEVELS OF INVENYORY

1. MAXIMUM STOCK LEVEL:

    = REORDER QUANTITY + REORDER LEVEL - (MINIMUM CONSUMPTION * MINIMUM LEAD TIME)

2. MINIMUM STOCK LEVEL :

  = REORDER LEVEL - (AVEREGE CONSUMPTION * AVERAGE LEAD TIME.)

3. AVERAGE STOCL LEVEL ;

   = (MAXIMUM STOCK LEVEL + MINIMUM STOCK LEVEL) / 2

    OR 

  = MINIMUM STOCLK LEVEL +{ (E.O.Q)/2 }

4. REORDER LEVEL :

  =  MAXIMUM CONSUMPTION * MAXIMUM LEAD TIME + BUFFER STOCK

  OR

  = {(E.O.Q)/2} + BUFFER STOCK

DANGER LEVEL :

    AVERAGE CONSUMPTON * EMERGEND PURCHASE TIME.

E.O.Q/ R.O.Q

  = SQR.((2*AC*OC)/2)

WHRERE

 AC = ANNUAL CONSUMPTION

   OC ORDERING COST

   CC CARRYING COST PER UNIT PER ANNUM.

FOR FURTEHT WAIT FOR TIME