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
CAclubindia
