Formulae
☑ Total Cost = Buying Cost + Carrying Cost + Ordering Cost
☑ EOQ = `\sqrt{\frac{2AO}C}`
☑ Reorder Level (ROL) =
⟶ Maximum Consumption `\times` Maximum Lead Time
⟶ Minimum Level + Consumption during Lead Time (i.e. Normal Consumption `\times` Normal Lead Time)
⟶ Safety Stock + Consumption during Lead Time (i.e. Normal Consumption `\times` Normal Lead Time)
☑ Consumption during Lead Time = Average Consumption `\times` Average Lead Time
☑ Maximum Level =
⟶ ROL + ROQ - (Min. Consumption `\times` Min. Lead Time)
⟶ EOQ/ROQ + Safety Stock
☑ Minimum Level = ROL - (Normal Consumption`\times`Normal Lead Time)
☑ Danger Level =
⟶ Normal Consumption`\times`Max. Lead Time for Emergency Purchases
⟶ Min. Consumption`\times`Emergency Delivery Time
☑ Average Stock Level =
⟶ (Maximum Level + Minimum Level) / 2
⟶ Min. Level + (1`\div`2 `\times` EOQ)
☑ Safety Stock = Annual Demand`\div`365 `\times` No. of days
☑ Reserve Inventory or Buffer Stock = (Max. daily usage - Avg. daily usage) `\times` Lead Time
☑ Inventory Turnover Ratio = Raw Material Consumed during the Period `\div` Average Stock during the Period
☑ Inventory Turnover Period = 365 `\div` Inventory Turnover Ratio
☑ Material Issue Price
⟶ Simple Average Price Method = Total of Unit price of each purchase `\div` Total No. of purchases
⟶ Weighted Average Price Method = Total Cost of materials in stock `\div` Total Quantity of Materials
☑ Average Inventory = Total Carrying Cost `\div` Carrying Cost Per Unit
☑ Total Carrying Cost = Carrying Cost Per Unit `\times` EOQ `\div` 2
7 Comments
This comment has been removed by the author.
ReplyDeletethank you for sharing such valuable information
ReplyDeletecomptable syndic benevole
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteTo reduce the inflation rate, the Central Bank of a country has to pursue contractionary Monetary Policy or tight money policy. Figure shows some of the effects of such a decision. When the Central Bank slows the rate at which the money supply is growing, it contracts aggregate demand. The fall in aggregate demand, in turn, reduces the quantity of goods.Thanks for sharing useful Information. Being Best ca course fees in coimbatore . One of the Leading Coaching Centres in Coimbatore for Chartered Accountancy.
ReplyDeleteThanks for sharing useful Information. companies are less incentivized to produce goods and may cut back on production. The ratio measures the loss in output per each 1% change in inflation.
ReplyDeleteThere exists a trade-off between output and inflation. The short run Phillips curve is quite flat. Within a year,Being Best US CMA coaching centre in Coimbatore . One of the Leading Coaching Centres in Coimbatore for US Certified Management Accountants.
Thankyou for sharing such as nice post, keep it sharing it will helpful.
ReplyDeleteaz accounting