1. Total Cost
Total Cost = Buying Cost + Carrying Cost + Ordering Cost
Total Cost = Buying Cost + Carrying Cost + Ordering Cost
2. Economic Order (Reorder) Quantity
3. Consumption during Lead Time
Normal Consumption × Normal Lead Time
Normal Consumption × Normal Lead Time
4. Reorder Level (ROL)
Maximum Consumption × Maximum Lead Time
Maximum Consumption × Maximum Lead Time
or
Minimum Level + Consumption during Lead Time
or
Safety Stock + Consumption during Lead Time
5. Consumption during Lead Time
Average Consumption × Average Lead Time
Average Consumption × Average Lead Time
6. Maximum Level
ROL + ROQ − (Min. Consumption × Min. Lead Time)
ROL + ROQ − (Min. Consumption × Min. Lead Time)
or
EOQ or ROQ + Safety Stock
7. Minimum Level
ROL − (Normal Consumption × Normal Lead Time)
ROL − (Normal Consumption × Normal Lead Time)
8. Danger Level
Normal Consumption × Max. Lead Time for Emergency Purchases
Normal Consumption × Max. Lead Time for Emergency Purchases
or
Min. Consumption × Emergency Delivery Time
9. Average Stock Level
$$ \frac{Maximum\ Level + Minimum\ Level}{2} $$
$$ \frac{Maximum\ Level + Minimum\ Level}{2} $$
or
$$ Minimum\ Level + \frac{1}{2} \times EOQ $$
12. Inventory Turnover Ratio
$$ \frac{Raw\ Material\ Consumed}{Average\ Stock} $$
$$ \frac{Raw\ Material\ Consumed}{Average\ Stock} $$
13. Inventory Turnover Period
$$ \frac{365}{Inventory\ Turnover\ Ratio} $$
$$ \frac{365}{Inventory\ Turnover\ Ratio} $$
16. Total Carrying Cost
$$ Carrying\ Cost\ Per\ Unit \times \frac{EOQ}{2} $$
$$ Carrying\ Cost\ Per\ Unit \times \frac{EOQ}{2} $$
5 Comments
thank you for sharing such valuable information
ReplyDeletecomptable syndic benevole
To 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.
I’m glad to see your blogs these blogs usefully for all student who want grow future about Financial Accounting office management also helpfully college student who want submit his project really thanks full yours share this type of article on your blogs I never see other blogs information.
ReplyDeleteTop 10 office Management institute in Delhi NCR
Best Computer Institute in Delh
Graphic Designing Institute in Delhi NCR
Lovely blog thanks for sharing online platform to everyone help read your blog for get information
ReplyDeleteData Analytics Course in Delhi
Best Computer Courses in Delhi