Someone please help out what is the logic behind these formulas....
Reorder level= Maximum reorder period* maximum usage
Minimum level= Reorder leverl - ( normal usage * average reorder period)
1 Replies
arjun s
(CA Final)
(299 Points)
Replied 11 October 2011
Re order level tells about the time required to receive the goods and to avoid stop of manufacture due to non availability of raw materials
Minimum level is the least amount of stock to be kept always in hand
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