manual on management of drugs

I - Annual stock holding cost as a proportionate of stock value
Safety Stock Level (SSL):
Usage in a fixed duration determined based on ABC category (1-3 months)
for items with consistent demand and for items with less consistent demand,
standard deviation of the difference of demand [forecasted or estimated and
actual demand x selected safety factor (25%-40%)]
Minimum Stock Level (MSL):
MSL = Re-Order Level + Usage in the review period
Maximum Stock Level (MSL):
MSL = [Minimum stock level + EOQ- (The usage in review period/2)]
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