Financial management Notes in Hindi CS Executive - CSHindinotes

CS EXECUTIVE FINANCIAL MANAGEMENT
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Chapter ‐ 10
Management of Inventory
1) Reorder Level = Maximum Consumption Maximum Reorder Period
2) Minimum Stock Level = Reorder Level
Period.
Avg. Consumption Avg. Reorder
3) Safety Stock = Reorder Level Avg. Consumption Avg. Reorder Period.
Maximum Stock Level = Safety Stock
4) Reorder Level = Safety Stock + Avg. Consumption Avg. Reorder Period.
5) Maximum Stock Level = R.O.Q. + R.O.L.
Reorder period.
Minimum consumption Min.
6) Maximum Stock Level = E.O.Q. + Safety Stock
7) Average Stock Level =
E.O.Q. is also known as Reorder Quantity
OR
= Safety Stock + (Reorder Quantity)
8) Danger Level = Reorder Period for emergency Purchase Avg.
Consumption
COMPILED BY MS. SHWETA AGARWAL CA, CS Page 9