Contents - Tanzania Revenue Authority

securing of goods, before available goods are
obsolete or get to minimum stock level. If new
supply is delayed current stock may get finished
and disturb the flow of business.
• Economic Order quantity
Before you decide how much you want to order
you have to underscore the cost implications of
buying large quantities and storing part thereof
or ordering more than once. If the costs of
making a single order are greater than that of
several orders or vice versa, that kind of order is
not beneficial to you. An economic order is
achieved when the cost of a single order is equal
to that of storage; for further explanation, refer to
the diagram below: -
CHANGES IN STORAGE, PROCUREMENT AND SALES OF
_
______ _____________________
_______________________________ ____
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