Ask Experts Questions for FREE Help !
    veearrgee's Avatar
    veearrgee Posts: 3, Reputation: 1
    New Member

    Jul 3, 2007, 03:54 AM
    Maintaining stock
    How to calculate Minimum stock, maximum stock and reorder level quantity while doing material purchase.

    wags's Avatar
    wags Posts: 80, Reputation: 4
    Junior Member

    Jul 11, 2007, 10:10 PM
    You will need to know sales, how long to get more stock from your supplier. If your peak sales were 10 units a month, and it takes two months to get more product then you would need a minimun of 20 units. Sales typically are not stable week to week or month to month, so your inventory needs will change with the seasons. Ordering material to arrive as you need it is Just in Time inventory, this is extremely difficult to do without a lot of history on product sales.
    You want your inventory to be a low as possible, but high enough so you never lose a sale due to an out of stock situation.
    Good Luck!
    Princess Buyer's Avatar
    Princess Buyer Posts: 7, Reputation: 1
    New Member

    Jun 22, 2008, 08:59 AM
    Have you looked into a MRP system? This type of system will do all the calculations for you once you feed in stocking levels and usage.

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Accounting for treasury stock used in stock dividend [ 1 Answers ]

How do I account for treasury stock use in a stock dividend for preferred stock? What would the journal entry by? I don't believe I should debit retained earnings for this transaction, but I'm not sure what account to debit. Please Help

Absorption Costing - Opening stock and closing stock query? [ 3 Answers ]

Hi guys, I have an absorption costing query on the profit statement, here are the notes: Selling price per unit = 20 Sales for year 1 = 10,000 Production = 20,000 Production Cost Per Unit = 10 YEAR ONE

Stock Split and Stock Dividend Differentiated [ 2 Answers ]

What are the differences between the accounting and securities market between the 2 methods of increasing the number of shares outstanding. The 2 methods are stock splits and stock dividends.

Maintaining well pressure [ 5 Answers ]

I am a recent owner of a well water system. I have learned to turn the pumptrol lever to off and then move until it makes contact and hold. The pump comes on and I continue to hold until I am past 20 on the gauge. I then release and it goes to automatic. The pressure continues to rise to about...

View more questions Search