Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
MANAGEMENT
&
Its Techniques By: SHUBHAM MITTAL
ROLL NO. 55
MBA SFS
USM , Kurukshetra
University
INVENTORY
Inventory denotes the stock of goods . In
accounting terms inventory is treated as
stock of finished goods only, while in
manufacturing concern this may include
work in progress, stores, raw materials etc.
ELEMENTS OF INVENTORY
RAW MATERIAL
DIRECT MATERIAL: e.g wheat
INDIRECT MATERIAL: e.g coal
WORK-IN-PROGRESS
FINISHED GOODS
𝟐𝑫𝑶
EOQ EOQ=
𝑯
D= DEMAND ANNUAL
QUANTITY
O=COST OF ORDERING
H= ANNUAL CARRYING COST
RE-ORDER LEVEL
The point at which the store-keeper
makes a fresh request for the purchase is
known as the reorder level.
Reorder level is that minimum level of
quantity of material / safety stock which
helps in production , up to when the new
stock will not come.
Reorder level=Maximum Consumption rate ×
Maximum reorder period