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Determined the RRT (Reliable Replenishment Time) which was basically, production cycle time + transit + order entry + some kind of pad (if it was shipping rail we'd put in a 7_10 day pad) by truck maybe a 3 day pad. What ever the sales were (that we could expect a majority of the time) for that RRT was what we made the max inventory level.
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Distinguish between in-process inventory and safety stock inventory and seasonal inventory?
Inventory need for the ongoing process and kept at a level that production will not be affected. Inventory kept for emergencies, or as a buffer for a sudden a surge in demand. Inventory that is only needed for one season, after which it is sold off or stored off-site.
How do you calculate the equilibrium level of GDP?
at the equilibrium level of GDP + formula
What is economic optimization?
it is the best use of available scarce resources in such a way that the satifaction level is maximum..so we can say minimum usage of resources and maximum level of output.
How do you calculate the equilibrium level of consumption?
you first have to culculate equilibrium level of income.
How do you calculate the profit maximizing output level given a total revenue and total cost function?
how to calculate profit maximizing water level under quadratic cost function
Examples of how to calculate minimum maximum inventory level?
Minimum: (AMU/30.4)*(Leadtime*SafetyStock) Maximum is the Difference between the Minimum and Buy Qty
What is a maximum stock level and what is the re-order level?
The maximum stock level is the highest quantity of inventory a business can hold to avoid overstocking. The re-order level is the inventory level at which a new order should be placed to avoid running out of stock.
How to calculate average change IN INVENTORY?
You calculate average change in inventory by dividing the turnover by how many times it has turned over. The number you get is the average.
How do you calculate inventory turnover?
This is a very simple calculation. Days to Sell Inventory(or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) / 2 To calculate this ratio for a quarter instead of a year use the following variation: Days to Sell Inventory (or Days in Inventory) = Average Inventory / "Quarterly" Cost of Goods Sold /"90" Average Inventory = (Beginning Inventory + Ending Inventory) / 2
How to calculate Inventory turnover period?
Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory
What Does Mins and Max represent In inventory?
Minimum and maximum
How do you calculate inventory cost?
Doing your mom
What would be the effect if maximum stock level is exceeded?
Exceeding the maximum stock level can lead to increased storage costs, potential product spoilage or obsolescence, and tie up capital that could be used elsewhere. It can also result in stockouts of other items if space is being occupied by excess inventory.
What do the terms MINS and MAXS represent for inventory?
Often used in inventory control, Min-Max means the minimum amount you need in physical inventory. Max means just the opposite, the maximum amount you need to have in physical inventory. When the stock falls below minimum, you would order up to the maximum amount to replenish the stock.
How do you calculate cost of placing an order in inventory management?
calculate the average cost of placing one order
What is the equation used to calculate the maximum of e-in an energy level?
The maximum number of electrons in an energy level can be calculated using the formula 2n^2, where n is the principal quantum number of the energy level. This formula is derived from the fact that each energy level can hold up to 2 electrons per orbital, and the number of orbitals in an energy level is given by n^2.
What is the difference between inventory and warehousing?
Inventory is a control which establishes optimum levels of stocking of materials and equipment for a particular process. It establishes a record keeping system to record the location, present quantity, and minimum and maximum stocking level of each item held in inventory. When a minimum stocking level is reached, the item is reordered; the maximum stocking level determines how many units are ordered. The process of ordering materials is usually a function of a separate department called Purchasing. Inventory control is necessary in retail sales, wholesale sales, in manufacturing, and construction, where such materials are time critical and need to be available at the moment of request. Warehousing is a control which manages and maintains the storage area for the inventory. It assures that storage space is available for each item of inventory, that there is a mechanisim in place for efficiently transporting stored materials into and out of the warehouse or storage area, and that there is an identified space for each stored item.
