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Inventory management

Financial Management

In illustration 13 why 30000 /2 ?

Swathi Krishna

CA Final

★ 8K+

25-Jul-20 18:06

373

Answers (2)

This is from working capital section

Thread Starter

Swathi Krishna

CA Final

★ 8K+

26-Jul-20 15:11

Since 7,600 will be the fixed inventory level, you need to take the average of the order size. And so the average stock maintained should be 7,600 (fixed) + 30,000/2 (average order size) = 22,600 tonnes

Madhuri Veluri

CA Inter

★ 2K+

27-Jul-20 13:39

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