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Minimum and Maximum stock level

For calculating Maximum Level, we subtract from ROL + EOQ the minimum consumption. For calculating the Minimum stock level, we subtract from ROL the average consumption. Wouldn't we get a better view of minimum level if we subtracted the maximum consumption from ROL ?


Aman Mahajan

Aman Mahajan

CA Inter

18K+

14-Jan-21 19:57

19

Answers (1)

If we keep minimum too low, it may lead to a stock out situation.


Suraj Lakhotia

Suraj Lakhotia

Admin

18-Jan-21 18:28

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