Inventory Management Formula — OpenTuition Forums

Dddnguyen10y ago

Hi Tutor Could you give me an explanation for the formulas: Minimum level = reorder level – (avg usage x avg lead time Maximum level = reorder level + reorder quantity – (min usage x min lead time) Thanks a lot

John MoffatTutor10y ago#1

You can find an explanation by watching the revision lectures on inventory control. https://opentuition.com/acca/f2/acca-f2-revision-part-7-inventory-control/

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