INVENTORY MANANGEMENT. RENUKA MEHRA LECTURER IN B.B.A.III GCCBA-42. INTORDUCTION. Inventory constitutes one of the most important elements of any system dealing with supply, manufacturing, and distribution of goods.
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LECTURER IN B.B.A.III
3) MRO Inventories- maintenance, repairs and operating supplies which are used in production process but do not become a part of product are called MRO Inventory.
4) Speculative Inventory- the shocking of material as a measure of speculation to get more prices of goods in future.
5) Safety Stock- is held in stock to protect against the uncertainties of demand and supply
Iii The loss of material due to deteriorations and obsolescence.
Iv Cost of breakage in handling of material.
Minimum Stock level= Reorder level- ( Average rate of Consumption* Average lead time)
b) Reorder Level-it is that level of stock that lies between the minimum stock and the maximum stock to be held. It is the level of inventory at which purchase requisition should be issued and purchase order made.