Any methods or anagrams for remembering formulas in cost and revenues?

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Struggling to rremember

Minimum level = reorder lever - (average usage X average lead time)
Maximum level = reorder level + reorder quantity - (minimum usage X minimum lead time)

And reorder level = max usage + maximum lead time +buffer

Keep getting them all juggled up any methods to remember them?

Thanks!

Comments

  • Nps
    Nps Registered Posts: 782
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    How about writing them on A4 pieces of paper and sticking them up in different rooms? First just remember what room each formula is in, then you can visualise the surroundings and start to remember what's written on each piece of paper. Taking key points of the formula and connecting them to something particular in the room can help too. Or tell a story in each room which describes the formula.

    Eg, minimum order level - use a downstairs room, eg lounge (minimum/lowest floor). Reorder level (you have a video reCorder in your lounge), you use this about the same amount of time as your neighbours (average usage) and you have the same number of leads connecting them (average lead time) as most people with a video recorder. The sillier the story the better, the better you'll remember it. My example probably isn't the best as it's just off the top of my head to demonstrate but you get the idea.
  • topcat
    topcat Registered Posts: 452
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    What a great idea i will try to come up with some ideas , thank you :thumbup1:
  • Nps
    Nps Registered Posts: 782
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    Do let me know if it works for you, and what story you used!
  • Nps
    Nps Registered Posts: 782
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    Another way would be to just concentrate on one of the formulae today. Ignore the others for a few days. Get just that one cemented in your mind. Then after a few days add then next one, and just keep repeating both of them to yourself. You should be able to recite the first one without thinking about it by now. By the time you add the third one, you should know the first two like the back of your hand.
  • Clintm15
    Clintm15 Registered Posts: 248 Dedicated contributor 🦉
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    These formulas have some simple logic that makes them easier to remember.

    The re-order level needs to be set to the amount so that you wont run out of stock before the next delivery arrives. So you need to know how much stock you are using daily and and how many days it takes for an order to arrive. This is why the formula contains 'usage X lead time'. The buffer is added in case sales are higher than expected.

    After the delivery days are over and delivery is arriving you should be left with the buffer (under normal sales conditions), also known as the minimum stock level. To fill up the remaining stock room space you would need to order the amount that fills the stock room minus the buffer you already have. This is why the re-order quantity is maximum stock level - minimum stock level. The formula for maximum stock level is just a reconfiguration of this formula.

    I just imagined myself running a very basic business like a toy shop that sells one toy. Then I just applied the logic.
    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
  • Spamkebab
    Spamkebab Registered Posts: 233 Beyond epic contributor 🧙‍♂️
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    I set things out in my mind much the same way as Clint.

    An active imagination goes a long way to helping understand things. I have used a banana bending company in the past for manufacturing accounts, so many straight bananas, materials, so many half bent bananas, WIP, so many fully bent bananas, finished goods. It was something like that anyway lol.

    Neil.
  • Clintm15
    Clintm15 Registered Posts: 248 Dedicated contributor 🦉
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    Spamkebab wrote: »
    I set things out in my mind much the same way as Clint.

    An active imagination goes a long way to helping understand things. I have used a banana bending company in the past for manufacturing accounts, so many straight bananas, materials, so many half bent bananas, WIP, so many fully bent bananas, finished goods. It was something like that anyway lol.

    Neil.

    Neil, that is genius. I wish I'd thought of that for manufacturing company accounts.
    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
  • Spamkebab
    Spamkebab Registered Posts: 233 Beyond epic contributor 🧙‍♂️
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    Lol Clint, you can even bend a banana too far resulting in waste. Then maybe sell this waste to a banana smoothie making company.

    It goes on and on.............

    I think the dafter the story and background, the easier the subject matter sinks in.

    Neil.
  • steve2008
    steve2008 Registered Posts: 89 Epic contributor 🐘
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    Where in the world would you buy straight bananas?

    I think a banana straightening company is more plausible, means the stock is easier to get. :tongue_smilie:

    I agree with the methods though. I always try to understand any formulas so I don't have to remember them. It might take a bit longer in the exam to do the questions while you work the formulas out but you will know the formula is right.
  • Spamkebab
    Spamkebab Registered Posts: 233 Beyond epic contributor 🧙‍♂️
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    You can't buy straight bananas, the EU disallows the purchase of, hence the banana bending company. Someone has to make sure the banananananas meet regulations and criteria.

    Apologies to the OP lol

    Neil.
  • omega man
    omega man Registered Posts: 283
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    These are all tricks you learn when you are training your memory. I know because i bought a memory concentration course when i was alot younger.
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