Stock Level Formulas

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am trying to learn the stock level formulas and have as follows.<BR><BR>Reorder quantity - This is the square root formula but I can't work out how to type it.<BR><BR>Reorder level - Maximum Lead time x Maximum usage<BR><BR>Minimum Stock Level - Reorder level - (average usage x average lead time)<BR><BR>Maximum Stock Level - Reorder Quanity + Reorder Level - (Minimum Usage x Minimum Lead time)<BR><BR>Can someone please let me know if these are correct<BR><BR>Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stock Level Formulas

    You are correct:<BR><BR>reorder quantity type 2 x cost x demand /holding cost =then square root then =
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stock Level Formulas

    Reorder quantity is : max stock level - min stock level<BR><BR>Reorder level is : (max lead time x max usage) + min stock<BR><BR>min stock level is correct<BR><BR>max stock level is : min stock level - (average usage x average lead time)

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