UNIT 6 Stock Levels

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi can anyone tell me which is the correct formula to use for the re-order level of stock, I'm using two different books and they appear to give two different answers???<BR><BR>According to the BPP book its - maximum usage x maximum lead time<BR><BR>According to Osborne its - maximum usage x maximum lead time + minimum stock level<BR><BR>Which to me would give you totally different answers.<BR><BR>Any ideas!<BR><BR>Cheers<BR><BR>from a slightly confused Anne<BR><BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    UNIT 6 Stock Levels

    I was told at college to go with the BPP book. My tutor has spoken to Les Nightingale - the new examiner, about this and Les told our tutor to stick with AAT which use the BPP book.<BR><BR>It is so confusing - Osbourne should change its formula!<BR><BR>Gook luck with the exam
  • System
    System Posts: 100,534 🤖 Admin 🤖
    UNIT 6 Stock Levels

    That's brilliant thank you for the reply.<BR><BR>It's good to know which formula to use, I hadn't realised that the AAT use the BPP books. Being given different formulas does tend to make life a bit confusing.<BR><BR>Again many thanks and good luck with the exam.<BR><BR>Cheers<BR><BR>Anne
  • System
    System Posts: 100,534 🤖 Admin 🤖
    UNIT 6 Stock Levels

    Be careful here. The AAT do NOT use BPP books (or for that matter, any other publishers books). I have also met Les Nightingale and have never heard him say such a thing.<BR>If you refer to the EXCR exam last December Section 1 Q2 was "The compny requires 25,ooo kgs of clay each week, and plans a buffer stock equivalent to 1 weeks usage (i.e. a minimum stock level). It takes between 1 and 2 weeks for delivery. Calculate the reorder level"<BR>The model answer was 75,000 kgs. i.e 2 weelks at 25,000 + 25,000 buffer stock. That appears to me to be in compliance with the Osborne formula whereas BPP would have given you the answer 50,000.<BR>You can find the Dec paper on the site.<BR>Graham Blott
  • System
    System Posts: 100,534 🤖 Admin 🤖
    UNIT 6 Stock Levels

    Sorry about that I will pass this onto our tutor who misguided me
  • System
    System Posts: 100,534 🤖 Admin 🤖
    UNIT 6 Stock Levels

    Thank you to the both of you, for your replies, no wonder there is confusion on the subject when the books give different formulas.<BR><BR>Makes you wonder if there are any more discrepancies between the different text books?<BR><BR>All adds to the fun!!<BR><BR>Thanks again<BR><BR>Anne

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