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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Minimum Level Of Inventory

It is also known as buffer stock,minimum limit or minimum stock.it indicates the minimum level of stock that should always be maintained in stock so that there no risk of stoppage of production.it implies that the supply of the material ordered for purchase should arrive by the time of minimum level is reached by usage.the fixation of this level depends on lead time.

o-(a*l)

here,o=order point,a=average usage rate,l=average lead time.

ENTER THE VARIABLES TO BE USED IN THE FORMULA