inventory control full meaning (mba)
Post on 11-Nov-2014
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DESCRIPTION
INVENTORY CONTROL may be defined as a scientific method of finding out how much stock should be maintained in order to meet the production demands and be able to provide right type of material at right time in right quantities and at competitive prices..........
TRANSCRIPT
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INPUT
Material
Management
Department
OUTPUT
Production
Department
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7
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10
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12
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Annual Carrying Cost = 10
100 X 59294 X
1
Or no.
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SL NO. ORDERING NO
ANNUAL ORDERING COST
ANNUAL
CARRYING COST
TOTAL
INVENTORY COST
1 12 12 X 238 = 2856 494.11 3350.11
2 6 6 X 238 = 1428 988.23 2416.23
3 4 4 X 238 = 952 1482.35
2434.35
4 3 3 X 238 = 714 1976.47
2717.47
5 2 2 X 238 = 476 2964.7
3440.7
6 1 1 X 238 = 238 5929.4
6167.4
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Annual ordering Cost
Ordering no
Co
st t
o O
rder
& C
arry
ing
EOQ
6
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EOQ =
2 DS
H
D = Annual Demand/consumption
S = Annual ordering cost
H = Annual holding cost
(It include inventory carrying cost)
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EOQ =
2 DS
H
EOQ =
2*59294 *238
988.23
5.38 ORDER
OR
6 ORDERS(Rounded off)
=
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