Cycle inventory


0

Cycle inventory: it is also known as base stock. It can be defined as the % of the inventory that results from the replenishment process. Cycle inventory can also be said to result when in order to reduce unit purchase costs (or increase production efficiency), the number of units purchased (or produced) inventory from to which the lot size is applied. It may be more economical to order the product in a large size than to order it in small batches. At the beginning of a performance cycle, the stock level is at the maximum level. However daily customer demands stock to be withdrawn from the inventory until it reaches zero. Prior to this, a replenishment order must be given. The amount ordered for replenishment is called the order quantity. The average inventory held as a result of the order process is referred to as base stock, which is also called as the lot size stock. Usually the base stock equals to one half of the order quantity.

 


Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

6 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format