Itqualityassurance
What are stock levels explain?
Stock level means the level of stock required for an efficient and effective control of goods, to avoid over-and under-stocking of goods. The need of inventory control is to maintain the stock of goods as low as possible but at the same time make them available as and when required.
What is minimum stock level with example?
Calculating minimum inventory levels
To calculate your minimum inventory levels, use the following formula: minimum inventory level = reorder point – [normal consumption × normal delivery time]. For example, say you sell t-shirts. Your reorder point is 10k shirts with a normal delivery time of 6 weeks.
