Determine when to stock, Cost Accounting

Determine When to Stock

It will be influence with the inventory system in place as given:

1. Periodic order system.

The firm obtains a new order of the amount specified through the order quantity on equal intervals of time. The firms find out the safety stock' the minimum and maximum inventory, and the reorder level.

2. Continuous Review System

The firm places orders at usual intervals however the order quantity varies according to how much a firm needs to bring the level to several predetermined value or size.

3. Just In Time Inventory System

This is a concept developed through the Japanese and advocates zero inventory and stockless production. During the addition, it calls for hundred percent (100%) quality. Several of the major features of JIT involve as:

a) Reliable and frequent deliveries to ignore inventory buildup. Companies are setting also delivery dates along with penalties for not meeting them.

b) Closer position to customers and suppliers

c) Improved communication among suppliers and companies via the employee of computerized purchasing systems which permits for online ordering.

d) Single sourcing and maintain long-term relations along with little trusted suppliers.

e) Raised supplier involvement in the design aspects of a product to ensure about for they meet the company's quality necessities.

f) Maintenance of strict quality control via all parties.

Posted Date: 2/5/2013 4:47:02 AM | Location : United States







Related Discussions:- Determine when to stock, Assignment Help, Ask Question on Determine when to stock, Get Answer, Expert's Help, Determine when to stock Discussions

Write discussion on Determine when to stock
Your posts are moderated
Related Questions
What is the easiest of calculate equivalents before producing a process account 2

It is important to have performance measures to evaluate managers as they control resources and invest in assets for the company. Describe how you could use different variances (ac

Describe the concept of full cost recovery with illustrative examples.

The following data (in thousands of dollars) have been taken from the accounting records of Barn Burner Corporation for the just completed year.       Sales

Calculate the skewness and kurtosis statistics for your assignment portfolio. How do these reconcile with the assumptions behind Modern Portfolio Theory? Demonstrate analyticall

Accounts are prepared according to accounting concepts, principles and conventions. As final accounts are prepared on accrual basis, this becomes essential to subtract all those ex

Standard Costs Establish the Minimum Desirable Costs When actual costs incurred exceed or else are below the standard costs, we after that investigate the variances along with

What are investment appraisal methods when opening a new project?

Weighted Average Method - Work in Progress While this method is employed, all costs of production are considered in assigning costs to inventory. The method puts together open

Calculation of Deductions - Wages Department A range of deductions are complete from gross earnings when computing the net payment because of the employee, that deductions may