Determine when to stock, Cost Accounting

Assignment Help:

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.


Related Discussions:- Determine when to stock

Multiple product scenarios, Break-even analysis can be used to work out eit...

Break-even analysis can be used to work out either a break-even volume or revenue, as per given a multiple product scenario. This is achieved using 'average contribution per unit'

Calculate the amounts that will show in the statement, MX obtains 80% of th...

MX obtains 80% of the 1 million issued $1 ordinary share capital of FZ on 1 May 2009 for $1,750,000 when FZ's reserved earnings were $920,000. The carrying worth was considered

Advantages of standard costing, ADVANTAGES OF STANDARD COSTING 1.     I...

ADVANTAGES OF STANDARD COSTING 1.     It offers a yardstick for measurement of performance. 2.     It helps 'Management by Exception'. 3.     It allows the management to

Material handling, Material Handling The objective is to ensure about ...

Material Handling The objective is to ensure about the goods are delivered to the right places at the right instance and in aright manner to ignore delays, unnecessary and con

Statement of changes in working capital, A statement of changes in working ...

A statement of changes in working capital assists us in locating where such changes took place. In the first example we try to demonstrate the increase or decrease in particular it

Classification, what is the classification of cost & how it is done?

what is the classification of cost & how it is done?

Time analysis - cost accumulation, Time Analysis - Cost Accumulation T...

Time Analysis - Cost Accumulation This is generally achieved via having the employee complete a daily or weekly timesheet or via contain job cards or piecework tickets. As whe

Objectives of budgetary planning, Objectives of Budgetary Planning 1...

Objectives of Budgetary Planning 1) Coordination The budgetary process needs that visible detailed budgets are developed to cover every activity, function or department

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd