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Need help how to calcute stock value

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beiga View Drop Down
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Joined: 29 Oct 2012
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    Posted: 29 Oct 2012 at 8:45am
Hi,
I've got stuck with trying to calculate how much my stock value would be with two different lead times. I've calculated EOQ with Wilson formula, but what I can't figure out is
"what will it cost me in stock value if I purchase from supplier A or supplier B"

Supplier A's lead time is 180 days
Supplier B's lead time is 54 days.

Surely, net price is lower at supplier A, but the total cost (inventory value and such) I think
would be lower if purchasing from supplier B - but I can't figure out a formula showing that ....

Lead time as per above
Total consumption for 1 year is 200 pcs.
Service level is 95%


Edited by beiga - 29 Oct 2012 at 8:45am
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BillD View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote BillD Quote  Post ReplyReply Direct Link To This Post Posted: 29 Oct 2012 at 2:01pm

It seems Supplier A is always a choice when you are not paying in advance. If payment terms are the same (pay on or after delivery) then the lead-time does not affect your costs, because the "cost per order" will not include the cost of borrowing money. Therefore, the lead-time will not be included in the Wilson formula. Just place the orders 126 days in advance with supplier A as oppose to B. All variables are the same except for the unit cost. Therefore, Supplier A is a winner.

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Muhammad Junaid View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Muhammad Junaid Quote  Post ReplyReply Direct Link To This Post Posted: 29 Oct 2012 at 11:11pm
I would like to ask about alert minimum stock in ABC inventory (not commercial) also want to know about choice of months like if i want to view only previous month entered data so can I view? 

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BillD View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote BillD Quote  Post ReplyReply Direct Link To This Post Posted: 31 Oct 2012 at 1:29pm
There is no "minimum stock" allert, because it would not tell you much having outstanding purchase, sales, and production/consumtion orders. Use Reports, Inventory to Order menu instead. This report will not make you double-order.
 
An naswer to the second question depends on type of data: inventory adjustments, list changes, order chnages, etc. There are reports for each type of data. If you see a date in the report, set the filter for it "between", 1/1/2012, 1/31/2012 to runt report for Januarry 2012.
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