The value of inventory under periodic & perpetual inventory system is different. The value of inventory under perpetual system is more than periodic system
DETERMINATION OF STOCK LEVELS
Data of concentrate at J&J is as follows – Maximum consumption
= 5000Dz per day
Minimum consumption
= units per day
Normal consumption
= 59 units per day
Re-order period
= 10-15 days
Re-order quantity
= 878 units
Normal re-order period
= 12 days
Re-order level
= Maximum consumption * Maximum Re-order period
Data of concentrate at J&J is as follows – Maximum consumption
= 65 units per day
Minimum consumption
= 55 units per day
Normal consumption
= 59 units per day