Stock Level.

Q33. Write short notes on the following:

  1. Re-order Stock Level.
  2. Maximum Stock Level.
  3. Minimum Stock Level.
  4. Average Stock Level.
  5. Danger Stock Level.

Ans.

  1. Re-order Stock Level: The stock level at which fresh order is to be given for purchase of goods is called reorder level. Reorder level should be enough to meet the requirement of material at the time of reorder. It is more than minimum stock level but less then maximum stock level.
  2. Maximum Stock Level: The stock level which is maximum at any point of time is called maximum stock level. Actual stock level maybe equal or less than maximum stock level but cannot exceed to such level.
  3. Minimum Stock Level: The stock level which should be available all the time is called minimum stock level.
  4. Average Stock Level: The stock level which is normally held in stock is called average stock level.
  5. Danger Stock Level: The stock level at which normal issue of goods is stopped and goods is issued only for emergency use.

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