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I need HELP! determining stock to maintain on hand (Andrea's Blog)

College-Cram.com:: Andrea:: I need HELP! determining stock to maintain on hand (Andrea's Blog)

June 15, 2009

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Andrea

I need HELP! determining stock to maintain on hand

I need a formula or equation for determining par stock levels.  I sell three re-supply products most commonly replaced every 3 or every 6 months.  I know what qty I shipped of each during each of the past six months AND I know how many new customers were established six months ago and three months ago.  I can assume a 50% compliance rate among 6-month old customers and a 25% compliance rate among 3-month old customers.  With all this info, I should be able to project my stock needs for the next month & determine the qty of each product to have on hand--how do I do that?

Keywords: economics, equation, formula, par stock levels

Posted by Andrea

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