The formula for your critical inventory number is (Order quantity + Safety stock)/2. The number from this calculation is the amount of stock you should keep on hand so that you can fill all orders ...

Understand cost of material consumed, stock-in-trade, and inventory changes. Learn practical explanations, regulatory ...

Accounting policies, rapid changes in costs ... Analysts use COGS instead of sales in the formula for inventory turnover because inventory is typically valued at cost, whereas the sales figure ...