Minimum Stock Level to be Maintained

Minimum stock level to be maintained = Maximum rate of consumption x time required for procurement + some additional quantities as safety margin. 

There could be some different views here if the concept of just in time is followed in the organisation. However, safety, pollution control, energy efficiency, and product quality shall not be compromised for reducing the essential items in inventory (even if some more funds get blocked due to the additional items stored). 

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An analysis of the consumption pattern of various items is necessary to arrive at the minimum stock levels to be maintained at all times. A proper estimation of supply of all required inputs as per expected demand should be made. 

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