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Lecture Circulating Assets.doc
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If there are several suppliers the transport stock is defined as the weighted average value with taking into account the duration of the transit time and the volume of supply:

Volume of supply

The transit time of the cargo

Days

The 1-st supplier

20

15

The 2-nd supplier

30

14

The 3-rd supplier

10

12

Ttrans = (20 ×15 + 30 × 14 + 10 ×12) /(20 + 30 + 10) = 14 days

The current warehouse stock of material assets is the stock which provides the needs of manufacturing for the period between their two regular intakes.

The structure of circulating assets includes the average current stock accepted at the rate of 50 % from duration of the interval between two adjacent deliveries:

Tcur = I / 2 ,

where I - the duration in days of the interval between deliveries.

The average interval between deliveries can be calculated according to the following formula:

I = 360(180, 90) / ND ,

where ND - the number of deliveries during the period.

The stock intended for providing the needs of manufacturing in case of the delay of material assets delivery is referred to as the guarantee (insurance) stock of material assets.

Calculating in different ways the size of circulating assets, which is necessary for their normal work, increases the efficiency of using this resource.

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