Five categories of stocks
- PIPELINE stock (in process stock, in transit stock)
- CYCLE stocks (batch production owing to
- economies of scale
- technological requirements)
- SEASONAL stocks ( time varying requirements of an item)
- SAFETY stocks (supply and demand uncertainties,lead time
uncertainties)
- Stocks held for OTHER REASONS (- decoupling stages of
production - price, quantity discounts,- speculation)
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