Question

a stockist of company has average monthly sale of 30 lakhs.assume the month to have 30 days.what should be average stock holding if the company norm is to keep average inventory of 10 days?

Answer 1

You need to have stock of

30 lac x 10 days / 30 days = 10 lac.

In simple language, per day estimated sales are 1 lac (30 lac / 30 days). For keeping ten days stock, you'll need 10 days x 1 lac for each day.