The finished product standard is the required minimum of inventory items, which it is important for the company to have in the warehouse all the time. If the volume of finished products is higher than the calculated standard, this indicates the ineffectiveness of the distribution of the financial flow at the enterprise. When the actual balances of finished products in the warehouse are lower than the standard ones, this leads to interruptions in the process of selling goods.
It is necessary
- - data of financial statements on balances and receipt of finished products;
- - norms of time for carrying out warehouse operations.
Instructions
Step 1
To calculate the standard for the balance of finished products in the warehouse, you need to multiply the average daily amount of finished products coming from production or from suppliers by the time standard in a day.
Step 2
Calculate the total volume of deliveries of finished products to the warehouse for the planning period - a year, quarter or month, depending on the period for which it is necessary to determine the finished product standard. This figure will be needed to determine the average daily volume of finished products.
Step 3
The calculation is made as follows: the remainder of products in the warehouse at the beginning of the planning period is summed up with the expected volume of products that are subject to issue from the warehouse in the planning period. Then, from the resulting figure, it is necessary to subtract the volume of products that will be used for the company's own needs, as well as the standard volume of balances of finished products at the end of the planning period.
Step 4
Determine the average daily volume of finished products arriving at the warehouse. For calculations, a month is taken as 30 days, a quarter - 90 days, and a year - 360 days. To find out the average daily volumes of finished products, take the total supply of inventory items and divide it by the number of days of the billing period. Since at this stage the calculations are made in kind, for products that have different units of measurement (for example, pieces, kilograms, meters), this indicator should be determined separately for each item.
Step 5
Calculate the standard of time, or the so-called sales cycle: the time during which the finished product is in the warehouse from the moment of receipt to the moment of shipment. To find out the time standard, you should summarize all the time norms established for warehouse operations, namely: sorting, warehousing, packaging, marking of finished products, as well as picking goods for each customer or consignee. All the listed norms of time for the purpose of calculating the standard of finished products must be expressed in days.
Step 6
Multiply the numbers obtained: the average daily amount of incoming finished products and the standard time. As a result, you will receive the standard of stocks of finished products, expressed in physical terms.
Step 7
Convert the standard of finished goods stocks into monetary terms. To do this, it is necessary to multiply the resulting standard by the average price of one unit of production.
