Base Stock Policy

Posted in Operations and Supply Chain Terms, Total Reads: 4105
Advertisements

Definition: Base Stock Policy

Base stock refers to the minimum inventory necessary for the firm to maintain effective and continuous operations.

On the same lines, base-stock policy or the base-stock method is a method pertaining to inventory valuation.

The policy states that an organization values the base stock at the acquisition cost and all the additional stock over the base value is valued on either LIFO or FIFO basis.


Browse the definition and meaning of more terms similar to Base Stock Policy. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary



Share this Page on: