Surplus
stock lot is the situation when a company has an
excess amount of what is needed, no matter if it is due to product development
or excess of products for the company’s own set limit.
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When Purchase of Stock in Excess Quantity:
When the purchase of raw material was made to
target the production of 800 T.V.’s per month but the actual production was
only 650 T.V.’s, this result in the surplus stock lot.
●
When Purchasing bulk quantity is Unavoidable
It is very obvious that manufacturers do not
order a small quantity. In such a case, the materials required for current
needs should be kept and the excess should be disposed of.
