Description of Issue

How to determine purchase issue ratio

Context

Inventory Management

Cause

Informational

Resolution

Divide number of individual items purchased by the number of individual items issued at a time:

Ex.: Purchase items by the case (4 to a case), but issue them individually. Ratio would be 4 (4 divided by 1).
Ex.: Purchase items individually, but issue them in packs of 20. Ratio would be 0.05 (1 divided by 20).

Additional Information

Upon receipt, the number of items received is multiplied by the purchase issue ratio to come up with the total items received.
Unit price is determined by dividing the receiving unit cost by the purchase issue ratio.

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