Question

If a company does a batch processing at the end of the day, how do they know what is in stock presently?

Answer 1

If a company does a batch processing at the end of the day, they would be knowing the stock at beginning and end of the day. They need to keep track of the current stock as a function of the stock at the beginning of the day. Every order will result in reducing the total stock at beginning of the day and every time a new stock is received, it will increment the total stock.

So, if we consider

Sb, as the stock at the beginning of the day,

On, as total stock orders at any given point of time T and

Sn, as any new stock received before the given point in time T

Then, current stock at any point of time, say St can be calculated as below:

St = Sb - On + Sn