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5-STOCK MANAGEMENT (ORGANIZING STOCK (Organize Product & Vendor…
5-STOCK MANAGEMENT
Stock management
the function of understanding the stock mix of a company and the different demands on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level.
Stock control
otherwise known as inventory control, is used to show how much stock you have at any one time, and how you keep track of it.
Efficient stock control allows you to have the right amount of stock in the right place at the right time
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STOCK VALUE
Categorize stock further, according to its value
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KEEPING IT LOW-STOCK
Advantages
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Efficient and flexible - you only have what you need, when you need it
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STOCK CONTROL METHODS
Minimum stock level - identify a minimum stock level, and re-order when stock reaches that level. This is known as the Re-order Level.
Stock review - have regular reviews of stock. At every review ,place an order to return stocks to a predetermined level.
Just In Time (JIT) - this aims to reduce costs by cutting stock to a minimum. Items are delivered when they are needed and used immediately. There is a risk of running out of stock, so need to be confident that the suppliers can deliver on demand.
Stocktaking involves making an inventory, or list, of stock, and noting its location and value.
STOCK CONTROL SYSTEMS
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Stock cards - description, value, location, re-order levels, quantities and lead times (if this method is used), supplier details, information about past stock history
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STOCK PERFORMANCE
STOCK TURNOVER RATE - number of times the stock in a business has 'turned over', or been replaced, in a year.
higher the stock turnover rate, the better stock/business is performing.
The lower the rate, the longer the stock is taking to turn over.
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