Stock Control

        Stock control is essential. Records and keeping an update of stock is of high importance. Stock must be motivated by not only one person and re-checks should be carried out.

        The store keeper should ask a superior for the latter. Records should show:                 

        The present current stock – for the company to know what is in stock                 & so when it comes to stock taking there                 won’t be any problems.

        Stock Description -         to be able to distinguish one item from                 another. Usually stock is in number                         format with a barcode or item number.

        The Re-order level -         for the company to be aware that it is in-                need of ordering new stock.

        The Re-order quantity -         the amount that the company usually                         orders when the re-order level is reached

        The Expiry date -         so the company would not finish with old                 stock in the stock rooms without selling it                 before it expires. Usually companies                         offer a special offer on the item to attract                 customers to buy it.

        Etc…

        It is important for a company to keep such records because if not the company would not know what is going on with its stock, thus causing disadvantages for the company. These disadvantages are:

  • Disadvantages of holding too much stock

        - Buying too much cost can be an expense to the company. If the         stock bought is extra and not going to be in use then that money spent         could have been put to better use.

        - When too much stock is held, then the stock might expire or         deteriorate thus having to sell it at a cheaper         price or having to         dispose of it.

        - Extra stock takes up space, thus the company might need a bigger         warehouse which is cost effective.

 

  • Disadvantages of holding too little stock

        - If the company holds too little stock then customer will be         dissatisfied if they go to shop ad would not find the product wanted         on the shelves and thus the company would be losing customers.

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        - if the manufacturing company from were you import is out of stock         of a specific product then it can also cause your company a         disadvantage or also cause it to a halt.

Stock Levels

        Stock levels are set to determine when one should re-order. Raw material, work in progress and finished goods make- up stock.

        Good control and stogie is imperative.

Storage

  • Storage is important since stocks are not delivered on demand.

  • Having stock flowing is important to meet customer’s demand

  • Stocks are also important to reduce the risk ...

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