Stock Control – application and evaluation
Candidates need to interpret and apply stock control principles to the particular situation, and make practical suggestions to help address the question.
Examples might include:
- A business that is growing will need to review its re-order and buffer stock levels, and the frequency and size of orders
- Look out for seasonality in a business; larger or more frequent orders may be needed in busy times
- If the supplier is having trouble supplying goods on time, the firm might need to re-order at an earlier point (or seek a new supplier!)
- Does the firm have a back-up supplier in case of delays?
- Could small additional orders be made with a supplier as a stop gap if the firm’s stock runs out suddenly?
Note – these orders would be more expensive because of extra transport costs and lower discount level