Stock Management Quiz T.3

T.3: Stock Management

• Stock: Raw materials, work-in-progress, finished goods. Located in warehouses or on factory floors.
• Importance of Stock Management: Ensures constant production flow, prevents delays, and avoids running out of critical products.
• Stock Levels: Maintaining the right stock level is crucial to prevent shortages and excess inventory costs.
• Demand Forecasting: Accurately predicting future demand is essential to avoid significant stock shortages. Forecasting methods include analyzing past sales patterns.
• Methods for Managing Stock: Methods like ABC analysis (categorizing items by value), first-in, first-out (FIFO), and last-in, first-out (LIFO) are used. Stock control involves constantly monitoring stock levels.
• Stock Control Systems: Systems can include real-time inventory tracking, automated alerts, and regular stock-take activities.
• Stock Shortages and Surplus: Understanding the causes of stock shortages (e.g., high demand, supply chain issues) and surplus (e.g., slow-moving products, overstocking) is needed.
• Quality Control: Ensuring stock quality is crucial.
• External Factors: Economic conditions, competitor actions, and market trends affect stock management.
• Warehousing: Effective warehouse management is critical to storing and retrieving stock efficiently.
• Inventory Accuracy: Accurate inventory records prevent discrepancies between the recorded and actual stock levels.
• Product Categorization: Categorization by product lifecycle or other factors enhances focus.
• Seasonal Variation: Demand can fluctuate with seasons, and stock levels need adjustment.
• Supplier Relationship Management: Smooth communication and trust with suppliers prevent delays.

Stock Types

• Perishable: Spoils. Manage tightly to prevent waste.
• Non-Perishable: Doesn't spoil.

Other factors affecting Inventory

• External Factors: includes market, seasonality, and competition
• Internal Factors: Company policies, production, and storage facilities

Applications

• Commercial: Products sold directly to consumers.
• Industrial: Raw materials and components for production.
• Services: Stock management applies to service industries, too.