Stock control methods
There are several method for controlling stock, all designed to provide an efficient system for deciding wha, when and how much to order. You may opt for one method or two or more if you have various types of stock. * Minimum stock level - you identify a minimum stock level, and re-order when stock reaches that level. This is known as the just in time methd. * Stock reviw - you have regular reviews of stock. At every review you place an order to return stocks to a predetermined level. Just In Time (JIT) - this aim to reduce cost by cutting stock to a minimum. Items are deliverd when they are needed for immediate use. This means that less storage is needed however there is risk of running out of stock, so you need to be confident that your suppliers can deliver on demand. Stock control systems - keeping track manually
Stocktaking involves making an inventory, or list, of stock, and noting its locatin and value. It's often an annual exercise - a kind of audit to work out the value of the stock as part of the accounting process. Codes, including barcodes, can make the whole process much easier but it can still be quite time-consuming. Checking stock more frequently - a rolling stocktake - avoids a massive annual exercise, but demands constant attention throughout the year. Radio Frequency Identificaton (RFID) tagging using hand-held readers can offer a simple and efficiet way to maintain a continuous check on inventory. Any stock control system must enable you to: * track stock levels
* make orders
* issue stock
The simplest manual system is the stock book, whic suits small businesses with few stock items. It enables you to keep a log of stock received and stock issued. It can be used alongside a simple re-order system. For example, the two-bin system works by having two containers of stock items. When one is empty, it's time to start using the second bin and order more stock to fill up the empty one. Stock cards...
Please join StudyMode to read the full document