What are efficient ways of maintaining stock levels within a business?
Posted by admin in Finance Friday, 8 April 2011 05:29 4 Comments
Hi, in one of my assignments it asks “What would be the most efficient way of maintaining stock levels, ensuring correct storage and ordering of products?”
Any ideas?
there are so many possible answers to this question because it depends on what type of stock, what type of business, and all that jazz.
It sounds like this question is asking you to regurgitate something from the text or lecture notes. My suggestion is to go back and read until you find the “answer” they are looking for.
Most of this work is now done on computers, with a dedicated computer stock controller. Used properly, computers will `rotate` the stock more efficiently than anything. With a few click, you can see everything about your stock: how much and what you have in stock: how old it is: what has recently `gone out` and what has come in (fresh). And where it is stored/located.
Any `missing` stock can usually be easily traced too.
Great if anyone is `pinching` your stock!
Are we talking beef stock or vegetable stock. Don’t add too much salt.
Estimate the monthly or weekly sales volume for that item or category.
Adjust for seasonal fluctuations like July 4th or Back-to-school.
Calculate the costs of carrying ONE INCREMENT too much vs the cost of stock ONE INCREMENT too little.
The optimum is the equilibrium where overstocking costs the same as understocking.
- CD