Powered by Leeds Metropolitan University
Business Studies Resources Popular resources on the {my channel} blog Resource tags for the blog RSS Feed for the blog Twitter feed for this blog Teacher Email Resource Newsletter Category listing for this blog

Stock control - other aspects

Author: Jim Riley  Last updated: Sunday 23 September, 2012

Stock-taking

A simple approach to checking the level of stock in a business is to count it on the shelves – this is called stock-taking. For many businesses, such as a small shop, this is a thoroughly practical approach. Most businesses conduct an ‘annual stock take’ when stocks are checked in considerable detail to find any discrepancies between what is physically and the stock records. This is also a good time to check for any obsolete or out of date stock that needs to be disposed of.

Stock rotation

Most businesses try to use up older stock first to help avoid stock deterioration or becoming obsolete – this is known as stockrotation. You have probably noticed that supermarkets always load the freshest stock to the back of the shelves.

Computerised stock control

Large businesses such as the major retailers use computerised systems to manage stocks of tens of thousands of items, some of which are replenished several times a day. As stock arrives, and again as it is sold, scanning of bar codes keeps the levels up to date.

Automatic re-ordering of stock

As bar codes on products are scanned at the checkout, the system is taking those sales into account as part of a program to re-order stock. Rather than manual stock-taking by counting product on the shelves or in the warehouse, the supermarket has detailed real-time stock level information that the system uses to place re-orders through EDI (Electronic Data Interchange).

Information such as weather forecasts, public holidays and major sporting events can be used to help determine the stock level of seasonal products – such as beer, ice cream and food for barbecues. Huge amounts of data are available from sales around the country to help determine what stock to have in place on different days of the week and even at different times of the day.

The major supermarkets such as Tesco have developed stock management as one of their core competencies and derive competitive advantage from having the right stocks on the shelves when customers want them.

Just-in-time (JIT) stock control

JIT stock control means that stock is only ordered to meet specific orders, and little or no product is held in stock. This requires very responsive and reliable suppliers who can meet stringent requirements to deliver exactly the right stock to a precise location and within a narrow time frame. See the revision notes on Lean Production for more details of JIT.




Add your comments and share this study note:

blog comments powered by Disqus

 

Search tutor2u






Order by 


Related study notes

 


TBBLE - the Best Business Lesson Ever 2013

tutor2u

Tutor2u support for students
Teaching support and resources
Search for resources on tutor2u

Law



Refine Search by Subject
A Level Economics
Business Studies
Geography Give It A Go!
History Law
IB Diploma Politics
Religious Studies Sociology

Order Search Results By


Follow tutor2u on Twitter
   
   

tutor2u Home Page | Online Store | About tutor2u | Copyright Info | Your Privacy | Terms of Use

tutor2u

Working with Our Partners

 Zondle - Games for LearningVue Cinemas | Moneypenny | Nexcess | Really Simple Systems 

Boston House | 214 High Street | Boston Spa | West Yorkshire | LS23 6AD | Tel +44 0844 800 0085 | Fax +44 01937 529236

Company Registration Number: 04489574 | VAT Reg No 816865400

tutor2u is proud to sponsor TABS Cricket Club and the Wetherby Cricket League as part of its commitment to invest in local junior sport