1. Stock Control
What you need to know!

2. Stock control in Business
All businesses need enough stock to keep the production line working
This means they can satisfy customers’ needs

3. Too much stock! Could be damaged Could deteriorate
Money is tied up in goods
Could cause cash flow problems
Called overstocking

4. Not enough stock! Too little stock means the production line stops
So set minimum stock level so least amount needed is always available
Need to allow time for goods to arrive – called lead time
Set re-order level so that minimum stock level is never met
Maximum stock level set to keep costs down – enough but not too much

5. Managing stock levels

6. Understanding the graph
Maximum amount that can be stored is 700 boxes
Production would stop if there were less than 200 boxes
Suppliers take 6 days to deliver
Set reorder level to 400 boxes

7. Question 1
Does the business need to monitor every line of stock?

8. Question 2
What happens with stock control for seasonal goods like Halloween items?