2.2.4: Introduction to stock control

Question 1

Explain why businesses keep stock

Answer 1

• They have buffer stock to make sure they have enough stock for a short period of time.
• They keep it to meet the demands of their costumers
• They keep stock to know how much stock to reorder

Question 2

What are the consequences of poor stock control?

Answer 2

• Cant meet demand; loss costumes; go elsewhere
• Bad reputation
• Too much waste; cost
• Storage costs; if stock hasn’t sold; haven’t got money coming into the business to buy more stock