Stock Control

Question 1

Stock control

Answer 1

The process of ensuring that appropriate amounts of stock are maintained by a business, so that they can meet customer demand without delay while keeping the costs assocaiated with holding stock to a minimum.

Question 2

Raw materials

Answer 2

Stock that includes all the raw materials or components that are needed to produce a finished good.

Question 3

Work in progress

Answer 3

Raw materials and components are partially assembled or to produce the final product

Question 4

Finished goods

Answer 4

Completed product that has yet to be delivered to the consumer. Some products are stored then delivered.

Question 5

Minimum stock level

Answer 5

Minimum amount a business would want to hold in stock assuming that is more than 0 (buffer stock)

Question 6

Maximum level

Answer 6

Max level of stock a business would want to hold

Question 7

Re-order level

Answer 7

Trigger point, when stock hits this the next supplier order should very placed

Question 8

Average stock level =

Answer 8

Maximum stock level plus minimum stock level divided by 2