Stock Control Charts

• what does the vertical line show on a graph?


  a new delivery
• how is the depletion (usage) shown?


  depletion of stocks through usage or sales is represented by a sloping line. rate of depletion is shown by the gradient of the sloping line
• what is the re order quantity?


  quantity of stocks reordered
• what is the re order level?


  level of stocks that triggers another order of supplies from the supplier. determined by lead time
• under what conditions could a business hold very limited or no buffer stock?

  with stable conditions in the market and reliable suppliers its possible for firm to have no buffer stocks