Managing stock

• Stock management helps businesses avoid stock-outs.


  True
• The Economic Order Quantity (EOQ) strategy calculates the optimal order quantity to balance ordering and holding costs
• Ineffective stock management leads to a higher risk of stock-outs
• Effective stock management strategies improve cash flow by freeing up capital tied up in excess inventory.


  True
• ABC Analysis categorizes inventory into groups based on value
• The Economic Order Quantity (EOQ) balances ordering and holding costs.
• Steps involved in effective stock management

  1️⃣ Develop stock management strategies

  2️⃣ Set and monitor stock levels

  3️⃣ Negotiate stock agreements with suppliers

  4️⃣ Track and analyze inventory data
• Match the benefit with the stock management activity:

  Setting Stock Levels ↔️ Determines optimal inventory

  Monitoring Stock Levels ↔️ Ensures stock levels match demand
• Negotiated stock agreements improve coordination and responsiveness to demand changes.
• What can analyzing inventory data identify in stock management?

  Slow-moving or obsolete stock
• Which stock management strategy involves ordering stock only as needed?

  Just-in-Time (JIT)
• What is the primary goal of setting stock levels in inventory management?

  Meet customer demand
• What does monitoring stock levels involve?

  Checking inventory and adjusting
• Why is negotiating stock agreements with suppliers important for effective stock management?

  Secures guaranteed supply
• What are the two main activities involved in managing inventory data?

  Tracking and analyzing
• Effective stock management improves cash flow by freeing up capital tied up in excess inventory.

  True
• Steps involved in optimizing stock management processes

  1️⃣ Inventory tracking

  2️⃣ Order quantities

  3️⃣ Storage and logistics

  4️⃣ Supplier agreements
• Holding too much stock incurs storage, insurance, and obsolescence costs
• Match the benefits with their corresponding actions:

  Meets customer demand ↔️ Avoids stock-outs

  Minimizes holding costs ↔️ Reduces obsolescence

  Improves cash flow ↔️ Frees up capital
• What does ABC Analysis categorize inventory into?

  High, medium, low value
• What are the costs associated with ineffective stock management?

  High storage and obsolescence
• Improving cash flow is a key benefit of effective stock management
• Minimizing holding costs is a key goal of stock management strategies.


  True
• ABC Analysis categorizes inventory into A, B, and C items based on their volume.

  False
• What is the purpose of setting stock levels in inventory management?

  Meet customer demand
• Why is negotiating stock agreements with suppliers important?

  Secure guaranteed supply
• What type of data is tracked in inventory management?

  Stock levels, sales, usage
• Avoiding stock-outs ensures the business can meet customer demand.
• The EOQ strategy calculates the optimal order quantity to balance ordering and holding costs.
• Setting stock levels involves determining the optimal amount of stock to meet customer demand
• Without negotiated stock agreements, businesses risk stock outs
• Tracking inventory data focuses on real-time monitoring
• What is the primary goal of the Just-in-Time (JIT) stock management strategy?

  Minimize holding costs
• What is the key objective of optimizing stock management processes?

  Improve efficiency
• What does stock management involve?

  Controlling inventory levels
• How does effective stock control improve cash flow?

  Frees up trapped capital
• Steps in implementing the Just-in-Time (JIT) stock management strategy:

  1️⃣ Order stock only as needed

  2️⃣ Minimize holding costs

  3️⃣ Meet immediate demand
• Stock management strategies help businesses meet customer demand and improve cash flow.

  True
• Match the stock management strategy with its description:

  Just-in-Time (JIT) ↔️ Orders stock as needed

  Economic Order Quantity (EOQ) ↔️ Calculates optimal order quantity

  ABC Analysis ↔️ Categorizes inventory by value
• What does EOQ stand for in inventory management?

  Economic Order Quantity