other managing stock

• Stock

  The Store of Raw Materials, Work-in-Progress or Finished Goods
• Businesses

  • Try to minimise the level of stock they're holding because of the costs involved
  • The maximum level of stock a business wants to hold usually depends on the size of their warehouses or stockrooms
  • The maximum level of stock a business wants to hold usually depends on opportunity cost
  • The maximum level of stock a business wants to hold usually depends on their production method
• Production methods

  1. Flow production needs a large stock of raw materials

  2. Batch production leads to large stocks of work-in-progress

  3. Job production often means there is no stock of finished goods to be stored

  4. Cell production usually relies on just-in-time stock control
• Buffer stock


  The minimum level of stock a business needs so that it won't run out of raw materials or finished goods
• Lead time is the time it takes for goods to arrive after ordering it from suppliers
• Stock control diagrams help managers analyse and control stock over time