Stock Control - application and evaluation

When a stock control situation is presented in an examination, it is likely to be in the context of a business that is facing change.

Candidates need to interpret and apply stock control principles to the particular situation, and make practical suggestions to help address the question.

Examples might include:

• A business that is growing will need to review its re-order and buffer stock levels, and the frequency and size of orders
• Look out for seasonality in a business; larger or more frequent orders may be needed in busy times
• If the supplier is having trouble supplying goods on time, the firm might need to re-order at an earlier point (or seek a new supplier!)
• Does the firm have a back-up supplier in case of delays?
• Could small additional orders be made with a supplier as a stop gap if the firm’s stock runs out suddenly? 

Note - these orders would be more expensive because of extra transport costs and lower discount level