Stock Management Methods Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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What does stock mean in business?

The goods and materials a firm holds to use or sell.

Name three types of stock.

Raw materials, work-in-progress, and finished goods.

What is stock control?

Checking and planning stock levels so there is enough to meet demand without waste.

What is buffer stock?

Extra stock kept as safety to avoid running out if demand or deliveries change.

What is the reorder level?

The stock level at which the business places a new order.

What is lead time in stock management?

The time from placing an order to when the stock arrives.

What is a reorder quantity?

The number of units ordered each time to top up stock.

What is a maximum stock level?

The highest amount of stock a firm wants to hold to avoid high costs and waste.

What problems can too much stock cause?

Higher storage costs, risk of damage or waste, and cash tied up.

What problems can too little stock cause?

Running out of stock, lost sales, and production stoppages.

What is stock rotation (FIFO) and why is it used?

Using or selling older stock first to cut waste and keep products fresh.

What is a stock check and why do businesses do it?

A count of items in stock. It finds errors, damage, or theft and keeps records accurate.