2.4.3 - Stock Control (USE GOOGLEDOCS FOR DIAGRAM)

Question 1

Define Stock Control

Answer 1

the Processes and Controls a Business Uses to Ensure it has Sufficient Stock For it’s Purposes

Question 2

Interpretation of Stock Control Diagram - explain Maximum Level and Reorder Level

Answer 2

MAXIMUM LEVEL - Max amount of Stock a Business Wants to Hold

REORDER LEVEL - acts as a Trigger Point, so that When Stock Falls to this Level, the Next Supplier Order Should be Placed

Question 3

Interpretation of Stock Control Diagram - Lead Time and Buffer Stock

Answer 3

LEAD TIME - amount of Time Between Placing Order and Receiving the Stock

BUFFER STOCK - amount of Stock Held As a Contingency Incase of any Unexpected Orders so that Such Order can be Met Incase of any Delays from Suppliers