Stock Control

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Stock Control

• Part of controlling operations

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What is Stock???

• What stock would you expect to see in a
• Library?
• Doctor surgery?
• The Ashcombe school?
• Guinness?

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Answers.
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All the stock needed
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What are the costs of holding stock?

• Warehouse costs
• Staffing cost
• Depreciation costs
• Insurance costs
• Opportunity costs

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Inefficient stock ordering!

• What could be meant INEFFICIENT stock ordering?

Ordering too much!
Ordering not enough!
Ordering the wrong stuff!
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Too much!
Whats wrong with having too much stock?
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Too little?
Whats wrong with having too little stock?
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Your notes.

• Title Stock control
• In your own words explain what is meant by
  stock..
• What are the costs of holding stock?
• Identify issues that could occur with inefficient
  ordering of stock (too much, too little or the
  wrong stock)

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What should a Purchasing manager aims be when
purchasing stock?

• Order sufficient quantity
• Avoid too much waste
• Order the right quality
• Get competitive prices
• Build good relations with supplier (s)

In your notes justify each of these aims
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Stock order strategies

• Order in bulk occasionally or small orders
  frequently?
• Order low or high quality materials?
• Use one supplier regularly or shop around?

• What would you do if you were a Stock Manager
  for
• Tesco?
• Local butcher?
• Guinness?
• Wedding dress designer?

What are the issues for analysis here?
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3 Different Types of Stock

• Raw material and components
• Work in Progress
• Finished goods

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3 different types of stock at Aardman Animation

• Raw Materials

• Work in Progress
• Finished goods

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3 different types of stock at a bakers

• Work in Progress
• Finished goods

• Raw Materials

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3 Different Types of Stock

• Raw material and components
• Work in Progress
• Finished goods

Write a brief explanation of each type, using
examples of your own.
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Stock Management

• This is the way in which a business controls the
  stock held in the business
• Stock Rotation use oldest stock 1st!
• Stock Wastage avoidance.

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Stock Rotation.

• How can a business ensure that this happens?
• Supermarket?
• Bakers?
• Aardman animation?

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Stock wastage avoidance

• How can a business prevent materials being
  wasted?
• Supermarket fruit? Tins? Bread? Frozen food?

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How to reduce stock waste

• CAD.
• Make mend .(Top Shop video)
• Staff training
• Sell off defective goods. Seconds
• ICT machinery (does this guarantee 100
  accuracy?) (Wedgewood video)

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HOMEWORK

• Select a product of your choice and investigate
  what stock is needed in the production.
• I typed in how its made into search engine.
  I found sheep poo paper! No joke. See images!

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Next lesson

• Youll need
• Pencil
• Ruler
• Eraser!
• Were drawing diagrams!