stock control managment

1. STOCK
stock can referred as
Raw materials required for production of goods
Part finished goods - Goods in Progress
Finished goods
Stock management is the function of understanding the stock mix of a company and the different
demands on that stock.
(Stock mix is the combination of products a company sells or manufactures.)
The demands are influenced by both external and internal factors and are balanced by the creation of
Purchase order requests to keep supplies at a reasonable or prescribed level.
Why controlling?
A lot of money can be tied up
We are obliged to produce financial reports
It is the key to efficient customer service
Stock Control Systems
Fixed re-order stock level
The business decides the minimum level of stocks it can tolerate, and then re-orders before the stocks
reach this level. The exact timing will depend on lead time.

2. Advantage - it represents a routine for the firm and ensures that stocks are regularly supplemented.
Disadvantage - may well mean the level of stocks fluctuating quite a bit depending on the rate they are
used up. Inflexible as a system as well unless used very carefully
Supply Chain and management of it…
SUPPLY CHAIN is a network of
supplier,
manufacturing,
assembly,
distribution, and
logistics,
that work together to perform the functions of
procurement of materials,
transformation of these materials into intermediate and finished products, and the
distribution of these products to customers.
Supply chain managment is a systems approach to managing the entire flow of information, materials,
and services from raw materials suppliers through factories and warehouses to the end customer. (SCM
is different from SUPPLY MANAGEMENT which emphasizes only the buyer-supplier relationship.)
Supply chain management has emerged as the new key to productivity and competitiveness of
manufacturing and service enterprises.
Elements of SCM
The first refers to the ‘back-end functions’ such as:
Procurement
Manufacturing
Distribution
The second is called called the ‘front-end function’. This is where IT systems play a key role, for example
to
facilitate the back-end operations. Key technologies here include: EDI (for exchange of information
across different players in the supply chain)

3. Electronic payment protocols