Stock (Control) – GCSE Business Studies Revision

Types of Stock

  • Stocks of (raw) materials the business has bought
  • Stocks of half-finished products the business is manufacturing
  • Stocks of finished products that haven’t been sold yet

Stock Levels

  • Maximum Stock Level: The largest amount the business can hold
  • Re-order level: The business buys more when it reaches this stock level
  • Minimum Stock Level: The lowest amount the business wants to hold at a time (AKA Buffer Stock Level)

J.I.T. Stock Control

  • A way of managing stock which means you don’t have to pay for much storage space
  • Stock is only delivered when the production system needs it
  • No stocks are kept very long – they are used right away
  • It can work out quite cheaply, because you don’t have to rent a massive warehouse
  • Holding only a small amount of stock at once has its risks – what if there’s a sudden surge in demand, or a delivery never arrives? You have no stock!
  • Ordering only a small amount at once also means you don’t get to make massive orders and receive bulk discounts
  • J.I.T. stands for Just In Time
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About Matt

I like writing, filmmaking, programming and gaming, and prefer creating media to consuming it. On the topic of consumption, I'm also a big fan of eating.
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