The overall objective of stock control is to maintain stock levels to that the total costs of holding stocks is minimise. A popular method of implementing stock control is through the use of stock control charts and algorithms that automate the process.
An example of a traditional stock control chart is shown below:
The key parts of the stock control chart are:
Minimum stock level
Factors Affecting When / How Much Stock to Re-order
Lead-time from the supplier
Implications of running out (stock-outs)
Demand for the product
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