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Stock control systems - keeping track manually Stock is identified by date received and moves on through each stage of production in strict order. In effect, you're placing a standing order, so you need to keep the quantities and prices under review.įirst in, first out - a system to ensure that perishable stock is used efficiently so that it doesn't deteriorate. If your needs are predictable, you may order a fixed quantity of stock every time you place an order, or order at a fixed interval - say every week or month. You need to make sure that you have the right number of components to cover your needs until the next batch. It's quite a complex calculation, so you may find it easier to use stock control software.īatch control - managing the production of goods in batches. Re-order lead time - allows for the time between placing an order and receiving it.Įconomic Order Quantity (EOQ) - a standard formula used to arrive at a balance between holding too much or too little stock. These methods can be used alongside other processes to refine the stock control system. There is a risk of running out of stock, so you need to be confident that your suppliers can deliver on demand. Items are delivered when they are needed and used immediately. Just In Time (JIT) - this aims to reduce costs by cutting stock to a minimum. At every review you place an order to return stocks to a predetermined level.