Page 102 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 6: Stock Management

make orders Notes
issue stock
The simplest manual system is the stock book, which suits small businesses with few stock
items. It enables you to keep a log of stock received and stock issued. It can be used alongside a
simple re-order system.

Example: The two-bin system works by having two containers of stock items. When one
is empty, it’s time to start using the second bin and order more stock to fill up the empty one.

Stock cards are used for more complex systems. Each type of stock has an associated card, with
information such as:

description
value
location
re-order levels, quantities and lead times (if this method is used)

supplier details
information about past stock history
More sophisticated manual systems incorporate coding to classify items. Codes might indicate
the value of the stock, its location and which batch it is from, which is useful for quality control.

Lab Exercise Go to website http://www.gliquality.org/activity/prepare-stock-cards-each-
stock-item-either-paper-or-electronically and gather more information on Preparing stock
cards for each stock item (either on paper or electronically).

6.3.1 Stock Control Systems – Keeping Track Using Computer Software

Computerised stock control systems run on similar principles to manual ones, but are more
flexible and information is easier to retrieve. You can quickly get a stock valuation or find out
how well a particular item of stock is moving.
A computerized system is a good option for businesses dealing with many different types of
stock. Other useful features include:

Stock and pricing data integrating with accounting and invoicing systems. All the systems
draw on the same set of data, so you only have to input the data once.

Sales Order Processing and Purchase Order Processing can be integrated in the system so
that stock balances and statistics are automatically updated as orders are processed.
Automatic stock monitoring, triggering orders when the re-order level is reached.
Automatic batch control if you produce goods in batches.

Identifying the cheapest and fastest suppliers.
Bar coding systems which speed up processing and recording. The software will print and
read bar codes from your computer.
Radio Frequency Identification (RFID) which enables individual products or components
to be tracked throughout the supply chain.

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