Page 99 - DMGT553_RETAIL_STORE_MANAGEMENT

Retail Store Management

Notes There are four main types of stock:

Raw Materials and Components

Ask yourself some key questions to help decide how much stock you should keep:
How reliable is the supply and are alternative sources available?
Are the components produced or delivered in batches?

Can you predict demand?
Is the price steady?
Are there discounts if you buy in bulk?

Work in Progress – Stocks of Unfinished Goods

Keeping stocks of unfinished goods can be a useful way to protect production if there are
problems down the line with other supplies.

Finished Goods Ready for Sale

You might keep stocks of finished goods when:

demand is certain
goods are produced in batches
you are completing a large order

Consumables

The examples of consumables include fuel and stationery. How much stock you keep will
depend on factors such as:
reliability of supply
expectations of price rises

how steady demand is
discounts for buying in bulk

Self Assessment

Fill in the blanks:
1. Retail Stock refers to the goods stocked for ..................... use.
2. Every retail chain has its own warehouse to stock the merchandise to be used when the
existing stock .....................
3. Retail Stock management refers to the storage of products to be used at the time of
.....................
4. The retailer must have sufficient stock to offer to the customers during the “.....................”.
5. Managing Retail Stock also helps the retailer during situations ..................... control like
transport strikes, curfews etc.

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