List and explain types of stock levels

      

List and explain types of stock levels

  

Answers


Ruth
i) Maximum stock levels;
This is the largest amount that a store can hold in a given period.
ii) Re-order stock level; it is the level at which when stock reaches then a new order has to be
placed. This is the level at which an order has to be placed for replenishment.
iii) Minimum stock level; this is the lowest amount of stock that a store can hold in a given a period
of time.
iv) Economic order quantity; it is the economic amount to be purchased in a given period and it
varies from one item to the other.
v) Re-order quantity; this is the quantity for which a replenishment order is placed. The quantity is
influenced by such factors as cost of ordering, seasonality or otherwise, of the availability of
stock items, credit terms allowed by the supplier.
vii) Average stock level; this is the midpoint between the maximum stock level and the minimum
stock level and represents the average investment in stock of that particular item throughout the
year though at any given time stock level may be higher or lower than this mark.
viii)Buffer or safety stock; it is the minimum stock which will always exist if purchasing goes
according to plan.
NatalieR answered the question on May 16, 2022 at 08:19


Next: Explain two levels of stocking and for each highlight its dangers
Previous: £ 2900 of food purchased was consumed in a 28 days trading period. The opening stock on day 1 was valued at £750; the closing stock...

View More Food and Beverage Control Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions