types of stock
- raw materials
- semi finished goods
- finished good
stock control chart → VISUAL TOOL to help monitor and analyse a firm’s STOCK levels
- rate of stock consumption,
MAXIMUM STOCK LEVEL
BUFFER STOCK
REORDER LEVEL - how much inventory before you want to reorder
REORDER QUANTITY
USAGE RATE
LEAD TIME - time between ordering and receiving inventory
stockpiling order more than you need in case something goes BOOM
stock-out: when a firm has no more stock for production/sales ⇒ BOOM
stock chart is hard since in reality nothing goes to plan
