Inventory, Stock Control and Store Keeping
Control concepts
Inventory control balances availability against excess stock. Learn reorder level, safety stock, lead time, stock turnover, shrinkage and ABC analysis. A items are high value and need tight control; C items need simpler checks. Use perpetual records for continuous balances and periodic counts for verification. FIFO and FEFO protect quality.
Receiving and storage
Verify the purchase order, quantity, condition, batch and expiry. Record a goods received note and update the bin card. Store in clean, dry, pest-free areas, with heavy items low and labels visible. Investigate every variance.
Worked example
Average daily sales are 20 units, lead time is 5 days and safety stock is 30 units. Reorder level = 20 × 5 + 30 = 130 units. If stock is 110 units, the store has already fallen below the reorder level and should order at least 20 units plus a review allowance.
Traps
Counting damaged or expired stock as saleable, mixing batches, trusting one person's count and ignoring shrinkage inflate the books. Do not order only on price; check shelf life and storage capacity.