Stock and Inventory Management
This domain tests the paperwork and numbers behind the store: stock levels, receiving, storage conditions, records and how variance is found and explained.
Stock levels
- Maximum stock: what the store can physically and financially hold.
- Minimum (safety) stock: the buffer covering a late delivery.
- Reorder level = average usage during lead time + safety stock.
- Par stock: the level a bar or kitchen holds to serve expected demand between deliveries.
- Stock turnover = cost of goods sold ÷ average stock value; a low turnover means capital tied up and spoilage risk.
Receiving and documents
Check quantity, quality, temperature and dates against the purchase order before signing the goods received note. A short delivery or price change needs a credit note. Inside the store the bin card records every receipt and issue per item; the requisition authorises issues, and a transfer note moves stock between departments.
Storage conditions
Dry store 10-21 °C, well ventilated, stock off the floor; chilled 1-5 °C; frozen −18 °C or colder. Apply FIFO/FEFO on every shelf, dates facing out, and never store chemicals near food.
Worked example. A bar uses 6 bottles of gin a week; the supplier takes 4 days, about 0.57 of a week, and the manager keeps one week of safety stock. Reasoning: usage during lead time ≈ 6 × 0.57 ≈ 3.5 bottles; reorder level ≈ 3.5 + 6 ≈ 9.5, so order when stock falls to 10 bottles.
Traps
Signing for a delivery without checking it; using purchase price instead of stock value; ignoring slow-moving items until they expire; confusing a bin card with an invoice; investigating a stocktake variance only in total rather than by item.