Stock Management - Mind Map

Every business has to maintain Stock. Stock are of three types:

• Raw materials
• Semi finished goods
• Finished goods

Stock management is of vital importance for a business because a there it costs the business to maintain stocks. These costs may be the opportunity cost, stock holding overheads, risk of obsolescence or wastage. Thus, every business strives to achieve an optimum stock level. Poor stock management may lead to blocking of working capital, disappointment for customers, high ordering cost per order, outdated stock and no discounts from suppliers. Different methods of stock management are available. Stock control charts are still the favorite but many large businesses are moving to Just In Time (JIT) stock management system. For detailed notes on Stock management. Click here Download Mind Map on Stock Management. Click here