Stock Control

Abstract

Stock tends to mean different things in different situations. In a factory it can mean a supply of raw materials waiting to be processed or it can mean a quantity of part-finished goods, or yet again it can mean the quantity of finished goods waiting to be sold. In the office of the factory it could mean the supply of stationery and office materials. In a warehouse the word ‘stock’ means the goods waiting to be sold to retailers while in a shop the word means the goods waiting to be sold to customers. Stock can refer to the number of goods held or to the value of goods held. When a business man talks of ‘turnover’ he means the total amount of goods he has sold in a period of time — usually a year. When he talks of ‘turnover’ he talks of the value of goods sold in that time. The rate of turnover refers to the number of times a business man sells his average value of stock. For example, if a business holds an average stock of £10 000 and has a rate of turnover of 12 the turnover for the year would be £10 000 × 12 −or£120000.