Managing Stocks 2.1.4

Stock refers to goods purchased and awaiting use or produced and awaiting sale.

Stocks take the form of raw materials, work-in-progressed and finished goods.

Stock holding is costly and therefore it is second business to:

1) Keep smaller balances (just in the stocks)
2) Computerise ordering to improve efficiency
3) Improved stock control

This will cut down the spending on stock but may leave the firm vulnerable to stock out.