Page 12 - 8025 - Controlling and locating stock Learner Guide.docx

ADVANCED

RISK MA
SECTION 1: RECORD AND REPLENISH STOCK

Specific Outcome 1
Record the appropriate information regarding stock.

Outcome Note:
Record the appropriate information about stock, (including quality, quantity, discrepancies, location,
destination, receipt and despatch), using an appropriate recording system

Assessment Criteria

 Information that is needed when transporting stock is recorded in accordance with laid-down
company policies and procedures.

 The procedures for ordering, and for the recording of stock, are explained according to type,
product, weight, and value, in line with company policies and procedures.
 Information on recording processes are available to provide the most recent recording
information

Specific Outcome 3
Replenish of or adding to stock

Outcome Notes:
Replenish of or adding to stock levels, with due regard to client requirements and available resources
(e.g. lifting equipment, supplier commitments, product differentiation).

Assessment Criteria

 Stock and inventory levels are recorded and reported with minimal disruption to transport
and warehouse operations.

 An inventory control form is completed according to organisational requirements
 Documentation to replenish stock is completed according to organisational requirements.

The reasons for keeping stock

There are three basic reasons for keeping an inventory:
1. Time - The time lags present in the supply chain, from supplier to user at every stage, requires
that you maintain certain amount of inventory to use in this "lead time". By keeping stock, the
shop has products to sell to customers immediately, the customer then does not wait for the
goods to be delivered.
2. Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and
movements of goods. For example, if a strike by lorry drivers is imminent, retailers, wholesalers
and other organisations will increase their stock levels to make sure that they do not run out of
stock. This is also true of impending price increases.

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