Page 25 - 8025 - Controlling and locating stock Learner Guide.docx

ADVANCED

RISK MA
Subtotal R
Vat 14% R

Nett Total R

Delivery Date: Buyer Name:

Delivery Instructions
Buyer Signature:

Authorized Signature:

Reorder Level
The re-order level is the level of stock when you need to make sure that replenishment stock has
been ordered. There are a number of factors that can influence the level of the re-order level. These
include:
 The time it takes for stock to arrive from the supplier – especially overseas suppliers

 The demand for the stock items

 The length of time that stock items can be stored. Some items might become obsolete or
reach their expiry date.

If the re-order level is too low, stock may run out before it can be replenished.

Internal Replenishment
In a similar way in which the warehouse can run out of stock, picking slots can also run out. The store
person’s role is to ensure that picking areas are maintained with sufficient stock to allow picking to
occur without disruption.
Accurate records of the quantities of items that are picked must be made to ensure that levels of
stock in picking areas can be correctly monitored.

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