Page 296 - (DK) The Business Book

294

IF THE PIE’S NOT BIG

ENOUGH, MAKE A

BIGGER PIE

FULFILLING DEMAND

IN CONTEXT

FOCUS
Stock management
During peak periods, Stock is released to
KEY DATES demand exceeds supplement current
10,000 BCE Better farming current production. production.
techniques allow the creation
of surplus food. Grain is stored
for times of scarcity or trade.
4100–3800 BCE Early
Sumerian culture develops one
of the earliest writing systems If the pie’s not
in order to keep track of goods. big enough, make
a bigger pie.
1889 US statistician Herman
Hollerith invents the first
machine-read punch card.
Merchants who had previously
relied on handwritten notes
and stock counting can now
he success of a company may switch loyality and never return.
record complex data.
can depend in large part on Sales may never regain previous
1974 The scannable, modern T the effective management of levels, even after supply has been
bar code is introduced, its stock. Customer demand in most addressed, leading to lower profits.
revolutionizing the ability markets varies throughout the year.
to manage inventory. During busy periods, companies Types of stock
may not be able to produce enough Companies keep stock as an
2000s Inventory management
to satisfy consumers. If companies insurance policy—it enables them to
software programs can fail to match supply to demand, deal with sudden surges in sales or
instantly update databases potential buyers have to find a sudden drop in output. In addition
using bar-code readers. alternative suppliers and sales will to inventories of finished goods,
be lost. Additionally, once consumers manufacturers may hold stocks of
have tried out the opposition, they raw materials, to create parts of the