Outline the concept of stock/inventory:
(2)
Question 2
Explain the need for stock control with reference to Carelessness and Ensuring sufficient stock, Give examples from your own business unit. (6)
Carelessness
Ensuring sufficient stock
Question 3
Outline the importance of price and source in managing stock, giving examples from your own business unit
(4)
Price
Source
Stock/inventory refers to the goods or materials a business holds for the purpose of resale or production. These items are crucial for a business to operate efficiently and meet customer demand.
Question 2
The need for stock control is essential in a business to prevent carelessness and ensure there is sufficient stock on hand. Carelessness can lead to errors in stock management, such as miscounting items or mishandling goods, which can result in loss of revenue or customer dissatisfaction. Ensuring sufficient stock is important to avoid stockouts and meet customer demand in a timely manner. For example, in a retail store, if there is not enough stock of popular items, customers may go elsewhere to find what they need.
Question 3
Price is an important factor in managing stock as it directly affects the profitability of a business. Effective pricing strategies can help optimize stock levels and maximize profit margins. The source of stock is also crucial as it can impact the quality and availability of goods. For example, sourcing products from reliable suppliers at competitive prices can help a business maintain a competitive edge in the market. In my own business unit, we regularly review pricing strategies and sources of stock to ensure we are meeting customer demand and operating cost-effectively.