Business Studies Recap Day 30 - Inventory Stock Control Charts
On day 30 of the year 12 recap we look at how a business can improve the management of its stock via an inventory control chart.
The inventories of a business describe the basic stockpiles of intermediary goods, raw materials and reserves that a business may hold back from selling to the wider market. When a business stores inventories it needs a physical location to place these stockpiles in and this can often be a costly process. Therefore, to minimise these storage costs, businesses are encouraged to manage and control their inventories to ensure that they hold only the necessary amount of stock to meet the business’s needs. The amount that needs to be held will depend on the strategy of the business and the dynamics of the industry that it operates in.
Here Jack guides you through the inventory control charts revision slide: