- What should our average stick levels be
- How often will there be shortages in our stock
- What service levels do we offer
Thursday, 15 August 2013
Inventory Control Part Four
The question we are answering today regarding inventory control is “How much stock should we order?”
With each order that is placed there are costs associated to it such as delivery and administration. When large orders are made by the company the costs may be kept to a low level but the values placed on stock levels and inventory can be high. Small orders have higher delivery and orders costs yet the stock level is lower. Therefore inventory managers need to find a comfortable level between these two extremes with t he aim of reducing all the costs.
You can do this by asking three additional questions