Chapter Name: Manage stock levels
Description:This chapter focuses on techniques for monitoring, maintaining, and optimizing stock levels, including inventory tracking and reordering.
Purpuse:To provide businesses with the tools to maintain the right balance of stock to meet customer demand without overstocking or running out of products.
Rational:Proper stock management helps prevent stockouts and overstocking, reducing costs, improving cash flow, and enhancing customer satisfaction by ensuring product availability.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: Determine the stock turnaround time based on sales volumes/ frequency
Calculate how quickly stock sells and needs replacing.
Key Requirement 2: Perform on-going monitoring of stock levels in relation to sales (usage)
Check how stock levels match with actual sales over time.
Key Requirement 3: Perform the necessary activities to minimise shrinkage and losses
Prevent theft, waste, and damage to goods.
Key Requirement 4: Monitor stock expiry date and check for outdated stock, where applicable
Identify and remove expired or near-expiry items.
Key Requirement 5: Do stock taking and take corrective action to address any discrepancies and variances
Count physical stock and correct errors in records.
Key Requirement 6: Manage inventory to maintain stock records
Keep updated, accurate stock records at all times.
Key Requirement 7: Determine when goods should be procured based on stock levels. Or inform/ trigger the procurement function.
Decide the right time to reorder or notify procurement staff.
Assessment Questions
Assessment 1 : The stock turnaround time is determined based on sales volumes/ frequency
The stock turnaround time is determined based on sales volumes/ frequency
Assessment 2 : On-going monitoring of stock levels is performed in relation to sales or usage
On-going monitoring of stock levels is performed in relation to sales or usage
Assessment 3 : The necessary activities that are aimed at minimising shrinkage and losses are performed
The necessary activities that are aimed at minimising shrinkage and losses are performed
Assessment 4 : Stock expiry date is monitored and checks are conducted to identify outdated stock, where applicable
Stock expiry date is monitored and checks are conducted to identify outdated stock, where applicable
Assessment 5 : Stock taking is done and corrective action is taken to address any discrepancies and variances
Stock taking is done and corrective action is taken to address any discrepancies and variances
Assessment 6 : Inventory is managed to maintain stock records
Inventory is managed to maintain stock records
Assessment 7 : A decision is made about when goods should be procured based on stock levels. Or The procurement function is informed or triggered
A decision is made about when goods should be procured based on stock levels. Or The procurement function is informed or triggered