2. Stock management
• This is a strategic decision that controls the level of investment
on stock, show how much of stock you have at any point in
time and keep track of it.
Objectives:
• To maintain adequate stocks
• To avoid excess stock level
• Procurement decisions.
Motive for holding stock
• Transaction motive
• Precautionary motive
• Speculative motive
3. Importance of stock management
• To guard against
Pilferage
Minimise stock out
Striking a balance between too much inventory and little
inventory.
Establishing minimum level
Factors affecting amount of stock available
• Storage space
• Cash
• Storage cost
• Risk of obsolescence
• Delivery delays
Methods of controlling stock level
• Just in time ,EOQ, FIFO, Minimum level, stock review
4. Management of frames, drugs and
lenses.
FRAMES
To maintain a balance between too little inventory and too
much inventory
• Learn your demographics
• Determine your mix
• Lens considerations
• Getting the best deals
• Frames categories
• How much of inventory
• Value vs price
• A robust information system
