Inventory Management: Stock Breaks and Turnover Analysis
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Stock Break
The stock break occurs when existing stocks are insufficient to cover ordinary consumption needs. There are two variants:
- Low stock fulfilled: This indicates that the current stock has proven insufficient.
- Low stocks reached: Low stocks have reached the established minimum level.
In the first case, the low stock level is outdated, and the company must study the current situation and its needs to determine a new minimum stock level. In the second case, provisioning has been carried out, and it is necessary to determine why the established low levels were not respected.
Store managers often prepare monthly stock break reports containing the following data:
- Date of the report
- Report name and product code
- Product description
- Material stock unit