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The WebSmartIdeas aims to promote and disseminate good creative ideas to improve
society.
It's your money and it's capital. Would you get a better ROI using your capital elsewhere? Be careful, a depletion of stock may lose you more than the alternative gains.
Too little stock will lose you sales, lessen customer loyalty, raise internal frustrations etc. often leading to a poorer customer focus.
NEGATIVE SPIRAL.
Too much stock and you risk damage, theft, obsolescence and wastage, more so if you stock items that staff can use at home. Think about your stationery, to have employees with an attitude of, "there's plenty, don't worry, help yourself", is going to cost you a lot of money.
NEGATIVE SPIRAL.
Get the balance right:
| Simplicity: |
Easy for every staff member |
| Accuracy: |
Sources and uses/movements documented |
| Cost Effectiveness: |
Both in time and money |
| Maintainable: |
System needs staff support, forget a complicated
system |
Ordering costs/administration costs etc. are also a very obvious consideration when frequent ordering of small stock quantities is done to maintain a low stock level.
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