Observation

(a)        Candidates only have knowledge of stock but they could not relate it with store
management as required by the examiner.

Stock control is the process of ensuring that the stock held by the organization is supplied to those parts of the operation that require items bearing in mind the factors of time, location, quality, quantity and cost.

(b)        Importance of stock control
-           It serves customers efficiently by stocking adequate levels of products that customers want.
-           It minimizes losses in terms administrative workload.
-           It helps to prevent production stoppage.
-           It prevents shortages of needed materials.
-           It ensures up-to-date stock records.
-           It ensures security of materials in the store at all times.
-           It reduces the money held up in stocks.

(c)        Explanatory on inventory terms

(i)         Minimum stock level: this is the minimum quantity of a material that must be kept in the store at all times. The stock should not be allowed to fall below this level in order to prevent interruption in production or loss of customers. It is also called safety stock.
(ii)        Just in Time (JIT): this is a system that keeps inventory levels low by only producing for specific customer orders. It ensures that there is reduced need for raw materials and work-in-progress, while the inventory of finished goods is close to non-existence.