Stocks Management Concept
Stocks management is one of the organizations’ traditional functional areas and includes, on one side, stocks management of materials, raw materials and intermediate products (inputs) and, on the other hand, stocks management of merchandise and finished products (outputs). In both cases, the main goal is to balance between economical efficiency and avoid productive or commercial choke due to lack of stocks. Thus, inputs stocks management has as goal the supply of raw materials and materials to production or operations, without ruptures and simultaneously in an economically efficient manner, in order for this to be able to work without chokes. Outputs stocks management have as aim the supply of merchandise and finished product to the clients, also without ruptures or delivery delays and in an economically efficient manner.
The main variables to take into consideration in a good materials and raw materials stock management are the costs associated to each order, spoilage and the storage costs, savings associated to bigger quantity of acquisitions, the stability level of the production rhythm, the delivery times by the suppliers, the expectations as to the prices evolution of materials and raw materials and at last the own production policy (in the case that the company produces only on demand, the need of stocks is reduced). As to the stocks of merchandise and finished product, the main variables to take into account are the stability level and the rhythm of orders, spoilage and the storage costs and once again production policy (in the case that the company produces only on demand, the need of stocks is reduced).
Other activities that can be included in the stocks management scope are the supplies and the purchase operations management and materials and raw material orders reception as well as the dispatch of merchandise and finished products.
