Stock Control
The process of managing inventory levels to ensure the business has enough stock to meet demand while minimising holding...
Formula
Reorder Level = Lead Time (days) × Daily Usage Rate
Real World
Tesco uses RFID scanning and EPOS data to trigger automatic reorders the moment shelf stock falls to reorder level, preventing empty shelves while avoiding the cost of warehousing excess inventory.
Exam Focus
When drawing or interpreting a stock control diagram, correctly label buffer stock, reorder level, and lead time — each is a separate mark.
How well did you know this?