Stock administration and strategies - An overview
A common doubt that always unites and may even cause conflict among product managers, logistics administrators and marketing analysts is the stock strategy for a product: Should we have it in stock? How much should we keep? When and how often do we request more? It is a tricky question and we intend to give you and overview of it in this post. Why do we stock products? When selling products or providing services that need to use some product, demand and supply are not 100% predictable and also there are lead times with uncertainties. If lead time was totally reliable and demand and production could be perfectly predictable, there would be no reason to ever exist stock. Why would you consider having the company's money stuck over stocked products? Imagine we're in a hypothetical world, and we have a product demand that is constant and we know for a fact it will be constant for a long time. Also, imagine your production (or supp...