Stock Control Systems

1. Why do we use stock control systems?

a. What is a Stock Control System
Every business needs to keep track of the items that it manufactures or sells (the stock). The system that monitors the items in stock is called the stock control system.

b. Managing stock
This allows businesses to keep track of how many products they have in stock, how many they need to order. The Stock Control System automatically manages this.

c. Purchases
The business’ Stock System calculates how many it should have in stock. Too less and they lose sales, too much and they are wasting money that should be in the bank.

d. Sales
Every time a business makes a sale, the Stock Control Systems register it and reduce by the quantity sold so they are able to manage the stock.

e. Re-ordering
The Stock Control System is very clever. It will calculate by the amount of sales, how much of it product it needs in stock. Once it has calculated the amount, it goes ahead and automatically orders the items.

2. Examples
a. LEO - historical developments & importance
LEO was created by Lyons shops, who served tea, cakes etc. Lyons had always been an innovative company, if ever a van or oven didn’t work, they would get an engineer to create a better one. Lyons used LEO I initially for valuation jobs, but its role was extended to include payroll, inventory, and so on. One of its early tasks was the elaboration of daily orders which were phoned in every afternoon by the shops and used to calculate the overnight production requirements, assembly instructions, delivery schedules, invoices, costings, and management reports.

b. Decathlon Sports Shops
Decathlon has a much more advanced stock control system. It uses modern computers. Everything is done wirelessly, it even orders what it thinks is the right amount of products automatically. It does not require a human to order anything, you just look at how much stock you have, which it calculates on how much is needed.

System Diagram
Supermarket stock control diagram

Computer Model 4

Decathlon worksheet - Click here