Marketing Essentials

Chapter 24: Stock Handling and Inventory Control

Chapter Summaries

Section 24.1

• The steps in the stock handling process include receiving goods, checking them, marking the goods with a price and other information, if necessary, and delivering them to where they will be used, stored, or displayed for sale.
• Businesses create receiving records when goods come in and assign the goods a receiving number.
• Methods of checking merchandise include the blind check method, the direct check method, the spot check method, and the quality check method.

Section 24.2

• Inventory management is the process of buying and storing products for sale while controlling costs for ordering, shipping, handling, and storage.
• Inventory systems include perpetual inventory systems and physical inventory systems.
• Businesses must meet the needs of their customers. Choosing the best distribution system to meet those needs is part of customer service.
• Inventory turnover is measured by dividing net sales by the average inventory on hand (in retail dollars), or by dividing the cost of goods sold by the average inventory on hand (at cost). The turnover rate in units is found by dividing the number of stockkeeping units (SKUs) sold by the average SKUs on hand.
• Technology such as real-time inventory systems let businesses track all stages of a product, from manufacture to delivery.