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stock levels

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zinc

i wondered if anybody could give me an opinion on the amount of stock to keep in the storeroom as a percentage of the total stock available to the business, at the moment i seem to have rather a lot of of money tied up in stock that i have paid for and havent managed to display yet.I think 10% may be a good figure?too high?
 
some questions spring to mind.

How quickly will this stock be turned over into actual sales?

How quick are the lead times for replenishment?

If you order larger quantities and therefore potentially hold more stock do you gain in tems of discount etc...?

Are the products seasonal/fashion/trend orientated?

I'm sure there are more, but hope this helps with your question.

Nige
 
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These are long life products, average 18-24 months and ,yes i get a much larger discount when i buy large amounts(extra 10-15%0 but nit still seems to tie up a lot of money, I think at the moment I have approx £3000 tied in stock, which are all items that sell pretty much at a standard rate year round
 
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Hi zinc,
A wise way to look at this is whether you can make more than the 10 - 15% discount of the £3000 if you were to use that money for other purchases. It's just 'dead money' in the stockroom, especially if it's able to be replenished quite quickly.

I don't think there is a 'benchmark' amount of stock that one keeps; it is really determined by the trader after he/she gets a 'feel' of the turnover of the business.

The other factor is that you have floorspace used up for this stock. This too, could possibly be used more effectively or more productively.

Cheers, Nigel
 
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