Sammy Kiprop

 Comparison Study on Stock Control Methods in Retail and Manufacturing Student’s Name Institutional Affiliation Course Details Professor’s Name Date Comparison Study on Stock Control Methods in Retail and Manufacturing Stock control is vital for any business that deals with physical goods, whether it’s a retail or a manufacturing firm. The method a business chooses depends on its operations, the nature of its products, and customer expectations (Rosário & Raimundo, 2021). A DIY superstore, as a retail organization, and the Executive Upholstery Company, as a manufacturer, each require a different stock control approach to operate efficiently. Two commonly used stock control methods are the Reorder Level (ROL) system and the Just-in-Time (JIT) method. While both aim to balance inventory levels with demand, they are scheduled to different businesses. In this essay, I will compare how a DIY superstore and Executive Upholstery organizations apply ROL and JIT methods and why each is suitable for their operations. The DIY superstore uses the Reorder Level (ROL) method, which helps it to maintain consistent product availability for customers. This method works by setting a trigger point called the re-order level so that when stock falls to this point, a new order is placed (Graves & Juanes, 2024). For example, if the average sale of garden shovels is 10 per day, and the delivery time is 3 days, the reorder level would be 30 shovels (10 × 3). This system ensures that popular items like tools and paint don’t run out, keeping customer satisfaction high. Retail environments depend heavily on having a wide range of items always in stock, as customers expect immediate availability. The superstore uses real-time sales data and automated software to track inventory and send alerts when stock reaches the reorder level. On the other hand, the Executive Upholstery Company uses the Just-in-Time (JIT) stock control method to support its made-to-order production model. JIT involves ordering raw materials like fabric, wood, and foam only when there is a confirmed customer order. For example, if a client orders a sofa that needs eight metres of blue velvet fabric and four wooden legs, the company will order just that amount once the order is placed. This avoids holding excess stock that may become outdated or damaged, saving storage costs and reducing waste. According to Govindasamy et al (2022), in manufacturing, especially with customized products, holding too much inventory can tie up cash and take up valuable space. The company supports JIT by using planning software to match raw material orders exactly with upcoming production needs. In conclusion, different types of businesses require different stock control methods based on their operational needs. The DIY superstore benefits from the Reorder Level system to keep shelves stocked and customers satisfied. In contrast, the Executive Upholstery Company thrives using Just-in-Time, which supports its focus on efficiency and customization. Both methods, while different, aim to reduce waste, manage cash flow, and ensure timely availability. By choosing the right stock control system, each business can operate smoothly and stay competitive in its market. Ultimately, the success of stock control lies in aligning the method with the nature and goals of the business. References Rosário, A., & Raimundo, R. (2021). Consumer Marketing Strategy and E-Commerce in the Last Decade: A Literature review. Journal of Theoretical and Applied Electronic Commerce Research, 16(7),-. https://doi.org/10.3390/jtaer- Graves, S. C., & Juanes, R. (2024, May 1). Establishing inventory maturity in a Make-To-Order manufacturing environment. https://hdl.handle.net/1721.1/156025 Govindasamy, C., Antonidoss, A., & Pandiaraj, A. (2022). Cost Optimization for Inventory Management in Blockchain and Cloud. S, 59–74. https://doi.org/10.1002/-.ch5 Top of Form Bottom of Form