Stock turn

Expressed as a Stock turn , representing how many times stocks are turned round in a given period and/or as the number of days stock of finished goods available to meet sales demand. 

Procurement of items must be at the most appropriate level in order to obtain the best value for money while ensuring the quality of the product and the supply chain. This level will vary according to local/national policies. It will include consideration of the most appropriate Stock Turn for the individual items. A Stock Turn is the rate at which a company s goods are sold and replaced. With main fine stock there should be a turnover of around five or six times a year. However in pharmacies there are a number of medicines which require different considerations when applying stock control principals. The medicines in these categories may never be used but it is essential to have them available if needed. Therefore, for these medicines the concept of a Stock Turn will not apply. However, if possible. 

Some medicines may be considered seasonal and require special attention with regards to stock control at different times of the year for example, flu vaccinations. The concept of a stock turn for these materials has to relate to the period in which they will be required and not to the usual yearly considerations. 

Many raw materials used in preparations will not be packed in containers suitable to comply with a normal Stock Turn and therefore should be considered to be outside such rules. For example they may only be available in 500 g when the needs of the preparation unit is for 10 g per year. Nevertheless care should be taken to minimise stock loss through out of date materials on the shelves. 

Performance measures in supply chain management can include return on assets employed, stock turn, on time delivery, transportation costs and other costs and measures as explained in Chapter 19. 

How well do you pursue a make-to-order policy with an emphasis on material velocity (stock turn) (Large stocks of RM, work in progress and finished goods = 0.1, just-in-time philosophy with little or no buffer stock = 0.5.) 0.1 0.2 0.3 0.4 0.5... 

Chapter 19 is our measurement chapter, but as each chapter is designed to stand alone inventory measurements are discussed here. Performance measures are needed to drive continuous improvement, if we do not know how well we are performing, if we do not have measurements, how can we know if we have improved, in terms of client satisfaction, stock outs and stock turns. Measurement is also necessary to set directions and targets for the future. The criteria for performance measures should cover a balanced approach to aU key parameters of the supply chain and should provide operational measures rather than purely financial measures. Measures should be simple, easy to define and easy to monitor. In determining what should be measured it is useful to get away from standard accounting measures. Supply chain management requirements are different from those of the accountants. In determining our own measurements we should ask ... 

Stock turn Planned versus actual —> Assets turn Order cycle time —> Order fill On-time delivery —> Invoice accuracy Returns... 

Calculates stock turn for each line item. 

The re-order system will require a calculation taking into account stock turn, lead times, and a reserve level to determine a re-order level. It is important in the grocery industry not to hold too much stock not only because of the financial cost of holding stock and limited shelf space, but also the perishability of food items (used by dates). It is also important not to run out of stock. The calculation of a re-order point is important Bar coding updates information of average lead times, average demand and adjusts for seasonal ups and downs. 

Quality Stock turn, days of stock held Capital tied up in stock Stock shortages late deliveries of input materials leading to disruptions and delays Lead times (input and output) Late delivery to customers Customer queues Obsolescent stock (past used by date, out of fashion, out dated technology) Reject rates... 

Admittedly, bonds just aren t as sexy as stocks. At the club, on the green, at the restaurant, on the plane, we all love to talk about what stocks we bought recently that made us a killing. Flaunting the winner is, well, basic human nature. (Note that people rarely talk about what stocks turned out to be losers.)... 

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