The life profile of stock as a control measure

The control of ‘Raw Materials and Consumables’ is frequently the responsibility of the Production/Operations Manager. Figures are given for the magnitude of these, both nationally and in a hypothetical company. The weakness of the conventional ‘Stock Turn’ or ‘Stock Turnover’ ratio as a control measure is discussed. An alternative, more pointed measure which could very readily be incorporated into a computer based stock control system, ‘The Life’ of stock, where Life=(Stock in store)/(Usage over the last year), is suggested, and its extension, ‘The Life Profile’ is discussed. Examples are given of the ‘Life Profile’ for some 27 separate stores in 15 companies. The use of this profile is discussed along with a systematic discussion of the way in which excess stock may be reduced.