Question 1

What is the main difference between inventory and stock?

Accepted Answer

Inventory includes all materials for production, while stock is the subset of items ready for sale.

Question 2

How does inventory affect cash flow?

Accepted Answer

Excess inventory ties up cash in storage costs, whereas efficient management improves cash flow by reducing overhead.

Question 3

Why is inventory turnover ratio important?

Accepted Answer

It shows how quickly inventory is sold, helping identify whether inventory levels align with demand.

Question 4

What are the best tools for inventory management?

Accepted Answer

Tools like Katana MRP, ShipBob, and Sortly provide real-time tracking, analytics, and integration with supply chains.

Question 5

What are cycle counting and stocktaking?

Accepted Answer

Cycle counting regularly checks portions of inventory, while stocktaking is an annual check of all stock. Both ensure record accuracy and help in identifying issues early.

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Day: November 13, 2024

Inventory vs Stock: Key Differences, Types, and Management Essentials

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