Question 1 · Medium
In stock management, when should a new order normally be placed?
- AWhen stock falls to the reorder level
- BAfter a stock-out has been reported by patients
- COnce a year only
- DWhen the shelf is completely empty
Show answerHide answer
Answer: A · When stock falls to the reorder level
The reorder level is set so that stock lasts through the supplier lead time. Ordering at that level avoids stock-outs, without carrying excess stock. Ordering only at zero stock causes gaps.
- B: Waiting for complaints means harm has already occurred.
- C: Annual ordering ties up money and risks expiry.
- D: At zero, stock has already run out during lead time.
Remember this
Order when stock reaches the reorder level.