How much stock should you keep?
Deciding how much stock to keep depends on the size and nature of your business, and the type of stock involved. If you are short of space, you may be able to buy stock in bulk and then pay a fee to your supplier to store it, calling it off as and when needed.
Keeping little or no stock and negotiating with suppliers to deliver stock as you need it
Advantages Disadvantages
Efficient and flexible - you only have what you need, when you need it Meeting stock needs can become complicated and expensive
Lower storage costs You might run out of stock if there's a hitch in the system
You can keep up to date and develop new products without wasting stock You are dependent on the efficiency of your suppliers
This might suit your business if it's in a fast-moving environment where products develop rapidly, the stock is expensive to buy and store, the items are perishable or replenishing stock is quick and easy.