What is stock control?

• A. Maintaining maximum stock at all times to prevent shortages.
• B. Forecasting demand while considering costs.
• C. Managing stock levels to balance supply and demand, avoid overstock/stockouts, and control costs.
• D. Ordering automatically whenever stock runs low, regardless of demand.

Answer: (C)

Stock control is about managing inventory so the right amount of stock is available to meet demand while keeping costs under control. It involves balancing supply with what customers want, avoiding both too much stock and too little, and keeping expenses related to storing and handling stock in check.

This answer fits best because it highlights three key elements: (1) managing stock levels to match what’s being used or sold, (2) avoiding overstock and stockouts, and (3) controlling costs like carrying, obsolescence, and waste. Together, these ideas keep products available when needed without tying up excessive capital in unused inventory.

Keeping maximum stock at all times would raise carrying costs and risk waste if demand drops. Focusing only on forecasting demand and costs misses the practical, day-to-day control of actual stock levels. Automatically ordering whenever stock runs low, regardless of demand, can lead to mismatches between supply and need, causing both shortages and excess stock.