MANAGEMENT

BUISENESS MANAGEMENT

INVENTORY CONTROL

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is the name given to the amount of stock that is left to sell after new stock is ordered but has not been received yet?
A
Reorder level
B
Reorder quantity
C
Minimum stock level
D
Buffer Stock
Explanation: 

Detailed explanation-1: -Safety stock inventory, sometimes called buffer stock, is the level of extra stock that is maintained to mitigate risk of run-out for raw materials or finished goods due to uncertainties in supply or demand.

Detailed explanation-2: -Short selling is the selling of a stock that the seller doesn’t own. More specifically, a short sale is the sale of a security that isn’t owned by the seller, but that is promised to be delivered. That may sound confusing, but it’s actually a simple concept.

Detailed explanation-3: -A stop order is an order to buy or sell a stock at the market price once the stock has traded at or through a specified price (the “stop price"). If the stock reaches the stop price, the order becomes a market order and is filled at the next available market price.

Detailed explanation-4: -Liquidation is a term used to describe the conversion of non-liquid assets, such as real property, stocks, or bonds, into liquid property, such as cash, through an exchange on the open market.

Detailed explanation-5: -A sell stop limit is a conditional order to a broker to sell the stock when its price falls up to a specific price – i.e., stop price. A sell stop price has two price components – i.e., a stop price and a limit price.

There is 1 question to complete.