Lesson Notes By Weeks and Term - Senior Secondary 3

TERM – 1^ST TERM

WEEK FIVE

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 5 periods each

Date:

Subject: STORE KEEPING

Topic: TERMINOLOGIES

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

I.) Enumerate different terminologies in store keeping                                      

II.) Discuss those terminologies in store keeping.                                       

III.) Determine stock level using the terminologies in store keeping

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures,

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

TERMINOLOGIES

The following are the different terminologies in storekeeping:

1. Stock Keeping Unit (SKU): A unique identifier assigned to each item in inventory to track its movement, sales, and stock levels.
2. Reorder Point: The minimum quantity of a product that triggers the need to reorder to avoid stockouts before the next order arrives.
3. Safety Stock: Additional inventory held above the reorder point to mitigate the risk of stockouts caused by unexpected fluctuations in demand or supply chain disruptions.
4. Lead Time: The time it takes for an order to be fulfilled from the moment it is placed until the goods are received and available for use.
5. Economic Order Quantity (EOQ): The optimal order quantity that minimizes total inventory costs, balancing ordering costs and carrying costs.
6. Just-In-Time (JIT): A inventory management approach aimed at reducing waste and holding costs by ordering and receiving inventory only when needed for production or sale.
7. FIFO (First In, First Out): A method of inventory valuation and management where the oldest inventory is used or sold first, ensuring that goods do not expire or become obsolete.
8. LIFO (Last In, First Out): A method of inventory valuation and management where the most recently received inventory is used or sold first.
9. ABC Analysis: A technique used to categorize inventory items based on their importance and value, with category A items being the most critical and category C items the least critical.

Determination of stock level

There are four major types of stock level in store keeping.

Stock Level: Type 1. Minimum Level:

This represents the quantity which must be maintained in hand at all times. If stocks are less than the minimum level, then the work will stop due to shortage of materials.

Factors to consider are; Lead time, rate of consumption, Nature of material, Reordering level.

Stock Level: Type 2. Maximum Level:

It is the quantity of materials beyond which a firm should not exceed its stocks. If the quantity exceeds maximum level limit then it will be termed as overstocking. A firm avoids overstocking because it will result in high material costs. Maximum stock level will depend upon the following factors:

1. The availability of capital for the purchase of materials in the firm.
2. The maximum requirements of materials at any point of time.
3. The availability of space for storing the materials as inventory.
4. The rate of consumption of materials during lead time.
5. The cost of maintaining the stores.

Stock Level: Type 3. Danger Level:

It is the level below which stocks should not fall in any case. If danger level approaches then immediate steps should be taken to replenish the stocks even if more cost is incurred in arranging the materials. Danger level can be determined with the following formula:

Danger Level = Average Consumption x Maximum reorder period for emergency purchases.

Stock Level: Type 4. Average Stock Level:

The Average stock level is calculated such as:

Average Stock Level = Minimum stock Level + 1/2 of Reorder Quantity

EVALUATION: 1. Identify 5 terminologies in store keeping

2. Identify the 4 types of stock levels in store keeping and describe how they are determined

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively