Storage Stock Levels – Class 9 Chapter 03

Session 1: Stock Levels in Retail Stores

A. Fill in the blanks

Question: Every item used to make products, provide services, and run a business is part of
__.

Stock

Question: __ level ensures a continuous supply of products to meet customer needs.

Minimum

B. Multiple Choice Questions

Question: Stock ledger is __.

a) used to track the quantity of stock

b) century bill

c) both (a) and (b)

d) none of the above

a) used to track the quantity of stock

Question: Bin card is a document __.

a) used in the warehouse

b) used in inventory

c) both (a) and (b)

d) none of the above

c) both (a) and (b)

Question: Minimum stock level means __.

a) quantity not required

b) quantity that must always be available

c) quantity at a certain level

b) quantity that must always be available

Question: Danger level means __.

a) exact level

b) stock replenishment

c) below stock level

d) none of the above

c) below stock level

Question: A store operations assistant’s job is __.

a) to constantly monitor stock levels

b) no need to monitor

c) monitor once a year

d) none of the above

a) to constantly monitor stock levels

Question: Stock means __.

a) making products and keeping them in the warehouse

b) any service

c) making products and providing services to run a business

d) none of the above

c) making products and providing services to run a business

C. True or False

Reorder level is between minimum and maximum level.

True

Stock levels are also called inventory control.

False
Shortage of goods in the store forces customers to look elsewhere.

True

Bin card is software that tracks stock or inventory quantities.

True

Stock levels are not necessary for efficient and effective control of materials.

False

Low stock can dissatisfy customers.

True

When the quantity of goods is not available up to a certain level, a new order is sent.

True

Stock levels indicate different levels of stock required for efficient and effective control of
goods.

True

D. Short Answer Questions

Question: Stock levels should be kept as low as possible but also available when needed.
How is this done?

Answer:

The store operations assistant must constantly monitor stock levels of different items in
the retail store to avoid overstocking or understocking, which can be harmful for the retail
business. Therefore, maintaining an appropriate stock level for all items becomes
necessary.

Question: How many types of stock levels are there?

Answer:

Stock levels are of different types:

• Minimum stock level

• Maximum stock level

• Reorder level
• Danger level

Question: How is accurate stock level management done?

Answer:

Stock levels, also called inventory, can be checked through stock ledgers, bin cards, and
computerized systems.

Session 2: Documents Required for Stock Management

Stock checking can be done using portable electronic __ devices or manual counting.

Scanning

Goods received are checked according to the quantity and description given on the __.

Delivery note

__ note lists what is actually sent through a private carrier.

Goods dispatch

Nowadays many retailers use special __ to receive goods.

Computer systems

B. Multiple Choice Questions

Document management aims to __.

a) save time

b) protect goods

c) prevent spoilage

d) match required items

d) match required items

Documents required to receive goods are __.

a) delivery report

b) bill

c) tax bill
d) all of the above

d) all of the above

Main benefit of effective goods transportation is __.

a) better control over flow of goods

b) poor working conditions

c) increased storage needs

d) all of the above

a) better control over flow of goods

Manual handling tasks include __.

a) loading/unloading cartons on pallets

b) carrying mobile racks

c) moving trolleys, cleaning floors and shelves

d) all of the above

d) all of the above

Reducing the number of times a product is handled is called __.

c) eliminating double handling

C. True or False

Invoices are usually sent with goods.

True

Advanced electronic systems may include automatic reorder functions.

True

Consignment notes sent via computer are not proof of delivery.

False

Automated systems reduce paperwork and speed up checking and information transfer.

True
D. Short Answer Questions – English Translation

Q: Why is documentation necessary in the handling of goods?

Answer:

When stock arrives at a retail store, it usually comes in a truck or container, which needs to
be unloaded. Before starting the unloading process, the retail store manager must know
the details and characteristics of the stock.

Q: What elements should be considered while documenting?

Answer:

The following elements should be considered while documenting:

• A useful guide that is easy to understand for store employees, managers, suppliers, etc.

• Step-by-step instructions should be provided.

• Guidelines for maintaining a safe environment for both employees and customers.

Q: What is the process of checking stock levels?

Answer:

While checking stock levels of different products in a retail store, if any difference or
problem is found, the store operations assistant must inform the authorized person. The
following measures can be taken to correct supply discrepancies:

• Replacement

• Credit

• Disposal

• Selling as seconds

• Repair and charge the supplier

• Return to the supplier

Q: What are the major documents in goods management?

Answer:

The following documents are usually prepared during stock management:

• Delivery Note: A delivery note is usually provided with the goods at the time of delivery.
• Invoice: An invoice is a legal document used when goods are sent and delivered to the
customer.

• Goods Dispatch Note: Used when delivery is made through a private carrier.

• Internal Packing Note: Used to record more details about the delivered stock.

• Electronic Data System: Many retailers use a special computer system to receive goods
or consignments; this is called an automated system.

Session 3: Reporting Storage Space

• __ indicates where the merchandising and customer service departments are located.

Floor plan

• Walls are one of the most important elements of __.

Space allocation

• A store has __ types of floor requirements.

Five

• __ should be provided for dressing rooms, layaway areas, service desks and other
customer service facilities.

Aisle space

B. Multiple Choice Questions

Floor plan indicates:

b) merchandising and customer service location

Store space allocation may be based on:

a) mathematical calculation

Back room means:

a) a receiving area for processing

Office space means:

c) manager’s office
Wall merchandising space:

b) acts as fixtures for holding goods

Floor merchandising space means:

a) where retailers ultimately use scarce resources

To save space in the sales area:

a) hang the TV on the wall

Actual shortage means:

a) theft, loss, breakage or spoilage

Unexpected physical shortage:

a) shrinkage or leakage

C. True or False

Shortage of storage space in retail stores is not a problem.

False

Buyers are most familiar with the sales area.

True

Fixtures are not used for displaying different types of goods.

False

Hanging a TV on the wall saves space, especially in small retail stores.

True

D. Short Answer Questions

Q: Space is a very scarce resource for a retailer. How can a retailer use space?

Ans: A retailer must balance store capacity and efficiency while presenting goods
effectively, because space is limited and retailers rarely achieve all their desired goals.

Q: What is a floor plan?

Ans: A floor plan shows the place where goods or products and customer service areas are
located together, and it also shows movement space for customers.
Q: What is space allocation?

Ans: Space allocation means assigning a specific area for a particular type of product,
providing customer convenience, increasing customer satisfaction and improving sales by
giving a positive shopping experience.

Q: What are the types of space?

Ans: A store mainly has five types of floor needs:

• Back room

• Office and functional space

• Aisles, service areas and other non-sales areas

• Wall merchandising space

• Floor merchandising space

Q: How can shortage of storage space be reported?

Ans: In retail, shortage of storage space must be reported clearly, quickly, and with
actionable details so that management can assess the problem and take corrective
actions such as reorganizing inventory, adjusting orders, or expanding capacity.

Session 4: Handling Equipment

A. Fill in the blanks

• Equipment used should be large enough to handle the load safely.

Equipment

• __ is very useful for carrying small loads in the store.

Trolley

• __ improves productivity and efficiency of employees in a retail store.

Handling equipment

• __ can make better use of their time and money with proper handling equipment.

Customers

B. Multiple Choice Questions

a) retailer

Trolley is useful for:

a) carrying small loads

Basket is used for:

b) small quantities

Electronic fund transfer at point of sale helps in:

a) cashless transactions

Electronic scale is used:

a) to calculate price in fresh produce shops

Pallet is used:

a) to maximize shipping efficiency

Crane is:

a) a type of machine

Forklift is:

a) an industrial truck used to lift and move goods short distances

C. True or False

Safety is not an important aspect of material management.

False

Handling equipment helps improve material flow control in retail.

True

Crane is used only for industrial purposes.

False

Proper equipment is used for experimentally trained employees.

False
Shipping includes only transportation.

False

D. Short Answer Questions

Q: What is the importance of handling equipment?

Ans: The main purpose of handling in a retail store is sorting goods according to customer
needs. Handling includes receiving, storing and shipping. It should be done by trained staff
using proper equipment such as cranes, moving trucks, slings, forklifts, hand trolleys and
pallet jacks.

Q: What are the types of handling equipment?

Ans: Various types of handling equipment used when receiving goods include:

Trolley, bags, baskets, handheld scanners, labeling machines, EFTPOS printer, electronic
scale, pallet, crane, forklift, etc.

Q: Discuss the need for handling equipment.

Ans: Handling equipment plays an important role in retail stores. It:

• helps identify proper distance to move goods

• reduces damage and improves quality

• reduces loading and unloading time

• improves material flow control

• improves safety

• increases employee productivity and efficiency

• helps customers use their time and money better