lnvolves ensuring adequate supplies of raw materials for production purposes; ensuring that finished goods are available for espatch; controlling cash tied up in stock; controlling wastage and pilferage; placing a valuation on stock held. The basic objective of any stock control system is to minimise costs of stock whilst maintaining adequate levels of stock. Adequate levels concerns avoiding the situation of stock out, ie where stocks of materials, work-in-progress or finished goods actually run out and halt the production process and / or prevent a customer order being met, resulting in loss of sales. Traditional stock control systems attempt to set maximum and minimum stock levels and plan reorder times so that stocks never fall below a minimum level nor rise above a maximum one.