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Jemshah
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Asked: 2023-01-03T11:37:55+00:00 In:

Explain four factors that determine stock levels in catering establishments. (8 marks)June/July 2020

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Explain four factors that determine stock levels in catering establishments. (8 marks)June/July 2020

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    1. Sales volume: The volume of sales can have a significant impact on stock levels, as higher sales may lead to a greater need for certain items, while lower sales may result in excess inventory.
    2. Lead time: The time it takes to receive a new shipment of goods from a supplier can also impact stock levels. Long lead times may require higher levels of inventory to ensure that there is sufficient stock to meet demand, while shorter lead times may allow for lower levels of inventory.
    3. Seasonality: Seasonal fluctuations in demand can also affect stock levels. For example, a catering establishment that specializes in holiday meals may need to increase stock levels in the lead-up to major holidays to meet the expected demand.
    4. Shelf life: The shelf life of perishable goods can also impact stock levels, as items with a shorter shelf life will need to be used or sold more quickly.
    5. Waste and spoilage: Waste and spoilage can also impact stock levels, as items that are lost or discarded will need to be replaced, which may require higher levels of inventory.
    6. Ordering and receiving processes: The efficiency of the ordering and receiving processes can also impact stock levels. Inefficient processes can lead to delays in restocking, which may result in shortages or excess inventory.
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