(a) Discuss the role of IT in stores department towards good management of inventories. (10 marks) (b) Explain the following stock control levels: (i) Maximum level (3 marks) (ii) Minimum level (2 marks) (iii) Re-Order level (3marks) (iv) Danger level (2 marks) Page 1 of 2

<br />(a) IT plays a pivotal role in the store department for effective inventory management. It helps in tracking inventory levels, automating ordering processes, and reducing human errors. With the help of IT, stores can maintain real-time inventory records, forecast future demands, and manage multiple warehouses efficiently. This leads to better inventory control, reduced costs, and improved customer satisfaction.<br />(b) (i) The maximum level is the highest amount of stock that a business wishes to hold for a particular item. It is the level beyond which the business starts to face stockouts or shortages.<br />(ii) The minimum level is the lowest amount of stock that a business wishes to maintain for a particular item. It is the level below which the business starts to face stockouts or shortages.<br />(iii) The re-order level is the level of stock at which a new order should be placed to replenish the stock. It is usually set at a level that will ensure that stock is received before it reaches the minimum level.<br />(iv) The danger level is the level of stock at which the business starts to face a high risk of stockouts or shortages. It is usually set at a level that is below the minimum level and above which the business starts to face significant risks.