Module E - Impact of IT Systems - Stock Control

What is the primary purpose of IT systems used for stock control?

• To monitor the movement of stock within the organisation

• To monitor the financial transactions related to stock

• To monitor the human resources related to stock management

• To monitor the advertising of stock

Answer explanation

Word processing software and spreadsheet software are general office productivity tools, and web browsing software is used to access the internet.

Which of the following IT systems is commonly used for stock control? (a)  

• Word processing software
• Spreadsheet software
•  Inventory management software
• Web browsing software

Answer explanation

Inventory management software is specifically designed to manage stock levels and keep track of inventory movements. Word processing software and spreadsheet software are general office productivity tools, and web browsing software is used to access the Internet.

What are the benefits of using IT systems for stock control? (a)  

• Improved accuracy and efficiency
• Reduced costs and increased profits
• Better decision-making capabilities
• All of the answers

Answer explanation

IT systems for stock control can improve accuracy and efficiency, reduce costs and increase profits, and provide better decision-making capabilities.

Which of the following is a disadvantage of using IT systems for stock control?

• Increased efficiency and productivity

• Dependence on technology

• Improved communication and collaboration

• Enhanced data security

Answer explanation

IT systems for stock control can be vulnerable to technological failures or hacking, which can lead to significant disruptions in stock management processes.

Which IT system feature allows for the automatic replenishment of stock when it reaches a certain level? (a)  

• Just-in-time inventory management
• Automatic ordering
• Reorder point planning
• Demand forecasting

Answer explanation

This feature enables automatic replenishment of stock when it reaches a predetermined level.

Which IT system feature allows for real-time monitoring of stock levels? (a)  

• Inventory forecasting
• Real-time inventory tracking
• Automatic replenishment
• Batch processing

Answer explanation

This feature allows for the constant monitoring of inventory levels and can trigger alerts when levels fall below a certain threshold.

What is the purpose of barcodes in IT systems for stock control?

• To identify and track individual items

• To communicate between different IT systems

• To monitor financial transactions related to stock

• To provide visual identification of stock items

Answer explanation

Barcodes contain unique identifying information for each item, enabling easy and accurate tracking of stock movements.

Which IT system feature allows for the analysis of historical sales data to predict future demand? (a)  

• Inventory forecasting
• Reorder point planning
• Demand forecasting
• Automatic ordering

Answer explanation

This feature uses historical sales data to predict future demand and can help organisations plan stock levels accordingly.

What is the purpose of RFID technology in IT systems for stock control?

• To track stock movements and identify individual items

• To monitor financial transactions related to stock

• To facilitate communication between different IT systems

• To provide visual identification of stock items

Answer explanation

RFID technology allows for the automatic tracking of stock movements and can identify individual items without the need for a physical barcode.

Which of the following is a feature of IT systems used by organisations for stock control?

• Manual tracking of stock levels

• Limited accessibility to stock information

• Automated stock replenishment

• Delayed stock updates

Answer explanation

Automated stock replenishment is a key feature of IT systems used by organisations for stock control. It helps in maintaining optimal stock levels by automatically reordering stock when levels fall below a certain threshold. This reduces the likelihood of stockouts and overstocking, which can lead to financial losses. Manual tracking of stock levels (A) is a time-consuming process and prone to errors. Limited accessibility to stock information (B) can lead to delays in decision-making and cause supply chain disruptions. Delayed stock updates (D) can result in inaccurate stock levels and compromise the effectiveness of the IT system.