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KimWarren

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Reply with quote  #1 
I see the importance of identifying Stocks, but find it hard to do - any tips?
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KimWarren

Subject Expert
Registered:
Posts: 107
Reply with quote  #2 
Many people find this tricky - some clues ...
  • Stocks are usually 'things' [people, companies, machines, products in a product range ... ] or 'stuff' [cash, physical inventory ...]
  • Any measurement of a Stock must relate to what you can count at a point in time [right now, start of this week, end of next month ...], performance and most other items in models relate to time-periods [sales per day, profit per quarter, average service quality during last month ... units are often 'something per time-period']
  • There is a small set of common 'strategic' Stocks - customers (people, companies or other buyers), staff, capacity, products in a product range, and cash or debt ... and sometimes 'intermediaries' like dealers, wholesalers or (for a consumer brand) retailers + some special Stocks in special cases (see below
  • The models in the course cover most types of Stock you are likely to need for strategic models
  • There are also a few 'operational' Stocks, like orders-outstanding, the quantity of inventory or work-in-progress + some related financial items (inventory value, debtors, creditors ...)
Here are examples of the standard strategic stocks ...

standard Stock examples.jpg

... and here are some special Stocks in certain cases ...

special-case Stock examples.jpg      

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