Rather than having a purchasing manager responsible for just stock control and purchasing, it can be a good idea instead to have a materials manager who takes charge of the entire process from production control, through stores, stock control and purchasing, to transport. In practice, this is more manageable with a small business, and the person responsible is likely to be the owner manager.
The main types of stock that you will be handling are consumables, raw materials, work in progress, and finished goods. It is essential that you realise that stock represents money held in your business and deserves to be treated with care.
It is very straightforward to undertake a simple capacity planning exercise. The objective in capacity planning is to identify how much capacity is available to manufacture the required number of products or deliver the required number of service hours. This is important, for example, when you are seeking to take on additional work and wondering whether you have the capacity (both people and machines) to complete the work on time. The converse of this is determining how much work you expect to have and calculating how many staff may be required.
Some businesses are in the position where they manufacture a mix of items, say tables and chairs, but the quantity of each that they can make is constrained by the machines that they have. How do they optimise the use of their machines? How do they maximise the profit that they make?
Constraints might include: