NCERT Textbook: Stock Levels in Storage | Extra Documents & Tests for Class 9 PDF Download

 Page 1


One of the challenges in business for a retailer is 
maintaining stock levels. Stock level means the level of 
stock required for an efficient and effective control of 
goods, to avoid over-and under-stocking of goods. The 
need of inventory control is to maintain the stock of 
goods as low as possible but at the same time make them 
available as and when required. 
In order to have a smooth inventory management in an 
organisation and run a retail unit successfully a retailer 
has to determine various stock levels providing over-
and under-stocking. These levels help the organisation 
to meet the customers’ demand and to satisfy their 
needs. It also enables to avoid unnecessary investment 
in the inventory.
This unit has been divided into four sessions. The 
first session deals with maintaining stock levels in retail 
stores. The second session is devoted to documents 
required for stock handling. The third session explains 
about the reporting storage space and the fourth session 
discusses handling equipments.
SeSSion 1: Stock LeveLS in RetaiL StoReS
Meaning of stock level
Everything which is used to make products, provide 
services and to run business is part of stock.
Stock Levels in 
Storage
3
Page 2


One of the challenges in business for a retailer is 
maintaining stock levels. Stock level means the level of 
stock required for an efficient and effective control of 
goods, to avoid over-and under-stocking of goods. The 
need of inventory control is to maintain the stock of 
goods as low as possible but at the same time make them 
available as and when required. 
In order to have a smooth inventory management in an 
organisation and run a retail unit successfully a retailer 
has to determine various stock levels providing over-
and under-stocking. These levels help the organisation 
to meet the customers’ demand and to satisfy their 
needs. It also enables to avoid unnecessary investment 
in the inventory.
This unit has been divided into four sessions. The 
first session deals with maintaining stock levels in retail 
stores. The second session is devoted to documents 
required for stock handling. The third session explains 
about the reporting storage space and the fourth session 
discusses handling equipments.
SeSSion 1: Stock LeveLS in RetaiL StoReS
Meaning of stock level
Everything which is used to make products, provide 
services and to run business is part of stock.
Stock Levels in 
Storage
3
Store o perationS a SSiStant – ClaSS iX
50
Stock level is the different levels of stock required for 
effective control of materials at a retail store, to avoid 
over- and under-stocking of materials.
Stock levels in retail store
After receiving goods for storage in the retail store, the 
responsibility of the store operations assistant or the 
store keeper increases. The store operations assistant 
should constantly observe the stock levels of various 
goods in the retail store to avoid the repercussions of 
over or under-stocking which are dangerous for the retail 
organisation. Under-stocking may lead to dissatisfaction 
of customers owing to non-supply of goods on time, 
and over-stocking could result in increased stocks of 
inventory which will ultimately lead to an increase in 
the cost of storage, insurance, chance of obsolescence, 
spoilage, theft, etc. Hence, it becomes necessary to 
maintain a suitable stock level of all types of goods.
Types of stock levels
There are mainly four types of stock levels.
Minimum stock level
It is the minimum level of goods that should 
be maintained by retail to avoid customer 
dissatisfaction. If the stock in retail store is 
less than the minimum level then the retailer 
should immediately order the goods. When 
the stock goes below the minimum level then 
it is called under-stocking which is shown in 
Fig. 3.1.
Maximum stock level
It is the maximum level of goods that is maintained by 
a retail store. Beyond the maximum level of stock, the 
retailer should not order more goods, as it may increase 
the carrying cost. When the stock crosses the maximum 
stock level it is called over stocking which is shown in 
Fig. 3.2. 
Fig. 3.1 Minimum Stock Level of Goods
Page 3


One of the challenges in business for a retailer is 
maintaining stock levels. Stock level means the level of 
stock required for an efficient and effective control of 
goods, to avoid over-and under-stocking of goods. The 
need of inventory control is to maintain the stock of 
goods as low as possible but at the same time make them 
available as and when required. 
In order to have a smooth inventory management in an 
organisation and run a retail unit successfully a retailer 
has to determine various stock levels providing over-
and under-stocking. These levels help the organisation 
to meet the customers’ demand and to satisfy their 
needs. It also enables to avoid unnecessary investment 
in the inventory.
This unit has been divided into four sessions. The 
first session deals with maintaining stock levels in retail 
stores. The second session is devoted to documents 
required for stock handling. The third session explains 
about the reporting storage space and the fourth session 
discusses handling equipments.
SeSSion 1: Stock LeveLS in RetaiL StoReS
Meaning of stock level
Everything which is used to make products, provide 
services and to run business is part of stock.
Stock Levels in 
Storage
3
Store o perationS a SSiStant – ClaSS iX
50
Stock level is the different levels of stock required for 
effective control of materials at a retail store, to avoid 
over- and under-stocking of materials.
Stock levels in retail store
After receiving goods for storage in the retail store, the 
responsibility of the store operations assistant or the 
store keeper increases. The store operations assistant 
should constantly observe the stock levels of various 
goods in the retail store to avoid the repercussions of 
over or under-stocking which are dangerous for the retail 
organisation. Under-stocking may lead to dissatisfaction 
of customers owing to non-supply of goods on time, 
and over-stocking could result in increased stocks of 
inventory which will ultimately lead to an increase in 
the cost of storage, insurance, chance of obsolescence, 
spoilage, theft, etc. Hence, it becomes necessary to 
maintain a suitable stock level of all types of goods.
Types of stock levels
There are mainly four types of stock levels.
Minimum stock level
It is the minimum level of goods that should 
be maintained by retail to avoid customer 
dissatisfaction. If the stock in retail store is 
less than the minimum level then the retailer 
should immediately order the goods. When 
the stock goes below the minimum level then 
it is called under-stocking which is shown in 
Fig. 3.1.
Maximum stock level
It is the maximum level of goods that is maintained by 
a retail store. Beyond the maximum level of stock, the 
retailer should not order more goods, as it may increase 
the carrying cost. When the stock crosses the maximum 
stock level it is called over stocking which is shown in 
Fig. 3.2. 
Fig. 3.1 Minimum Stock Level of Goods
Stock LeveLS in Storage 51
Re-order level
When the quantity of goods reach a certain level then a 
fresh order is sent to procure new products. The retailer 
places an order before the goods reach a minimum level. 
Danger level
If the stock touches danger levels, then immediate 
action should be taken to maintain the stocks even if 
additional cost is incurred in arranging the required 
goods. 
How to check stock levels? 
Any business that holds a stock of items 
for sale, whether for general public or other 
businesses, keeps an accurate record of all 
the items in hand. The stock levels, also 
called inventory, can be checked by using a 
variety of methods.
 (a) Stock ledger: Stock ledger keeps the 
information of the stock and amount 
of stock or inventory. It also helps in 
calculating the percentages of vendor 
pricing, sales and profits. 
 (b) Bin card: It is used to keep a track of 
the number of items. 
 (c) Computerised: Computerised stock checking 
systems are used by businesses which wish to 
have a continually updated list of available stock.
Need for managing stock level in retail
The need for maintaining stock levels in retail arise on 
account of the following reasons.
• It helps in managing the current stock levels, ordered 
items and products as well as ones already sold. 
• It provides a constant supply of products to fulfill 
customer demand.
• It allows customer retention. 
• Customers convert into loyal customers by handling 
stock levels.
Fig. 3.2 Maximum Stock Level of Goods
Page 4


One of the challenges in business for a retailer is 
maintaining stock levels. Stock level means the level of 
stock required for an efficient and effective control of 
goods, to avoid over-and under-stocking of goods. The 
need of inventory control is to maintain the stock of 
goods as low as possible but at the same time make them 
available as and when required. 
In order to have a smooth inventory management in an 
organisation and run a retail unit successfully a retailer 
has to determine various stock levels providing over-
and under-stocking. These levels help the organisation 
to meet the customers’ demand and to satisfy their 
needs. It also enables to avoid unnecessary investment 
in the inventory.
This unit has been divided into four sessions. The 
first session deals with maintaining stock levels in retail 
stores. The second session is devoted to documents 
required for stock handling. The third session explains 
about the reporting storage space and the fourth session 
discusses handling equipments.
SeSSion 1: Stock LeveLS in RetaiL StoReS
Meaning of stock level
Everything which is used to make products, provide 
services and to run business is part of stock.
Stock Levels in 
Storage
3
Store o perationS a SSiStant – ClaSS iX
50
Stock level is the different levels of stock required for 
effective control of materials at a retail store, to avoid 
over- and under-stocking of materials.
Stock levels in retail store
After receiving goods for storage in the retail store, the 
responsibility of the store operations assistant or the 
store keeper increases. The store operations assistant 
should constantly observe the stock levels of various 
goods in the retail store to avoid the repercussions of 
over or under-stocking which are dangerous for the retail 
organisation. Under-stocking may lead to dissatisfaction 
of customers owing to non-supply of goods on time, 
and over-stocking could result in increased stocks of 
inventory which will ultimately lead to an increase in 
the cost of storage, insurance, chance of obsolescence, 
spoilage, theft, etc. Hence, it becomes necessary to 
maintain a suitable stock level of all types of goods.
Types of stock levels
There are mainly four types of stock levels.
Minimum stock level
It is the minimum level of goods that should 
be maintained by retail to avoid customer 
dissatisfaction. If the stock in retail store is 
less than the minimum level then the retailer 
should immediately order the goods. When 
the stock goes below the minimum level then 
it is called under-stocking which is shown in 
Fig. 3.1.
Maximum stock level
It is the maximum level of goods that is maintained by 
a retail store. Beyond the maximum level of stock, the 
retailer should not order more goods, as it may increase 
the carrying cost. When the stock crosses the maximum 
stock level it is called over stocking which is shown in 
Fig. 3.2. 
Fig. 3.1 Minimum Stock Level of Goods
Stock LeveLS in Storage 51
Re-order level
When the quantity of goods reach a certain level then a 
fresh order is sent to procure new products. The retailer 
places an order before the goods reach a minimum level. 
Danger level
If the stock touches danger levels, then immediate 
action should be taken to maintain the stocks even if 
additional cost is incurred in arranging the required 
goods. 
How to check stock levels? 
Any business that holds a stock of items 
for sale, whether for general public or other 
businesses, keeps an accurate record of all 
the items in hand. The stock levels, also 
called inventory, can be checked by using a 
variety of methods.
 (a) Stock ledger: Stock ledger keeps the 
information of the stock and amount 
of stock or inventory. It also helps in 
calculating the percentages of vendor 
pricing, sales and profits. 
 (b) Bin card: It is used to keep a track of 
the number of items. 
 (c) Computerised: Computerised stock checking 
systems are used by businesses which wish to 
have a continually updated list of available stock.
Need for managing stock level in retail
The need for maintaining stock levels in retail arise on 
account of the following reasons.
• It helps in managing the current stock levels, ordered 
items and products as well as ones already sold. 
• It provides a constant supply of products to fulfill 
customer demand.
• It allows customer retention. 
• Customers convert into loyal customers by handling 
stock levels.
Fig. 3.2 Maximum Stock Level of Goods
Store o perationS a SSiStant – ClaSS iX
52
Check your Progress
• It monitors order levels, which indicates the owner 
and manager to order before the stock ends. 
• It avoids over-stocking and under-stocking positions 
of goods in retail stores.
Activity 1 
Visit a retail store to know the stock level, the minimum stock 
level and how to maintain stock levels and prepare stock records.
Materials required
Pen/Pencil, Notebook, Checklist, Questionnaire
Procedure
1. Make groups of four or five students of the class. 
2. Ask each group to visit a retail outlet and conduct a survey 
on the stock levels with a questionnaire.
3. Ask them to prepare a questionnaire related to stock level 
maintenance in the retail store.
4. Ask them to interact with the store manager of the retail 
organisation. 
5. Ask the following questions and write their reply in not more 
than 50 words.
Questions 
(a) Which method is used by the retail store for managing the 
stock level?
(b) At which level does the retail organisation place an order for 
new stock? 
(c) What are the problems that you are facing in managing the 
stock level?
(d) How do they keep themselves updated with the information 
about the stock?
A. Fill in the Blanks
1. Everything which is used to make products, provide services 
and to run business is part of ____________.
2. ____________ level provides a steady supply of products to 
satisfy customer needs.
n oteS
Page 5


One of the challenges in business for a retailer is 
maintaining stock levels. Stock level means the level of 
stock required for an efficient and effective control of 
goods, to avoid over-and under-stocking of goods. The 
need of inventory control is to maintain the stock of 
goods as low as possible but at the same time make them 
available as and when required. 
In order to have a smooth inventory management in an 
organisation and run a retail unit successfully a retailer 
has to determine various stock levels providing over-
and under-stocking. These levels help the organisation 
to meet the customers’ demand and to satisfy their 
needs. It also enables to avoid unnecessary investment 
in the inventory.
This unit has been divided into four sessions. The 
first session deals with maintaining stock levels in retail 
stores. The second session is devoted to documents 
required for stock handling. The third session explains 
about the reporting storage space and the fourth session 
discusses handling equipments.
SeSSion 1: Stock LeveLS in RetaiL StoReS
Meaning of stock level
Everything which is used to make products, provide 
services and to run business is part of stock.
Stock Levels in 
Storage
3
Store o perationS a SSiStant – ClaSS iX
50
Stock level is the different levels of stock required for 
effective control of materials at a retail store, to avoid 
over- and under-stocking of materials.
Stock levels in retail store
After receiving goods for storage in the retail store, the 
responsibility of the store operations assistant or the 
store keeper increases. The store operations assistant 
should constantly observe the stock levels of various 
goods in the retail store to avoid the repercussions of 
over or under-stocking which are dangerous for the retail 
organisation. Under-stocking may lead to dissatisfaction 
of customers owing to non-supply of goods on time, 
and over-stocking could result in increased stocks of 
inventory which will ultimately lead to an increase in 
the cost of storage, insurance, chance of obsolescence, 
spoilage, theft, etc. Hence, it becomes necessary to 
maintain a suitable stock level of all types of goods.
Types of stock levels
There are mainly four types of stock levels.
Minimum stock level
It is the minimum level of goods that should 
be maintained by retail to avoid customer 
dissatisfaction. If the stock in retail store is 
less than the minimum level then the retailer 
should immediately order the goods. When 
the stock goes below the minimum level then 
it is called under-stocking which is shown in 
Fig. 3.1.
Maximum stock level
It is the maximum level of goods that is maintained by 
a retail store. Beyond the maximum level of stock, the 
retailer should not order more goods, as it may increase 
the carrying cost. When the stock crosses the maximum 
stock level it is called over stocking which is shown in 
Fig. 3.2. 
Fig. 3.1 Minimum Stock Level of Goods
Stock LeveLS in Storage 51
Re-order level
When the quantity of goods reach a certain level then a 
fresh order is sent to procure new products. The retailer 
places an order before the goods reach a minimum level. 
Danger level
If the stock touches danger levels, then immediate 
action should be taken to maintain the stocks even if 
additional cost is incurred in arranging the required 
goods. 
How to check stock levels? 
Any business that holds a stock of items 
for sale, whether for general public or other 
businesses, keeps an accurate record of all 
the items in hand. The stock levels, also 
called inventory, can be checked by using a 
variety of methods.
 (a) Stock ledger: Stock ledger keeps the 
information of the stock and amount 
of stock or inventory. It also helps in 
calculating the percentages of vendor 
pricing, sales and profits. 
 (b) Bin card: It is used to keep a track of 
the number of items. 
 (c) Computerised: Computerised stock checking 
systems are used by businesses which wish to 
have a continually updated list of available stock.
Need for managing stock level in retail
The need for maintaining stock levels in retail arise on 
account of the following reasons.
• It helps in managing the current stock levels, ordered 
items and products as well as ones already sold. 
• It provides a constant supply of products to fulfill 
customer demand.
• It allows customer retention. 
• Customers convert into loyal customers by handling 
stock levels.
Fig. 3.2 Maximum Stock Level of Goods
Store o perationS a SSiStant – ClaSS iX
52
Check your Progress
• It monitors order levels, which indicates the owner 
and manager to order before the stock ends. 
• It avoids over-stocking and under-stocking positions 
of goods in retail stores.
Activity 1 
Visit a retail store to know the stock level, the minimum stock 
level and how to maintain stock levels and prepare stock records.
Materials required
Pen/Pencil, Notebook, Checklist, Questionnaire
Procedure
1. Make groups of four or five students of the class. 
2. Ask each group to visit a retail outlet and conduct a survey 
on the stock levels with a questionnaire.
3. Ask them to prepare a questionnaire related to stock level 
maintenance in the retail store.
4. Ask them to interact with the store manager of the retail 
organisation. 
5. Ask the following questions and write their reply in not more 
than 50 words.
Questions 
(a) Which method is used by the retail store for managing the 
stock level?
(b) At which level does the retail organisation place an order for 
new stock? 
(c) What are the problems that you are facing in managing the 
stock level?
(d) How do they keep themselves updated with the information 
about the stock?
A. Fill in the Blanks
1. Everything which is used to make products, provide services 
and to run business is part of ____________.
2. ____________ level provides a steady supply of products to 
satisfy customer needs.
n oteS
Stock LeveLS in Storage 53
B. Multiple Choice Questions
1. Stock ledger is ______________.
a) used to track the amount of stock
b) bill of century
c) Both a) and b)
d) None of the above
2. Bin card is a document ______________.
a) used in warehouse
b) used in inventory 
c) Both (a) and (b)
d) None of the above
3. Minimum Stock level means ______________.
a) quantity not necessary 
b) quantity must be maintained in hand all times
c) quantity at certain level
d) None of the above
4. Danger Level means ______________.
a) accurate level
b) replenish stock
c) below stock level
d) None of the above
5. Store Operations Assistant’s work is to ______________.
a) constantly observe the stock levels
b) no need to observe
c) observe once in a year 
d) None of the above
6. Stock means ______________.
a) making products and store into warehouse
b) any services
c) make products, provide services to run business
d) None of the above
C. State whether the following are True or False
1. Reordering level lies between minimum level and maximum 
level. 
2. The stock levels are also called inventory control. 
3. A lack of items in a store forces the customers to look elsewhere. 
4. A bin card is a software that tracks the amount of stock or 
inventory.
5. Stock levels are not required for an efficient and effective 
control of material.
6. Under-stocking may lead to dissatisfaction of customers.
7. When quantity of goods is not available till a certain level 
then a fresh order is sent. 
n oteS