Define Floor Stock

It is the portion of inventory that is generally left in boxes in the back storage area until needed up front for display. 1 definition material and components stored on the production floor used as needed for multiple production orders and not pegged or issued to individual orders. Apics defines floor stock as stocks of inexpensive produc tion parts held in the factory from which production work ers can draw without requisitions.

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Because of the problems experienced with backflushing the concept of floor stock can be used in conjunction with it to overcome many of the problems it created.

Define floor stock. A floor in finance may refer to several things including the lowest acceptable limit the lowest guaranteed limit or the physical space where trading occurs. Also known as back stock in some settings floor stock is a term used to identify inventory items that are used to replenish stock that is maintained on a store floor or in a designated area within a plant facility for use by employees without the need to make use of a requisition form. A floor stock system in a hospital involves the storage of pharmaceutical and over the counter drugs where they are needed usually in a nurse s station rather than in a pharmacy as explained on knowledge source. This extra stock allows a retail business to resupply store shelves and display counters in between reorder deliveries.

Inventory on hand that has not yet been loaded onto shelves. While the use of the term is slightly different in retailing than in manufacturing the core concept is. Normally lower dollar value backflushed items. Defined by lean affiliates.

Also called back stock.

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