Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 2nd Term
Week: 4
Age: 15 years
Duration: 45 minutes
Subject: Store Management
Curriculum Theme: Store Management
Previous Lesson: Methods of Stock Control.
Topic: Levels of Stock Control
Subject Matter: Maximum stock level, minimum stock level, reorder level, first in first out method, benefits and problems of stock levels, factors to consider in stock control levels

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define maximum stock level, minimum stock level, and reorder level.
Explain how reorder level helps to prevent stock-out.
Explain the First In First Out (FIFO) method of stock issuing.
State benefits of using stock control levels.
State problems that can arise when stock levels are poorly managed.
List factors to consider when setting stock control levels.

Affective Domain:

Show interest in preventing waste, expiry, and loss through proper stock control.
Demonstrate a responsible attitude towards correct stock handling and record keeping.

Psychomotor Domain:

Use a simple example to identify maximum level, minimum level, and reorder level from given figures.
Arrange stock issue sequence correctly using the FIFO method in a class exercise.

Participate actively in group discussion on benefits and problems of stock levels.
Work cooperatively to solve short stock level and reorder level questions.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum
State Unified Scheme of Work
Store Management for Senior Secondary Schools (recommended textbook)
Inventory Management: Meaning and Key Ideas (Investopedia)
FIFO Method: Explanation and Example (Investopedia)
Inventory Control (Encyclopaedia Britannica)

Instructional Materials

The teacher will teach this lesson with the aid of:

Stock level charts (maximum, minimum, reorder)
Simple reorder point examples (worked figures)
Sample stock cards/bin cards (for illustration)
Pictures or sample packs with expiry dates (to explain FIFO)
Whiteboard and marker

Rationale for the Lesson

This lesson helps pupils understand how stores decide when to reorder and how much to keep to avoid shortage and waste. It also helps pupils apply FIFO to reduce expiry and spoilage of goods.

Prerequisite/Previous Knowledge

Pupils have learnt stock control methods, stock records, and stock verification, and have seen goods stored and issued in shops or school stores.

Lesson Content/Board Summary

Levels of Stock Control

Maximum Stock Level

Maximum stock level is the highest quantity of an item a store should keep at any time to avoid tying down too much money and space.

The following are reasons for setting maximum stock level:

To prevent overstocking and unnecessary storage costs.
To reduce risk of damage, expiry, and pilferage.
To ensure good use of store space.

Minimum Stock Level

Minimum stock level is the lowest quantity of an item that must be kept in the store to avoid stock-out before new supplies arrive.

The following are reasons for setting minimum stock level:

To prevent running out of stock during normal sales or production.
To cover delays in supply or transportation.
To maintain steady service to customers.

Reorder Level

Reorder level is the stock point at which a store must place an order for new supply so that goods arrive before stock reaches the minimum level.

The following are key points about reorder level:

It is higher than minimum stock level.
It considers the time it takes to receive goods after ordering (lead time).
It helps to prevent stock-out and emergency buying.

First In First Out (FIFO) Method

FIFO is a stock issuing method in which the oldest stock received is issued first before newer stock.

The following are benefits of FIFO:

Reduces expiry, spoilage, and deterioration of goods.
Ensures good rotation of stock and neat store arrangement.
Helps in selling older items first, especially perishable goods.

Benefits of Stock Control Levels

The following are benefits of using stock control levels:

Prevents stock-out and loss of sales.
Reduces overstocking and wastage.
Helps proper planning of purchases and cash flow.
Improves store efficiency and customer satisfaction.
Reduces storage and handling costs.

Problems of Stock Levels

The following are problems that can occur when stock levels are not properly managed:

Stock-out leading to loss of customers and delays in operations.
Overstocking leading to tied-up capital and lack of space.
Expiry, damage, and spoilage due to poor stock rotation.
Increased pilferage risk when excess stock is kept.
Emergency purchases at higher prices when reorder is delayed.

Factors to Consider in Setting Stock Control Levels

The following are factors to consider when setting stock control levels:

Rate of usage or sales (fast-moving or slow-moving items).
Lead time for supply (how long delivery takes).
Available storage space and store conditions.
Cost of the item and available capital.
Nature of goods (perishable, fragile, seasonal, bulky).
Risk of theft, damage, and obsolescence.
Supplier reliability and availability of substitutes.
Expected demand changes (seasonal demand, promotions, emergencies).

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher asks pupils what happens when a store runs out of a popular item and what happens when too much of a product is kept, then introduces stock control levels and FIFO.
Pupils’ Activity: Pupils respond with examples of stock-out and overstocking from their locality.
Learning Point: Stock levels guide how much to keep and when to reorder.

Step 2: Maximum Stock Level

Time: 6 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines maximum stock level and explains why stores set a limit, using simple store examples.
Pupils’ Activity: Pupils take notes and mention items that should not be overstocked.
Learning Point: Maximum stock level prevents overstocking, waste, and high storage cost.

Step 3: Minimum Stock Level

Time: 6 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines minimum stock level and explains how it helps to avoid stock-out during supply delays.
Pupils’ Activity: Pupils give examples of items that must not finish in a store.
Learning Point: Minimum stock level is the safety level that prevents shortage.

Step 4: Reorder Level

Time: 7 minutes
Teaching Skill: Demonstration
Teacher’s Activity: The teacher explains reorder level and demonstrates a simple reorder point example using lead time and average usage figures.
Pupils’ Activity: Pupils solve a short example and identify when to place an order.
Learning Point: Reorder level helps a store order early enough to avoid reaching minimum level.

Step 5: FIFO Method

Time: 6 minutes
Teaching Skill: Demonstration
Teacher’s Activity: The teacher explains FIFO and uses labelled dates on sample packs/pictures to show how older stock is issued first.
Pupils’ Activity: Pupils arrange issue order correctly using sample dates and record the sequence.
Learning Point: FIFO reduces expiry and supports proper stock rotation.

Step 6: Benefits, Problems, and Factors for Stock Levels

Time: 10 minutes
Teaching Skill: Discussion
Teacher’s Activity: The teacher guides pupils to list benefits and problems of stock levels and then summarizes factors used in setting levels.
Pupils’ Activity: Pupils contribute points, copy notes, and relate factors to local store situations.
Learning Point: Good stock levels improve efficiency, while poor levels cause losses and shortages.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define maximum stock level and minimum stock level.
Explain reorder level and state why it is important.
Define FIFO and state two benefits of using FIFO.
List four factors to consider when setting stock control levels.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summary
Teacher’s Activity: The teacher summarizes the main points and gives an assignment for pupils to write short notes on stock levels and solve one reorder level example provided by the teacher.
Pupils’ Activity: Pupils copy the summary and note the assignment.
Learning Point: Stock levels and FIFO support effective store operations and reduce losses.

Lesson Keywords

Maximum stock level – The highest quantity of an item a store should keep at a time.
Minimum stock level – The lowest quantity that must be kept to avoid stock-out.
Reorder level – The stock point at which a new order must be placed.
Lead time – The time between placing an order and receiving the goods.
FIFO – A method where the oldest stock is issued first.
Overstocking – Keeping more stock than needed.
Stock-out – Running out of an item in the store.

Differentiation

Fast learners solve additional reorder level questions and explain how FIFO applies to perishable goods, while learners who need support use guided notes to define each stock level and identify benefits and problems from a provided list.

Note for teachers using this lesson plan

Use simple numerical examples and familiar goods to explain stock levels clearly. Ensure pupils can define maximum, minimum, and reorder levels, explain FIFO, and list benefits, problems, and factors in an exam-oriented way.