All these words as goods, raw materials, released and unfinished production are synonyms for word STOCK in a business sence. We all are expecting to get return on invested financial resources called STOCK.

At the present moment principal competitive advantage of business companies is the ability rapidly react to market changes thus to manage their business effectively.

In effective business management are involved such activities as searching for a new business niche, creating a target market, finding and fulfilling needs of potencial customers.

Frequent businessman is dealing with far-distance suppliers. The supply process isn‘t always stable or reliable. Now the customers are demanding to obtain product as fast as possible (here and now).

These and other business circumstances determine compulsory condition as:

    if you want to remain in business environment, you must have a LARGE STOCK.

We are in the 21th century and technologies are developing so incredibly fast. The production life cycle is shortening unceasingly. In several business segments in every few months new products are released. New products secure us to keep customer's trust. The market fluctuations are unpredictable. The forecast of the future still appeals to mathematical models of the 19th century. Growing competetiveness reduces the margins. Even small and illiquid/low turnover stock has a significant and negative impact to financial results of business company. So we can draw such inference from what was mentioned above:

    if you want to remain in business environment, you must have LOWER STOCK AS POSSIBLE.

So where is the truth? Which idea is right? Something inside us is telling us the truth is somewhere else. It isn't in the quantity of the stock. We all know that we must have such quantity of production as we are planning to sell or use in the manufacture. Neither more nor less. But how to predict the necessary quantity/demand? Forecasting? Is it precise enough?

Once again we find ourselves in a closed circle...

There is another way: to manage the stock regarding to it's consumption.