Answer:According to the company regulation, each standard product must be kept the stock of 1000-5000pcs.
When the stock is less than 1000 pcs, we will put it into production at once instead of waiting for the orders. When the stock are more than 5000 pcs, the production must be stopped.
Appropriate stock is a very good support for the customer's sampling and trial production demand.
The appropriate stock is also a guarantee of the quality. The production of the stock is always having more time than the production of the order. We have enough time to do more checking and to consider all the possible factors affecting the quality, what's more, in case that our products has been found a problem at the customer's production, we have the stocked ones to do the replacement.
The appropriate stock is also a good way to reduce the cost. In busy seasons, we can produce the orders, while in free seasons, we can produce the stock. By this way, the labor source is maximumly used. At the same time, in free season, the materials can be bought at lower price.