Define Floor Stock

Also called back stock.

Define floor stock.

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. 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. Normally lower dollar value backflushed items.

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. It is the portion of inventory that is generally left in boxes in the back storage area until needed up front for display. 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.

While the use of the term is slightly different in retailing than in manufacturing the core concept is.