Stock Control

  • Created by: Izzie
  • Created on: 20-05-17 15:59
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  • Stock Control
    • Stock's a current asset held by businesses to help meet demand
    • Amount of stock held depend on:
      • Business' attitude to risk
      • Speed of change in market
      • Nature of product (perishable)
    • Stock control diagram= a management tool used to control & monitor the flow of stock
      • Gives visual representation of...
        • Lead Time
        • Re-order Level
        • Buffer Level of Stock
        • Re-order Quantities
    • Just In Time Business HAS buffer stock
    • Just in Case business DOESN'T HAVE buffer stock
    • Implications of poor stock control:
      • Supply is in excess of demand
      • Supply doesn't meet demand
    • Lean Production
      • Working practices from Japan that focus on cutting waste while maintaining / improving quality
      • Includes techniques like...
        • Just In Time management
          • Used to minimise stock holding at each production process stage to lower costs
        • Kaizen
          • Focuses on small, but frequent, improvements in every aspect of production process
    • Efficient stock control can reduce waste leading to a competitive advt.
      • REDUCE WASTE: Less obsolete / damaged stock, low costs of holding stock
      • COMPETITIVE ADVT:Better able to meet customer needs, cost savings can be passed on in form of lower prices


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