Y1 BUSINESS RECAP - OPERATIONS INVETORY CONTROL CHARTS
- Created by: ameliab2001
- Created on: 05-11-21 11:05
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- inventory control charts
- buffer stock: the minimum amount of stock a business wants to hold to ensure production can continue
- if supplies are delayed or not delivered on time then this can cause a business to use its buffer stock for as long as possible
- lead time: how long it takes from an order being placed with suppliers to it arriving
- the re-order level: the level of stock when a new order must be placed
- depends on buffer stock, lead time and rate materials are used
- re-order quantities: the amount a manager will reorder of a product
- usage rates can be faster than usual if demand is up
- technology and inventory
- electric point of sale scanners enable stock levels to be updated so the business knows what items need reordering and what quantities
- communication links with suppliers make JIT possible, more efficient as no unwanted products
- matching supply to demand
- employing a flexible workforce: part-time and temp staff help meet sudden peaks in demand
- queuing systems/ waiting lists: Porsche do this
- outsourcing production: e.g. subcontracting
- outsourcing: occurs when a business uses another provider for goods/ services
- enables use of specialist skills and services > better quality... increases capacity
- if supplier quality is poor this can affect the business reputation. they may also be held accountable if their supplier has unethical practices.
- buffer stock: the minimum amount of stock a business wants to hold to ensure production can continue
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