Business Unit 3.2

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  • Created on: 18-04-18 18:33
Managing Stock
Managing the materials that the business holds in the most efficient and effective way.
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Maximum Stock Level
The maximum amount of stock a business can hold.
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Re-order Level
The point at which new stock must be re-ordered by the business.
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Buffer Stock
The minimum level of stock the business holds. It is a just incase method and acts as a saftey net incase of a surge in demand.
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Just in Time Stock Control
A stock management system where you order what you need as you need it. No stock is kept by the business.
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Benefits of a Business Holding Stock
Businesses can meet any surges in demand. Business can replace damaged goods quickly. Discounts on bulk buying. Limited problems.
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Benefits of Holding Little or No Stock
Reduced costs as no storage space is needed. Less chance of damaged or stolen stock. Employees can focus on tasks other than stck management. Reduced costs of production, making more competitive pricing.
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Quality Control
A part of the chain of production. A quality controller will examine and/or test for quality at every stage has been made.
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Quality Assurance
Focusing on quality at every stage of production. This means everyone is involved and is resonsible for the quality achievement of the product's standards. There should be zero defects becuase of this.
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Benefits of Good Quality
Aloows a premium price to be charged. Meeting more customer needs. Product differentiation. Less waste due to less faulty products.
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Productivity
Outpust per worker over a set period of time. Total output/Number of workers=Productivity
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Methods of Increasing Productivity
Train employees better. Invest in better equipment. Introduce more effective work practices. Work overtime. Motivate employees.
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Methods of Reducing Costs
Cheaper suppliers. Better design of product. Cheaper labour costs. Cutting overheads. Streamlining the production process. Relocating.
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Problems with Bad Customer Service
Low customer satidfaction. Poor brand image. Inability to differentiate a product and gain competitive advantage. Cannot charge a premium price. Fall in sales and profits. No repeat purchase or customer loyalty.
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Sale of Goods Act
Relates to the products and services being sold by businesses. All products must: Be of merchantable quality, match thier description and be fit for purpose.
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Trade Descriptions Act
Relates to how businesses deal with and sell to customers. All businesses must not: Give false information, fail to give important information or act aggressively by forcing a sale.
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Drawbacks of Consumer Protection Laws
Business must know the law and keep up to date. Laws can restrict businesses operating as they would wish to. Businesses have to comply with laws by changing their products and practices and this can be costly. Bad publicity if not followed.
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Benefits of Consumer Protection Laws
A business that follows the law is less likely to recieve fines or be sued by customers. Meeting consumer protection laws can improve a business's brand image. Improved relationships with stakeholders. Good publicity is followed.
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Design Mix
Function, cost, apperance
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Function
This is about how well a product does what it does what it is meant to do.
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Cost
Closely linked to price but NOT PRICE. Businesses try to keep costs low, but improving the functionality and apperance can be exoensive. this is why costs must be controlled and monitored.
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Appearance
Style and elegance. this is one of the most important things for many products.
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Research and Development
Researching new technologies, techniques and processes that may improve a product
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Prototypes
A working model of a possible finished product that can be trailed and tested.
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Testing
Testing for safety and durability, and collecting market research information.
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Other cards in this set

Card 2

Front

The maximum amount of stock a business can hold.

Back

Maximum Stock Level

Card 3

Front

The point at which new stock must be re-ordered by the business.

Back

Preview of the back of card 3

Card 4

Front

The minimum level of stock the business holds. It is a just incase method and acts as a saftey net incase of a surge in demand.

Back

Preview of the back of card 4

Card 5

Front

A stock management system where you order what you need as you need it. No stock is kept by the business.

Back

Preview of the back of card 5
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