stock control

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stock
raw materials, work in progress and fully finished products
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stock control
process if making sure the optimum (correct) level of stock is held, so that demand can be met, whilst keeping costs of holding stock at a minimum
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buffer stock
stock held as protection in case of a reduction in supply
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lean production
a system of production that tries to minimise waste. this helps to cut costs
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JIT (just in time)
a stock control system where stock arrives as and when needed. it reduces the need to hold large amounts of stock
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stock control diagram
maximum level/stock, re order level, minimum level/buffer stock, lead time and re order quantity
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disadvantages of buffer stock
holding buffer stocks means more space required which can increase storage/ warehousing costs
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disadvantages of buffer stock
higher costs may lead to charging higher prices. higher price means loss of competitiveness, lower profit margins
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advanatges of JIT
holding less stock saves costs
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advantages of JIT
space used for stock is freed up and can be used for production
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disadvantages of JIT
might not benefit from bulk buying
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disadvantages of JIT
if suppliers let the business down e.g. stock arrives late, this can disrupt production
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waste minimisation
transport, stock, defects, resorces
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benefits of lean production
reduces waste materials
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benefits of lean production
reduces storage costs
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benefits of lean production
reduces risk of sales rejections
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drawbacks of lean production
if a supplier is unreliable it can halt the production process
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Other cards in this set

Card 2

Front

process if making sure the optimum (correct) level of stock is held, so that demand can be met, whilst keeping costs of holding stock at a minimum

Back

stock control

Card 3

Front

stock held as protection in case of a reduction in supply

Back

Preview of the back of card 3

Card 4

Front

a system of production that tries to minimise waste. this helps to cut costs

Back

Preview of the back of card 4

Card 5

Front

a stock control system where stock arrives as and when needed. it reduces the need to hold large amounts of stock

Back

Preview of the back of card 5
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