stock control 4.0 / 5 based on 1 rating ? Business StudiesFinancial PlanningASEdexcel Created by: aleyshea darCreated on: 06-03-16 11:04 stock raw materials, work in progress and fully finished products 1 of 17 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 2 of 17 buffer stock stock held as protection in case of a reduction in supply 3 of 17 lean production a system of production that tries to minimise waste. this helps to cut costs 4 of 17 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 5 of 17 stock control diagram maximum level/stock, re order level, minimum level/buffer stock, lead time and re order quantity 6 of 17 disadvantages of buffer stock holding buffer stocks means more space required which can increase storage/ warehousing costs 7 of 17 disadvantages of buffer stock higher costs may lead to charging higher prices. higher price means loss of competitiveness, lower profit margins 8 of 17 advanatges of JIT holding less stock saves costs 9 of 17 advantages of JIT space used for stock is freed up and can be used for production 10 of 17 disadvantages of JIT might not benefit from bulk buying 11 of 17 disadvantages of JIT if suppliers let the business down e.g. stock arrives late, this can disrupt production 12 of 17 waste minimisation transport, stock, defects, resorces 13 of 17 benefits of lean production reduces waste materials 14 of 17 benefits of lean production reduces storage costs 15 of 17 benefits of lean production reduces risk of sales rejections 16 of 17 drawbacks of lean production if a supplier is unreliable it can halt the production process 17 of 17
Comments
No comments have yet been made