Flashcards

Procurement and + INFO

George Benson English 5 cards

Cards in this deck (5)

1What is just-in-case stock control (JIC)?Just-in-case (JIC) stock control is where a business holds enough stock for any possible increase in production or sales.
2What is an advantage and disadvantage of JIC stock control?A benefit is that the business can buy stock in bulk leading to lower prices, fewer deliveries and lower costs, called purchasing economies of scale.
A drawback is the approach can lead to higher costs for storage and wasted stock, potentially lowering profits.
3What is an advantage and disadvantage of just-in-time stock control?Low stockholding costs as it minimises the stock held
Buy small quantities so less likely to get bulk discount (economies of scale); more transport costs for more frequent deliveries
4What is the supply chain?The supply chain refers to all the businesses, people and activities that take part in the production processes from the start until it gets to the customer.
5Why are suppliers so important to a business operating either system of stock control?Suppliers delivering products on time means the business can meet the needs of customers – see what happens when it goes wrong, as well as quick delivery and good quality products which are reliable to sell.