1386535
0
Description
Managing Stock
1
2 re-order level
2.1 when the stock level
gets to this point, the
manager/worker will
order more stock
3 maximum
stock levels
3.1 largest amount of stock
that a business has decided
to keep at any one time
4 types of stocks
4.1 stocks of materials
which have been
bought buy the
business
4.2 stocks of
materials that
have been
semi-finished by
the producer
4.3 stocks of finished goods
5 stocks
5.1 are: materials that a
business holds. some could
be materials waiting to be
used in the production
process and some could be
finished stock waiting to be
delivered to customers
6 Minimum
or buffer
stock levels
6.1 lowest amount of
stock that a business
can hold
6.1.1 if stocks fall below this level,
business may have trouble
filling in unexpected orders
7 Just In Time (JIT)
7.1 A stock management
system where stocks are
only delievered when
needed. no stocks held
by the business
8 disadvantages of holding stock
8.1 cost
8.1.1 less stock =
less costs
8.2 production needs
8.2.1 holding too little stock
can result in loss of
production and sales
8.2.1.1 not enough stockso had to
turn the customer away.
8.2.2 suppliers might be late
8.2.2.1
9 advantages of holding stock
9.1 Price
9.1.1 Buying in bulk
9.1.1.1 cheaper to buy
a lot of
products all at
once
9.2 just in time
9.2.1 have to hold any stock
9.2.1.1 reduce total costs
10 Topic 3.2 Revision
