2/10 - Stock Control Flashcards
1
Q
What is buffer stock?
A
A small amount of raw materials or finished goods that act as a backup.
2
Q
How does JIT work?
A
JIT relies on small frequent deliveries of materials from suppliers being delivered without delay or problems.
3
Q
What are benefits of JIT?
A
- Eliminates costs of holding stock
4
Q
What are some issues with JIT?
A
- Danger of production line being stopped if a delivery is missed
- Loss of bulk discount?
- Increased pollution
- Suppliers must be willing to deliver frequently
- Suppliers may need to relocate nearer the company
