2.4.3 stock control *

Question 1

stock control definition

Answer 1

a businesses’ attempt to ensure that stock levels are managed efficiently

Question 2

methods to minimise waste

Answer 2

> store inventory appropriately e.g. perishable goods that are refrigerated may last longer.
ordering perishable stock carefully, paying particular attention to forecast demand.
stock rotation- old stock used before new stock
use computerised stock management systems to track all inventory
adjust prices to clear through stock e.g. reduced prices that are close to reaching sell-by date.
dispose of goods creatively e.g. pass on unsold seasonal products to charities or recycle newspaper

Question 3

negative impacts of wasteful scenarios

Answer 3

wastes: time, cost, resources, fuel (delivery driver) , money

Question 4

lean production definition

Answer 4

a philosophy which aims to minimise costs and enhances quality by using a range of waste-saving measures. It aims to produce more using less.

Question 5

competitive advantage from lean production

Answer 5

> higher levels of productivity, reducing labour costs per unit
less space used to hold lower stock levels, reducing fixed costs
higher quality, leading to reputation advantages and greater repeat custom
faster development of new products, allowing the firm to be first to market with new ideas

Question 6

disadvantages of lean production

Answer 6

• very time consuming- not gaining a competitive advantage fast enough to beat competitors
• businesses are often too small or they do not have close enough relationships with their suppliers to make lean production