2.4.3 Stock control

Question 1

What are some implications of poor stick control?

Answer 1

• storage costs
• opportunity costs (money tied up in stock)
• Spoilage costs
• Unsold stock
• Shrinkage (theft from staff)

Question 2

What are the pros and cons of Just In time production?

Answer 2

Pros:
- Less wastage.
- Reduced costs for storage

Cons:
- May not be able to accommodate demand.
- No eos.

Question 3

How does lean production give a competitive advantage?

Answer 3

• Raise productivity.
• Reduces costs.
• Lowers the number of defective products.
• Speeds up supply time.