2.4.3 stock control Flashcards
what are the consequences of poor stock control?
- opportunity costs
- shrinkage
- financial costs
- too little stock
what is the re-order level?
level at which new inventory will be r-ordered
what is re-order quantity?
the quantity the business will order an item at a given time
what is lead time?
how long it takes from the order being placed with the supplier, to it arriving
define stock control
is the control of the floe of stock in a business
what is lean production?
is an approach to management that focuses on cutting out waste and ensuring quality
what is waste minimisation?
ensures you don’t have any excess stock and keeps your waste low
what is just in time production?
this is where stock levels are kept to a minimum and resources and capital are freed up
what is buffer stock?
when you have a minimum amount of stock needed. ensures business can operate for a short while
what is a finished product?
goods that have completed the manufacturing process but have not yet been sold or distributed to the customer
what are components?
semi finished goods and are used to make finished products
what is personal responsibility?
each worker on a production line is given responsibility for each process he carries out
what is flexible production?
several different models can be produced on the same assembly line
what is design for manufacture?
making the components for the assembly line
pros and cons of just in time production?
\+ reduces capital in stock \+ decreases product defects \+ prevents over production - risk of running out of stock - if a supplier has troubles it can pause the whole production for the business
