26c : Stock Controle & Just In Time (jit)

Question 1

What are stocks

Answer 1

Stock are :

• Maw materials and other components: things that go into the production process
• Work in progress: products that are not set finished- but where the production process has started
• Finished goods: products that have been completed

Question 2

What happens when there is a stock out

Answer 2

• Loss of production : staff still being paid but no products being produced

• Late deliveries,lose of sales

• Loss of customers : will they come back next time it deliveries are late

Question 3

What are the advantages and disadvantages of higher stock levels

Answer 3

Ad :
• Can meat sudden changes in demand
• Can take advantage of bulk being economies of scale

Dis :
• Costs of storage
• Money tied up in stocks not being used else where in business

Question 4

What are butter stocks

Answer 4

• The amount of stock that heels he held older sudden changes in demand

Question 5

What is JIT (Just in time)

Answer 5

Where stocks are delivered only when they are needed for production

Question 6

What are the advantages and disadvantages of JIT

Answer 6

AD :
• Cost of stock holding is reduced
• Factory space can be freed up for more productive use

Bis:
• Advantage of by in in bull is lost
• Difficult he cope with sudden increase in demand
• A lot depends on the flexibility of suppliers