3.2 The Role of Procurement Flashcards
What is the Just-in-time stock control method?
Where the business does not store any goods
They only order when they have a sale
A business would need to have a good relationship with its ________ when using the Just in time Stock control method.
Suppliers
What are some advantages of using a Just-In-time stock control method?
More storage space
Products will be fresher
How does the JIT stock control method work?
Small but frequent deliveries whenever they sell products
What are the Disadvantages of the JIT stock control method?
Unable to use bulk-buy discounts
Hard for a business to react to unexpected changes in demand
What is the Just in Case stock control method?
When a business always makes sure they have more than enought stock
What are the advantages of JIC stock control method?
Eligible for bulk-buy discounts
Reduce chances of running out of stock
What are the disadvantages of JIC stock control method?
More storage space is needed
Chance thr products dont sell
What are the three factors a business needs to consider when selecting a supplier
Cost
Quality
Reliability
What does procurement mean?
Getting the right suppliers from the right suppliers, at the right price, at the right time
What does logistics mean?
The process at which thr products are delivered efficiently
