3.4.5 inventory and supply Flashcards
what are some examples of operational objectives?
speed of response
dependability
flexibility
mass customisation
what is inventory?
the goods or stock that a business holds
what is an inventory control chart used for?
to manage inventory
what can inventory control depend on?
the relationship with a business’ supplier
what is buffer level of inventory?
buffer stock is held to ensure that production and supply to customers can continue in an emergency
what is lead time?
how long it takes from an order being placed with a supplier and the items arriving.
what are re-order levels?
the level at which a new order must be placed for supplies
what are re-order quantities?
the amount a manager orders of a particular item
influences on choice of supplier:
cost of materials
dependability
financial security
communication
IT systems
quality of supplies
flexibility
ethical considerations
what is outsourcing?
when a business uses an outside supplier for some of its goods and services
what are some benefits of outsourcing?
enables the business to make use of specialist skills and services
it can increase capacity
what are some drawbacks of outsourcing?
business costs and quality could suffer
business could be held accountable for the actions of their suppliers
