inventory control

Question 1

what is inventory control

Answer 1

involves holding minimal levels of stock but being to satisfy the demand of consumers

Question 2

good standards of inventory control

Answer 2

meets demands so don’t refuse customers making sure the come back
-avoid cash flow-ensuring large stocks aren’t hold for long times this avoids cash being tied up

Question 3

poor standards of inventory control

Answer 3

out of date/obsolete stock build up causing loss of money or selling it at a reduced price
lose customers if there is not enough stock so they go elsewhere
wasteful use of businesses finances

Question 4

batch control

Answer 4

used for batch production
a business ensures they have right levels of inventory to produce

Question 5

just-in-time

Answer 5

goods produced just in time to meet customer demands

Question 6

minimum inventory control

Answer 6

is where business establishes a minimum stock level and once reached new stock is ordered

Question 7

first in first out

Answer 7

where a business rotates its stock so oldest is sold first followed by stock with more recent dates. this method is essential where products are premishable or date limited