inventory management

Question 1

what are 3 advantages of decentralised storage?

Answer 1

• staff can access stock more easily if stock is in different locations rather than going to a centralised area

• there is a reduced chance of stock deteriorating or going to waste. it also spread the risk of it being stolen

Question 2

what are 2 disadvantages of decentralised storage?

Answer 2

• storage space in several locations is required. suitable storage locations might be expensive / hard to find

• security is more difficult to maintain because a number of locations have to be protected compared to one

Question 3

what is decentralised storage?

Answer 3

De-centralised storage is when each department within the organisation is responsible for ordering and storing their own stock.

Question 4

what is centralised storage?

Answer 4

Centralised storage is when a company chooses one central location to store all the stock for the organisation. The stock will be distributed to departments as required from the central warehouse.]

Question 5

what are 2 advantages of centralised storage ?

Answer 5

• maintaining security is easier in one location rather than several

• policies and procedures for issuing, receiving and distributing stoc is much easier to implement consistently throughout he organisation because it is in one location

Question 6

what are 2 disadvantages of centralised storage?

Answer 6

• it could be costly and expensive to maintain and set up an area dedicated for stock eg lighting, heating

• it might be costly and time consuming to send staff to the centralised stock area