Inventory Management Flashcards
What are the 3 types of stocks
Work in progress→incomplete products in the production process
Raw material→ things used in production process
Finished goods → complete products
Define inventory management
Goods + materials required → to allow supply and production of products to customers
What are the affects of holding too much stock
Increases opportunity cost
Increases storage cost
Risk of wastage+ obsolescence
Increase insurance
Can create cash flow problems
What happens if you donot hold enough stock
Damages BST reputation
Loss of sales → loss of customers
Special orders → expensive
Longer lead time for customers
Idle production resources
What are the benefits of holding stock
What does it mean by reduces risk of lost sales
If bst
How does holding stock allow continuous production
How is there no need for special orders from suppliers as well as reduction in cost when holding stock
What are the 3. Stock management techniques
How many points does a stock control chart have
5.
Define the term buffer inventories
What does the term supply chain management mean
How is supply chain management effectively executed
Mention the benefits of effective supply chain management
Define JIT stock management and its features
What are the advantages of JIT
What are the disadvantages of JIT
What are the requirements for JIT
Define JIC production method
What are the advantages of JIC
What are the disadvantages of JIC
What can be the evaluation of JIT when it comes to
Small businesses
Global inflation And
Tertiary sector bst
