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Management of Operations > Management of inventory > Flashcards

Management of inventory Flashcards

1
Q

what is purchasing

A

the buying of materials from the supplier

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2
Q

what is inventory

A

the stock items available to use in the production or finished inventor sale to the consumer

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3
Q

what is centralised purchasing

A

one order sent to the supplier for the whole org

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4
Q

what are the advantages of centralised purchasing

A
  • specialised dept
  • cost effective
  • approved supplier
  • range of suppliers
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5
Q

what are the features of effective inventory control

A
  • a trained inventory clerk
  • appropriate inventory levels set
  • regular monitoring inventory levels for usage
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6
Q

what does an inventory clerk do

A
  • make sure the inventory documents are filled in correctly and approved
  • use inventory rotation so old products are used first
  • appropriate stock conditions
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7
Q

what effect does appropriate inventory levels have on the inventory control

A

Prevent problems with over and under stocking

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8
Q

what happens with the regular monitoring of inventory

A
  • a formulae that monitors and calculates the stock
  • best sellers/slow moving inventory identified
  • physical counting of stock is done as well as electronically to get an accurate figure
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9
Q

what are the different inventory levels

A

Maximum
Reorder
Minimum
Buffer

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10
Q

what is the lead time on the inventory level

A

the about of time it takes for the delivery to come after the reorder is placed

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11
Q

what is the buffer inventory

A

excess to use incase order levels are wrong

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12
Q

what happens if levels are too low

A

production may be delayed or stopped due to under stock

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13
Q

what happens if levels are too high

A

overstocking and money is tied up and cannot be used elsewhere

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14
Q

what happens if suppliers change their terms

A

new reorder levels and order sizes may be needed

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15
Q

why is regular monitoring done

A

to ensure inventory levels are still appropriate

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16
Q

what is the purpose of inventory conrol

A
  • anticipate when inventory will run out
  • make sure customer orders aren’t delayed
  • overstocking is avoided
  • inventory control clerk
17
Q

what is JIT

A

Just in time, this involves

  • frequent deliveries
  • small quantities
  • recieved just before it’s needed
18
Q

what does successful JIT depend on

A
  • reliable suppliers
  • constant good quality supplies
  • staff responsible for identifying when stock is needed
19
Q

what is the advantages of JIT

A
  • no funds tied up so can be used elsewhere
  • reduced inventory holding costs
  • can change in trends quicker reducing waste
20
Q

what are the disadvantages of JIT

A
  • production could be effected if transport issues occur
  • more dependent on suppliers
  • loss of bulk buy discounts
21
Q

what are the features of a good storage area

A
  • storage capacity should be bigger than needed
  • provide security
  • use FIFO (rotation)
  • labelled shelves
22
Q

what is centralised storage

A

stored in one area

23
Q

what are the advantages of centralised storage

A
  • improved security control
  • lower storage cost
  • greater efficiency using specialist staff
24
Q

what are the negatives of centralised storage

A
  • staff needing to travel to the storage
  • cost of specialised staff
  • difficult to meet certain needs for departments (CDT)
25
Q

what is decentralised storage

A

different areas

26
Q

what are the positive of decentralised storage

A
  • inventory is nearby if staff need
  • orders for specific depts
  • less waste/deterioration
27
Q

what is the negatives of decentralised storage

A
  • more likely of theft
  • increase the amount of space taken up
  • difficult to get an accurate balance
28
Q

what is positive features of warehouse inventory

A
  • designed to ensure smooth operations
  • located on ground floor to make easier to move things
  • correct storage conditions
29
Q

what are the 2 basic forms of logistics

A
  • production line

- transportation and storage network

30
Q

what are the benefits of good logistical management

A
  • prevent shortages
  • minimise transport costs
  • minimise time taken to obtain materials
  • reduced storage
31
Q

what is scheduling

A

it is the part that coordinates the way resources work together in the process

32
Q

what is the Gantt chart

A

it helps coordinate task or batch completion

Management of Operations (4 decks)

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