Management Of Operations

Question 1

Define centralised storage

Answer 1

Storing stock in one place

Question 2

Define Decentralised Storage

Answer 2

Storing stock in more than one location

Question 3

State the advantages of centralised storage

Answer 3

Maintains security is easier in one location than several

Procedures for receiving, issuing and distributing stock are easier to implement consistently across the organisation

Question 4

State the disadvantages of centralised storage

Answer 4

A dedicated central area for storing stock could be expensive to set up and maintain

Staff could waste time going to and from the centralised storage area (it might be some distance from their normal location)

Question 5

State the disadvantages of decentralised storage

Answer 5

Storage space in several locations is required

Security is more difficult to maintain across a number of locations compared to one (and also might be more expensive)

Question 6

State the advantages of decentralised storage

Answer 6

Staff can access stock more easily rather than having to go to a centralised area

Less chance of stock going to waste or deteriorating

Question 7

Define “Just In Time” stock management

Answer 7

JIT is a method of stock control