managing inventory and supply chains Flashcards
what are the three types of stock?
- raw material
- work in progress
- finished goods
define mass customisation
when a firm produces a large quantity of a product but still allows for individual customer preferences to be met
what is outsourcing?
when a firm uses an outside supply to provide goods or services it needs
what is sub contracting?
when a business assigns a task to another business
define offshoring
when a firm moves some or all of its business activities to another country- this can include outsourcing and sub-contracting
explain what part time staff are
staff who are employed by a firm on a permanent basis but work less than 15 hours a week
what are temporary staff?
staff who are employed by a firm for a limited period, who can either be full or part time
what’s an inventory control chart?
a diagram which is used to show the level of inventory over a period of time
what is lead time?
the time taken from a customer ordering a good and the firm delivering it
what are re-order levels?
the inventory level at which an order for more supplies is placed
what’s buffer inventory level?
the minimum level of stock held by a business
define re-order quantity
the number of goods purchased from a supplier on a particular order
what 6 factors influence the choice of supplier?
- quality
- cost
- flexibility
- reliability
- frequency
- payment terms
what are the two approaches to managing their relationships with suppliers?
competitive/non-partnership
collaborative/partnership
give two advantages of a competitive approach?
- low costs
- delaying payments- good cash flow
