Managing stock Flashcards
benefits of holding stock
businesses can meet unpredicted surges in demand
businesses can replace damaged goods
businesses can receive discounts for bulk buying
limited problems
benefits of holding no stock
costs of not having to store stock
less chance of damaged or stolen stock
employees can focus on tasks other than managing stock
can reduce costs of production, which makes products pricing more competitive.
what is quality control
is seen as one part of the chain of the production. a quality controller will examine and/ or test for quality once a product has been made.
what is quality assurance
involves focusing on quality at every stage of the production process. Everyone is involved and is responsible for contributing towards the achievement of a quality standard. As a result there should be zero defects.
the benefits of good quality
can charge premium price
good quality builds strong brand image
good quality is closely linked to meeting customer needs
quality is a way of differentiating a product
quality assurance checklist
have the quality as the focus of every focus
involve customers and suppliers at the design stage
aim for zero defects
have quality as the responsibility of every employee
have managers who ensure there are systems in place to assure quality
make quality a part of the culture, what everybody aims for
what is JIT
just in time- stock control management system where stock is delivered only when it is needed by the production system so no stock is kept by the business. For JIT to work the business must have good relationship with the suppliers . beneficial as they don’t need a place to store them , can be taken straight to the factory floor.
benefits and negatives of JIT
the benefits of reduced warehouse costs must be balanced against the cost of more frequent deliveries and cost purchasing economies and scale from bulk buying discounts
what is just in case
the just in case method of stock control is best explained using a diagram called a bar gate stock graph. Holding stock incurs warehouse storage costs and ties up working capital
what is working capital
the capital of a business which is used in day to day operations
