Managing Stock - Unit 3 Flashcards
1
Q
What is the maximum stock level?
A
The maximum level of stock that the business is able to hold.
2
Q
What is the re-order level?
A
When new stock will be ordered by the business.
3
Q
What is the buffer stock (minimum level)
A
The lowest amount of stock the business will hold, it is a safety precaution incase there is a surge in demand.
4
Q
What is Just In Time stock control?
A
Where stock is delivered only when it is needed, so no stock is kept by the business.
5
Q
What is Just In Case stock control?
A
Having a backup of stock at all times, incase there is a surge of demand
6
Q
Name at least 2 benefits of holding stock:
A
- Businesses can meet unpredicted surges in demand
- Businesses can replace damaged goods
- A business can receive discounts for bulk buying
- Limited problems
7
Q
Name at least 2 benefits of holding little or no stock:
A
- Cost saving
- Less chance of damaged or stolen stock
- Employees can focus on other tasks rather than managing stock
