Procurement Flashcards
1
Q
What is ‘Just-In-Case’ production?
A
Holding extra stocks just in case there is a big order
2
Q
What is ‘Economies of Scale’?
A
Buying supplies in bulk is cheaper per unit than not doing it
3
Q
What are the Advantages of Just-In-Case production?
A
Can meet deadlines for sudden increases in demand
Less problems with suppliers
Economies of Scale makes it cheaper
4
Q
What are the Disadvantages of Just-In-Case Production?
A
Higher costs because of storage
Unsold stocks might go out of date
Stocks might not be sold
5
Q
What is ‘Procurement’
A
Getting a contract with a selected supplier
6
Q
What is a ‘Supply Chain’?
A
All the factors that are involved with Business Production
7
Q
What are ‘Logistics’
A
The Movement of Goods, Services, Information and Money through the Production Process
