Purchasing Flashcards
1
Q
what is stock control?
A
- forecasting stock levels along with closely monitoring stock and reordering when required
2
Q
what is the maximum stock level?
A
- the largest amount of stock a business can store on site
3
Q
what is buffer stock?
A
- the minimum stock level
- the lowest amount of stock a business can store on site while still being able to operate effectively
4
Q
what is lead time?
A
- how long is takes from ordering stock for it to arrib=ve
5
Q
what is the reorder level?
A
- the level of stock at which a new order is placed
6
Q
what is computerised stock control?
A
- holding stock details on computer databases
7
Q
what are 3 advantages of effective stock management?
A
- reduction in working capital, improves liquidity
- improved customer relationships
- less stock wastage
8
Q
what are 3 consequences of ineffective stock management?
A
- damaged reputation
- high costs
- stock may become obsolete
