Purchasing Flashcards
1
Q
Types of stock
A
Raw materials
Work-in-progress
Finished goods
2
Q
Just-in-time
A
Business does not keep stock. Goods are ordered as and when they are needed.
3
Q
Advantages of just-in-time
A
No cost of holding stock as materials go straight onto the production line
Products are not made unless an order has already been placed
4
Q
Disadvantages of just-in-time
A
Advantages of bulk buying may be lost
If suppliers do not deliver on time the manufacturer’s reputation may be damaged
