Stock Control Flashcards
What is Stock control?
Stock control is the control of the flow of stock in a business, it concerns the ordering and management
What are buffer stocks?
Buffer stocks are stocks which are held in case there is unforeseen rise in demand or a problem with supply
Advantages of buffer stocks
Holding buffer stocks means that a business can easily respond to changes in consumer demands
Disadvantages of buffer stock
The cost of storage is high, a business will need to pay for premises, staff and security of the stock
What is Just-in-time delivery?
Just-in-time means that a business does not keep stocks of parts in a warehouse
Instead they order the parts and get them delivered same day from the supplier
Advantages of just in time
As parts are ordered as they are needed there is no wastage
Disadvantages of just in time
The business won’t be able to meet unpredicted surges in demand
• The business won’t be able to quickly replace damaged parts
What is Waste minimisation?
Waste minimisation can help improve efficiency and reduce the unit costs of production
What is Lean production?
The aim is to reduce resources used in production, to use less of everything
