stock control, lean production&comp adv

Question 1

what is just in case? (JIC)

Answer 1

ordering more than needed just In case 💪🏼

Question 2

what Is just In time? (JIT)

Answer 2

ordering stock when needed- just in time for it to be sold!

Question 3

what is buffer stock?

Answer 3

the minimum amount of stock a business holds to ensure they don’t run out

Question 4

what is lead time?

Answer 4

how long the order takes to arrive from when the order was placed

Question 5

what is the re order level?

Answer 5

the point when you re order stock

Question 6

what is lean production?

Answer 6

lean production consists of trying to minimise waste by eliminating the 4 deadly wastes

Question 7

adv and disadv: JIT

Answer 7

✅don’t have to pay for storage
❌more deliveries have to be made - greater transport costs
❌any delays puts the business at risk

Question 8

adv and disadv: JIC

Answer 8

✅prepared for random surges in demand
✅benefit from economies of scale - buying in bulk
❌some products are perishable - could go out of dat being held in stock - wastage
❌higher storage costs

Question 9

what are the 4 deadly wastes?

Answer 9

• over production
• waiting time
• transportation time
• excess stock