Stock Management & External Standards

Question 1

3 benefits of holding stock?

Answer 1

• Meet customer demand
• Cole with fluctuations
• Cost savings if buying in bulk (economies of scale)

Question 2

3 Problems with holding stock?

Answer 2

• Storage Costs
• Depreciation Cost
• Security Costs

Question 3

What are the parts of Stock Control Charts called?

Answer 3

• Maximum stock level
• Minimum stock level
• Re-order Level (when to start re-ordering)
• Buffer Stock (‘Spare’ Stock)
• Lead Time (Time it takes for delivery to arrive)

Question 4

What is the equation for calculating average levels of stock?

Answer 4

(Max Level + Min Level) / 2

Question 5

What does LIFO mean? And what is it?

Answer 5

Last In First Out

Is a stock control method

Question 6

What does FIFO mean? And what is it?

Answer 6

First In First Out

Is a stock control method

Question 7

What does EPOS mean? And what is it?

Answer 7

Electronic Point of Sale

It is a stock control method and lets people pay for goods and services electronically

Question 8

What is Kanban and what is it?

Answer 8

Is a stock control method which automatically re-orders the minimum amount of stock needed

Question 9

Give 3 different examples of Standards?

Answer 9

• British Standards (BS)
• European Standards (EN)
• International Standards (IS)

Question 10

British Standards Institution [……….] business that have adopted certain quality procedures

Answer 10

Rewards

Question 11

What is the most common standards procedure?

Answer 11

BS 5750

Question 12

What is the reward for business passing passing the BS 5750?

Answer 12

Businesses can show the BS symbol

Question 13

What are the European Standards?

Answer 13

Documents that have been ratified with the European Union

Question 14

What are some effects of quality on business Stakeholders?

Answer 14

• Customers - More satisfies with the product
• Staff - Are happy to be selling high quality product and are more motivated
• Business Owners - Have to spend more money to get products, higher demand so increased dividends
• Suppliers - Costs go up
• Competitors - Gets Better because the business has a USP

Question 15

Evaluative point of External Standards?

Answer 15

• Are Standards over zealous? (Too much)
• is this an unnecessary burden? (Time + Money)
• Are they restricted on trade?

Question 16

What is Benchmarking?

Answer 16

When you compare yourself to a competitor who you consider is the best

Question 17

Why is Benchmarking used?

Answer 17

Because it can improve its own practises

Question 18

Benchmarking improves a businesses own practises. What will happen?

Answer 18

• Costs may be reduced

- But Quality could be improved

Question 19

What are the stages of successful Benchmarking?

Answer 19

• Decide which products or processes are to be benchmarked
• Be aware of the existing processes in the economy
• Conduct an analysis of those operating ‘best practises’

Question 20

How do you calculate Wastage Rate?

Answer 20

Rejects / Output X 100

Question 20

What does Zero Defects mean?

Answer 20

Where the system is so efficient there is a guarantee of zero mistakes

Question 20

What are Quality Circles?

Answer 20

Team of workers review last weeks performance and suggest improvements