Topic Seven, Part 3 - Stock Control Flashcards
What are raw materials?
All the stock or components to produce a finished good
What are work-in-progress stock?
Components are partially assembled to produce finished good
What are finished goods stock?
The completed product
How is satisfying demand a benefit of holding stock?
More stock to satisfy the demand
How is coping with fluctuations in demand a benefit of holding stock?
Holding stock allows a business to capitalise if demand surges
How is buffer stock a benefit of holding stock?
Insufficient stock means production stops, which costs thousands
How are economies of scale a benefit of holding stock?
Cost savings due to buying in bulk
Why are there storage costs of holding stock?
Warehouse space is more expensive
Why are there opportunity costs of holding stock?
Money spent on stock could be used elsewhere
Why are there depreciation costs of holding stock?
Stock may deprecate in value over time
Why are there security costs of holding stock?
Require security to care for stock
Why are there administrative costs of holding stock?
Costs of having stock delivered
What are the costs of holding stock?
The cost to insure lots of stock
What are stock control charts?
Charts to monitor stock levels
FURTHER REVISION ON UNDERSTANDING STOCK CONTROL CHARTS
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