unit 4 - bar gate stock graph Flashcards
we usr this graph to manage
stock levels
y axis
stock level e.g tonnes
x axis
time -
what do we have to be carefil with in the x axis
using the correct unit - i.e weeks, months, hours
where is the max stick level
at the top of the bar bit
what do the downward soping line show
stock is being used overtime
what soes the vertical linehsow
a delivery has happened
what is buffer stock
bare mini stock level a bs wants to hold
where do we find the buffer stick level
looking at bottom of points
to calculate lead time what do we need to know
reorder level
what is reorder level
point when stock fall below level you must make an order
how do we find reorder level
draw line from when it hits it
how do we calculate lead time
reorder level day - vertical line
gap between vertica lines
how do we calculate delivery size
measure distance of vertical line
what is max capapcirty
maximum amount how much company can hold in stock levels
if my max capapcity is alrge theoretically i could get
EOS - purchasing
why could i get purhasing EOS
you make big order cause yuove got big capapcity you can negotiate loewr prices
reorder level acts a
trigger poitn
if you have a higher or uncertain lead time what does htis mean
require a higher reorder level
what happens if stock runs out or their is a chance
to avoid this business will khave a higher reorder elvel
how does demand for teh product affect stoc reordering
higher demand means hger reorder levels
adavantages of holding low stock 4
lower stock holding costs e.g storahe
lower ris of stock obsolence
less cash tied up in working capital - so can beused elsewhere in the busienss
aids with operaitng lean
what are the advantages of holding high stock
production is fully supplied which prevents delays
less likelihood of stock outs - helps business be more reliable in consumers eyes
better able to handle unexpected changes ind emand or need for higher output
potential for lower unit costs through purchasing eos
