unit 4 - bar gate stock graph

Question 1

we usr this graph to manage

Answer 1

stock levels

Question 2

y axis

Answer 2

stock level e.g tonnes

Question 3

x axis

Answer 3

time -

Question 4

what do we have to be carefil with in the x axis

Answer 4

using the correct unit - i.e weeks, months, hours

Question 5

where is the max stick level

Answer 5

at the top of the bar bit

Question 6

what do the downward soping line show

Answer 6

stock is being used overtime

Question 7

what soes the vertical linehsow

Answer 7

a delivery has happened

Question 8

what is buffer stock

Answer 8

bare mini stock level a bs wants to hold

Question 9

where do we find the buffer stick level

Answer 9

looking at bottom of points

Question 10

to calculate lead time what do we need to know

Answer 10

reorder level

Question 11

what is reorder level

Answer 11

point when stock fall below level you must make an order

Question 12

how do we find reorder level

Answer 12

draw line from when it hits it

Question 13

how do we calculate lead time

Answer 13

reorder level day - vertical line

gap between vertica lines

Question 14

how do we calculate delivery size

Answer 14

measure distance of vertical line

Question 15

what is max capapcirty

Answer 15

maximum amount how much company can hold in stock levels

Question 16

if my max capapcity is alrge theoretically i could get

Answer 16

EOS - purchasing

Question 17

why could i get purhasing EOS

Answer 17

you make big order cause yuove got big capapcity you can negotiate loewr prices

Question 18

reorder level acts a

Answer 18

trigger poitn

Question 19

if you have a higher or uncertain lead time what does htis mean

Answer 19

require a higher reorder level

Question 20

what happens if stock runs out or their is a chance

Answer 20

to avoid this business will khave a higher reorder elvel

Question 21

how does demand for teh product affect stoc reordering

Answer 21

higher demand means hger reorder levels

Question 22

adavantages of holding low stock 4

Answer 22

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

Question 23

what are the advantages of holding high stock

Answer 23

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