Unit 5.5

Question 1

Stock + Supply

Answer 1

Managing the supply chain + stock levels are important for OM.

Question 2

Conflicting elements

Answer 2

Cost minimisation = to remain competitive.
Reliable supply of products = to satisfy customer demands

Question 3

Cutting costs

Answer 3

by reducing excess capacity or reducing stock levels - can lead to increased risks of supply bottlenecks (shortages) and disappointed customers

Question 4

The supply chain process

Answer 4

To get a g+s from the supplier to the customer, The planning and management of all activities involved in sourcing, procurement, stock + logistics management

Question 5

Stock (INVENTORY) control

Answer 5

Hold stocks in 3 distinct forms:
-Raw materials and components
- Work in progress
- Finished goods

Question 6

Just-in-case (JIC) stock management

Answer 6

Holding large amounts of stock to sell or produce which is more than they expect to sell.
:) customer satisfaction, keep up w/ demand, increased competitiveness
:( higher storage costs, cash flow (larger orders cost more money), inventory spoilage