Managing Stock (2.4.3) Flashcards
What is Under-utilization?
When resources or assets are not fully utilized to their maximum capacity.
Examples of Under-utilization
-Idle Workers
-Capital Spare Capacity
What is Over-utilization?
Overutilization refers to a situation where an employee’s workload exceeds their capacity, based on the hours they are contracted to work.
Examples of Over-utilization
-Overtime
-Stretched resources
What is Stock?
Anything that a business holds that goes into making a product or service.
What are the three types of stock?
-Raw Materials
-Semi-Finished Products
-Finished Products
What is a Bar Stock Graph good for? What happens if don’t have it?
Great for mapping out stock level and never leaving without products to sell. No produce= unhappy customers= Bad reviews= Damage Brand Loyalty= Sales decrease due to word-of-mouth of bad sales
What are the 4 parts of the Bar Stock Graph?
-Maximum Stock Level
-Minimum Stock Level
-Re-Order Level
-Lead Time
What is the Maximum Stock Level?
Total amount of stock a business can hold at one time
What is the Minimum Stock Level?
Lowest amount of stock a business should hold
What is the Re-Order Level?
The point at which new stock will be ordered
What is the Lead Time?
The time it takes for the new stock to arrive
What are the Two Methods of Stock Control?
-Just-In-Time
-Just-In-Case
What is Just-In-Time?
System of production that enables a firm to produce only what is required, in correct quantity and at correct time. Zero stock is held and materials as and when needed.
What are the advantages of Just-In-Time?
-Reduced Space needed
-Smaller Investment
-Waste Elimination/Reduction
-More Output
-Lower Unit Costs
-No risk of out-of-date stock
