2.4.3 Stock Control

Question 1

procurement

Answer 1

the process of finding and buying goods from outside sources focusing on getting the best value through sourcing and negotiation

Question 2

lean production

Answer 2

manufacturing approach focused on minimizing waste and maximizing efficiency by streamlining processes and improving workflow

Question 3

just in case management (JIC)

Answer 3

where businesses keep higher stock levels to prepare for unexpected demand or supply disruptions. This ensures a buffer of inventory is available.

Question 4

just in time management (JIT)

Answer 4

inventory strategy that aims to reduce waste by receiving goods only as they are needed in production. This approach minimizes inventory costs and storage needs

Question 5

waste minimisation

Answer 5

process of reducing the amount of waste generated during production or operations, aiming to improve efficiency and decrease environmental impact.

Question 6

stock

Answer 6

refers to the inventory and materials a business holds for sale or production.

Question 7

stock control

Answer 7

a
process of managing and overseeing inventory levels to ensure that a business has the right amount of stock available to meet demand while minimising costs.

Question 8

buffer stock

Answer 8

extra inventory held to prevent stockouts and ensure a business can meet unexpected demand or supply chain disruptions.

Question 9

lead time

Answer 9

total time taken from placing an order for goods or services until they are received and ready for use

Question 10

advantages of JIT management

Answer 10

minimizes the amount of stock held, lowering storage and holding costs.

Less money is tied up in inventory

Streamlined processes lead to faster production

Focus on quality control reduces defects

Question 11

disadvantages of JIT management

Answer 11

relies heavily on suppliers for timely deliveries

Minimal inventory levels can lead to stockouts

Reduced inventory means less protection against fluctuation

if not managed well, JIT can lead to higher costs

Question 12

impact of JIT on supplier - business relationships

Answer 12

encourages closer collaboration between businesses and suppliers

Regular communication is essential for JIT, leading to better alignment on delivery schedules

Businesses become more reliant on their suppliers for timely deliveries,

JIT can lead to shared risks

JIT emphasizes quality, prompting suppliers to maintain high standards

Question 13

types of companies that use JIT stock management

Answer 13

manufacturing companies
retailers
food and bev industry
e- commerce
pharmaceutical companies
textile and apparel industry