managing inventory and supply chains Flashcards Preview

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Flashcards in managing inventory and supply chains Deck (22):
1

what are the three types of stock?

- raw material
- work in progress
- finished goods

2

define mass customisation

when a firm produces a large quantity of a product but still allows for individual customer preferences to be met

3

what is outsourcing?

when a firm uses an outside supply to provide goods or services it needs

4

what is sub contracting?

when a business assigns a task to another business

5

define offshoring

when a firm moves some or all of its business activities to another country- this can include outsourcing and sub-contracting

6

explain what part time staff are

staff who are employed by a firm on a permanent basis but work less than 15 hours a week

7

what are temporary staff?

staff who are employed by a firm for a limited period, who can either be full or part time

8

what's an inventory control chart?

a diagram which is used to show the level of inventory over a period of time

9

what is lead time?

the time taken from a customer ordering a good and the firm delivering it

10

what are re-order levels?

the inventory level at which an order for more supplies is placed

11

what's buffer inventory level?

the minimum level of stock held by a business

12

define re-order quantity

the number of goods purchased from a supplier on a particular order

13

what 6 factors influence the choice of supplier?

- quality
- cost
- flexibility
- reliability
- frequency
- payment terms

14

what are the two approaches to managing their relationships with suppliers?

competitive/non-partnership

collaborative/partnership

15

give two advantages of a competitive approach?

- low costs
- delaying payments- good cash flow

16

what are two disadvantages of a competitive approach?

- bad supplier relations and therefore less reliable
- lower priced suppliers may offer poor quality products

17

two advantages of a collaborative approach are...

- strong relations with suppliers as they work together
- discuss plans to come up with best decisions

18

two disadvantages of a collaborative approach

- more expensive
- less independence and input- may lose money

19

what are the four reasons why matching supply and demand can be difficult?

- changes in taste or fashion
- changes in the weather
- marketing activity such as a promotion campaign
- the actions of competitors

20

what are the three main ways of changing supply to meet changing levels of demand?

- hiring part time and temporary staff
- outsourcing
- producing to order (mass customisation)

21

what five factors are the main influences on the amount of inventory held?

- storage costs
- financial costs
- cash flow
- wastage
- opportunity cost

22

what is inventory? (stock)

the items that a firm needs to produce a product or to supply it to customers