Managing Stock Flashcards
(13 cards)
What is just in time
A form of lean production which means inputs arrive and outputs produce just when they are needed
What is just in case
There is always spare stock available
Benefits of JIT
Less storage required
Less stock wasted as no excess stock
Workers are motivated
Drawbacks to JIT
If demand increases stock will be unavailable
High transportation costs due to frequent orders
Receiving stock is dependent on the relationship with suppliers
Benefits to JIC
More possible profit as able to keep up with demand
Discounts due to EOS
Reduced production if delays occur
Drawbacks to JIC
Large amount of storage required
Risk of waste if demands increases
Chance of stock expiring
Lean production
Doing the simple things better
Involving employees in kaizen
Avoiding waste
What is kaizen
Continuous improvement
Advantages of kaizen
Improves efficiency, employees heel valued so higher motivation,improved staff retention,improved quality
What is maximum stock level
Amount of stock a business is able to hold in normal circumstances
What is the re-order level
A business places a new order with the supplier
What is the minimum stock level/ buffer stock level
Lowest level to which a business is willing to allow stock levels to fall
What is lead time
Length of time from the point of stock being ordered from the supplier to it being delivered
