Role of procurement: stock control Flashcards
What is stock control?
used to show how much stock you have at any one time and how you keep track of it
What is just in time?
producing to order, business only makes item at customer demand and business order a small amount to save wasteage
Why must businesses and suppliers have a good relationship?
suppliers need to respond quickly to orders and must deliver products that work as can’t afford for anything to go wrong
Advantages of JIT
less waste
no storage costs
less cost as you buy exact amounts
Disadvantages of JIT
may not arrive in time so unable to work
cannot respond to increase in demand
no buffer stock incase of mistakes
What is just in case?
Businesses hold stock just in case they might need it which is good in terms of always have stock available for production and sales
Advantages or JIC
buffer stock available it mistakes made or demand increases
buying in bulk can reduce costs per unit
Disadvantages of JIC
storage costs , rent heating lighting security
wastage due to spoilage OOD
What does sale of assets mean?
when a business sells items that they no longer need quickly for cash
asserts like a van can be sold quickly for cash
