Stock Control
- Created by: Izzie
- Created on: 20-05-17 15:59
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- Stock Control
- Stock's a current asset held by businesses to help meet demand
- Amount of stock held depend on:
- Business' attitude to risk
- Speed of change in market
- Nature of product (perishable)
- Stock control diagram= a management tool used to control & monitor the flow of stock
- Gives visual representation of...
- Lead Time
- Re-order Level
- Buffer Level of Stock
- Re-order Quantities
- Gives visual representation of...
- Just In Time Business HAS buffer stock
- Just in Case business DOESN'T HAVE buffer stock
- Implications of poor stock control:
- Supply is in excess of demand
- Supply doesn't meet demand
- Lean Production
- Working practices from Japan that focus on cutting waste while maintaining / improving quality
- Includes techniques like...
- Just In Time management
- Used to minimise stock holding at each production process stage to lower costs
- Kaizen
- Focuses on small, but frequent, improvements in every aspect of production process
- Just In Time management
- Efficient stock control can reduce waste leading to a competitive advt.
- REDUCE WASTE: Less obsolete / damaged stock, low costs of holding stock
- COMPETITIVE ADVT:Better able to meet customer needs, cost savings can be passed on in form of lower prices
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