Managing Stock

re-order level
1. when the stock level gets to this point, the manager/worker will order more stock
maximum stock levels
1. largest amount of stock that a business has decided to keep at any one time
types of stocks
1. stocks of materials which have been bought buy the business
2. stocks of materials that have been semi-finished by the producer
3. stocks of finished goods
stocks
1. are: materials that a business holds. some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers
Minimum or buffer stock levels
1. lowest amount of stock that a business can hold
  1. if stocks fall below this level, business may have trouble filling in unexpected orders
Just In Time (JIT)
1. A stock management system where stocks are only delievered when needed. no stocks held by the business
disadvantages of holding stock
1. cost
  1. less stock = less costs
2. production needs
  1. holding too little stock can result in loss of production and sales
    1. not enough stockso had to turn the customer away.
  2. suppliers might be late
advantages of holding stock
1. Price
  1. Buying in bulk
    1. cheaper to buy a lot of products all at once
2. just in time
  1. have to hold any stock
    1. reduce total costs
Topic 3.2 Revision

Resource summary

	Created by 130299es almost 10 years ago