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Managing Stock

Managing Stock. Textbook: Page 45. Learning Questions. What is a traditional bar gate stock graphs ? What are the costs and benefits of using JIT systems of stock control?. ‘ Stock control is simple – just order it when you need it ’ http://www.youtube.com/watch?v=d8xr_G_Voc4.

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Managing Stock

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  1. Managing Stock Textbook: Page 45

  2. Learning Questions What is a traditional bar gate stock graphs? What are the costs and benefits of using JIT systems of stock control?

  3. ‘Stock control is simple – just order it when you need it’ http://www.youtube.com/watch?v=d8xr_G_Voc4

  4. Stock Management – How business control their stock Stock refers to: • Raw materials & other components (things that go into the production process) • Work in progress- products that are semi finished by the producer • Finished goods – products to completed to the right standard & are ready to be delivered to customers

  5. Task 1: Thinking skills (Pairs) A. What are the benefits of good stock control? Products are in a good condition, less waste, less storage capacity needed, easier to manage, ordering could be automated (hotel bars) good products = good reputation B. What are the consequences of poor stock control? May loose sales, wastage, not using FIFO principle, health & safety issues, vermin, over or under ordering, expensive, poor management, disorganised etc

  6. Stock control methods • Just in case (JIC) • Just in Time (JIT) • Justin Timberlake What do you think these methods involve? Pages 42 & 43

  7. Task 2: Timed task • In triads, research the main stock control methods: • Just in case (JIC) • Just in Time (JIT) - You have 15 minutes -

  8. 1. Just in case Stock control

  9. 1. Just in case stock control charts Uncertainty

  10. 2. Just in time

  11. Task 3: Case study: McDonalds Read the case study & answer the questions - 30 minutes -

  12. Task 3: Case study: Questions • Questions • What are the 3 main types of stock that exist within business as a whole? You need to apply these types of control to MacDonald’s.(6) • 2. MacDonald’s use a method of production known as Lean Production, what does this method entail? (3) • 3. What are stock control charts? How and why are they used with regards to Macdonald’s? (3) • 4. What are the benefits of good stock control management?(6) • (Hint: Think in terms of the ‘Business’ and the ‘Customer’) • 5. What are the possible negatives of MacDonald’s chosen method of stock control? (6) Read the case study & answer the questions - 25 min -

  13. Advantages of stock control • Restaurants avoid running out of stock. As a result, customers can always receive what they order. • The system eliminates inexperience in the ordering & saves time. • Orders are based on the current stocks. • Less waste means food costs are reduced = savings for customer • Less emergency deliveries = saving £ • Stock levels at optimum level

  14. Disadvantages of stock control

  15. Just a quickie! http://www.businessstudiesonline.co.uk/live/index.php?option=com_content&view=article&id=2&Itemid=8

  16. Answers!

  17. Homework Jollife Metals Due Thursday 20th Jan

  18. Plenary Review Test:Girls V Boys 1. A business aims to keep at least 2,000 metal sheets in stock at any one time. This stock is called A a stock check B a buffer stock C the maximum stock level D the re-order level of stock Answer B

  19. Plenary Review Test 2. A company does not keep stocks. Its suppliers deliver material and components as and when they are needed. This system of stock management is called A Just In Time B Just in Case C Just When Needed D Just In Stock Answer A

  20. Plenary Review Test 3. The managing director of a company has a policy of not ordering stock unless it is absolutely necessary. However, all too frequently, work has to come to a stop because there is not any stock of components in the factory. As a result, output is lost and time is wasted. This would suggest that: A the maximum stock level is too low B the re-order level is too high C the minimum stock level should be lowered D the buffer stock level should be raised Answer D

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