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Managing Stock

Managing Stock. Unit 3 Topic 3.2.5. Aims for today. To understand traditional bar gate stock graphs . To understand the costs and benefits of using JIT systems of stock control (and where such systems might be appropriate and where not !).

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Managing Stock

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  1. Managing Stock Unit 3 Topic 3.2.5

  2. Aims for today • To understand traditional bar gate stock graphs. • To understand the costs and benefits of using JIT systems of stock control (and where such systems might be appropriate and where not!).

  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?

  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. 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

  12. Disadvantages of stock control

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

  14. Answers!

  15. 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

  16. 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

  17. 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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