Influences on Inventory (AQA A-Level Business): Flashcards
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Inventory definition
Inventory definition
Stock a business holds: raw materials, WIP, finished goods
Too much stock consequences
Too much stock consequences
Wastage (perishable goods) or selling at reduced prices
Too little stock consequences
Too little stock consequences
Lost sales and potential damage to business reputation
Flexible workforce meaning
Flexible workforce meaning
Workers with multiple skills/part-time/zero hours contracts
Outsourcing definition
Outsourcing definition
Transferring production previously done in-house to third party
Just-in-Time (JIT) production
Just-in-Time (JIT) production
Minimal stock; materials arrive precisely when needed
Opportunity cost in inventory
Opportunity cost in inventory
Money tied up in stock could be used elsewhere in business
Buffer inventory/stock definition
Buffer inventory/stock definition
Minimum amount of inventory held at all times as safety net
Lead time definition
Lead time definition
Time between placing order and inventory arriving at business
Supplier dependability meaning
Supplier dependability meaning
Reliable supplier able to deliver on time consistently