Stock Control (Edexcel A-Level Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
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Practise the cards
10 cards from this deck
Stock/inventory
Stock/inventory
All materials & goods a business holds at any time
Three types of stock
Three types of stock
Raw materials, work-in-progress, finished goods
Buffer stock
Buffer stock
Emergency reserves for unexpected demand/supply disruptions
Lead time
Lead time
Duration from placing order to stock ready for use
Re-order level
Re-order level
Stock quantity that triggers a new order
Maximum stock level
Maximum stock level
Highest quantity of stock the business wants to hold
Minimum stock level
Minimum stock level
Lowest point stock should reach before new supplies arrive
Work-in-progress
Work-in-progress
Partly finished goods currently being manufactured
Purpose of finished goods stock
Purpose of finished goods stock
Respond quickly to changes in demand
Effect of longer lead times on min stock
Effect of longer lead times on min stock
Require higher min stock to avoid running out while waiting