Stock control

Procurement is...

• The whole process of managing the ordering and receipt of the stock used in the business.

• The whole process of marketing the business and meeting customer needs.

• The whole process of manufacturing and selecting between flow and job production.

• The whole process of selecting and recruiting members of staff.

Which of the following is NOT involved in the procurement process?

• Selecting suppliers​​

• Negotiating terms of payment​​ for supplies

• Logistics

• Establishing an e-commerce site

In terms of procurement, stock is often referred to as...

• Inventory

• Fixed costs

• Enterprise

• Shares

Which of the following is an example of a semi-finished good?

• Microprocessor

• Grain

• Timber

• Laptop

Just-in-case stock control involves businesses holding stock. This stock is held in stock rooms, storage and warehouses ready for when it’s needed​. The minimum amount of stock held at any one time is referred to as _______ stock.

'Stock is not held​, it’s only ordered exactly when it’s needed'

What is being described here?

• Just-in-time

• Just-in-case

• Customer service

• Buffer stock

Circle the area on the chart in which shows the 'lead time' of an order

Which of the following describes just-in-case?

• Known as a 'push' system as stock is 'pushed' out from storage

• Business does not hold any stock

• Customer orders trigger manufacturing to begin

• This method requires careful planning to ensure orders are fulfilled on time

Which of the following describes just-in-time?

• This was first introduced in Japan by Toyota​

• Best used when suppliers are not nearby

• Best used when products are perishable

• Unexpected customer demand can always be met

Which of the following is a benefit of JIC?

• Can benefit from economies of scale

• Stock may perish

• Lower insurance costs

• Mistakes can be costly