Managing Stock

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Managing Stock

• Unit 3
• Topic 3.2.5

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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?vd8xr_G_Voc4

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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

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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

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Stock control methods

• Just in case (JIC)
• Just in Time (JIT)
• Justin Timberlake
• What do you think these methods involve?

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Task 2 Timed task

• In triads, research the main stock control
  methods
• Just in case (JIC)
• Just in Time (JIT)
• - You have 15 minutes -

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1. Just in case Stock control
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1. Just in case stock control charts
Uncertainty
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2. Just in time
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Advantages of stock control

1. Restaurants avoid running out of stock. As a
   result, customers can always receive what they
   order.
2. The system eliminates inexperience in the
   ordering saves time.
3. Orders are based on the current stocks.
4. Less waste means food costs are reduced savings
   for customer
5. Less emergency deliveries saving
6. Stock levels at optimum level

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Disadvantages of stock control
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Just a quickie!

• http//www.businessstudiesonline.co.uk/live/index.
  php?optioncom_contentviewarticleid2Itemid8

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Answers!
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Plenary Review TestGirls 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

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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

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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