Stock Control and stock diagrams Flashcards
1
Q
What is stock?
A
the raw materials, work-in-progress goods and finished goods that may be held by a firm to enable production and meet customer demands
2
Q
What are the types of stock?
A
1) raw materials
2) work-in-progress
3) finished goods
3
Q
What is buffer stock?
A
the amount of stock held as a contingency in case of unexpected orders so that such orders can be met and in any case met and in any case of delays.
4
Q
Why would a business hold extra stock?
A
- meet increased levels of demand
- dealing with unexpected events
- economic climate
- benefit from economies of scale
- seasonality
- precautions against delays
- cope with defective products
5
Q
What are stock control charts?
A
the overall objective of stock control is to maintain stock levels so that the total costs of holding stock is minimised.
6
Q
How does Brexit impact stock levels?
A
- fluctuating price of pound
- exchange rates
- increased tariffs
- harder communication
- potential barrier to trade
- supplier issues
