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Flashcards in Management of inventory Deck (32)
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1

what is purchasing

the buying of materials from the supplier

2

what is inventory

the stock items available to use in the production or finished inventor sale to the consumer

3

what is centralised purchasing

one order sent to the supplier for the whole org

4

what are the advantages of centralised purchasing

-specialised dept
-cost effective
-approved supplier
-range of suppliers

5

what are the features of effective inventory control

-a trained inventory clerk
-appropriate inventory levels set
-regular monitoring inventory levels for usage

6

what does an inventory clerk do

-make sure the inventory documents are filled in correctly and approved
-use inventory rotation so old products are used first
-appropriate stock conditions

7

what effect does appropriate inventory levels have on the inventory control

Prevent problems with over and under stocking

8

what happens with the regular monitoring of inventory

-a formulae that monitors and calculates the stock
-best sellers/slow moving inventory identified
-physical counting of stock is done as well as electronically to get an accurate figure

9

what are the different inventory levels

Maximum
Reorder
Minimum
Buffer

10

what is the lead time on the inventory level

the about of time it takes for the delivery to come after the reorder is placed

11

what is the buffer inventory

excess to use incase order levels are wrong

12

what happens if levels are too low

production may be delayed or stopped due to under stock

13

what happens if levels are too high

overstocking and money is tied up and cannot be used elsewhere

14

what happens if suppliers change their terms

new reorder levels and order sizes may be needed

15

why is regular monitoring done

to ensure inventory levels are still appropriate

16

what is the purpose of inventory conrol

-anticipate when inventory will run out
-make sure customer orders aren’t delayed
-overstocking is avoided
-inventory control clerk

17

what is JIT

Just in time, this involves

-frequent deliveries
-small quantities
-recieved just before it’s needed

18

what does successful JIT depend on

-reliable suppliers
-constant good quality supplies
-staff responsible for identifying when stock is needed

19

what is the advantages of JIT

-no funds tied up so can be used elsewhere
-reduced inventory holding costs
-can change in trends quicker reducing waste

20

what are the disadvantages of JIT

-production could be effected if transport issues occur
-more dependent on suppliers
-loss of bulk buy discounts

21

what are the features of a good storage area

-storage capacity should be bigger than needed
-provide security
-use FIFO (rotation)
-labelled shelves

22

what is centralised storage

stored in one area

23

what are the advantages of centralised storage

-improved security control
-lower storage cost
-greater efficiency using specialist staff

24

what are the negatives of centralised storage

-staff needing to travel to the storage
-cost of specialised staff
-difficult to meet certain needs for departments (CDT)

25

what is decentralised storage

different areas

26

what are the positive of decentralised storage

-inventory is nearby if staff need
-orders for specific depts
-less waste/deterioration

27

what is the negatives of decentralised storage

-more likely of theft
-increase the amount of space taken up
-difficult to get an accurate balance

28

what is positive features of warehouse inventory

-designed to ensure smooth operations
-located on ground floor to make easier to move things
-correct storage conditions

29

what are the 2 basic forms of logistics

-production line
-transportation and storage network

30

what are the benefits of good logistical management

-prevent shortages
-minimise transport costs
-minimise time taken to obtain materials
-reduced storage