Which of these is not a type of stock?
Work in progress
Just-in-time
Materials
What is buffer stock also known as?
Minimum stock level
Maximum stock level
Lead time
Which of these is an advantage of buffer stock?
There is a greater risk of running out of stock
Cost savings can be gained from the reduced need to store stock
The business is more likely to be able to meet spikes in demand
What is lead time?
The level where stock is reordered
The maximum stock level minus the reorder level
Lead time is the time it takes from ordering stock for it to arrive
What does JIT stand for?
Just-in-case
Just-inside-time
Which of these is an advantage of just-in-time (JIT)?
It eliminates buffer stock, allowing previously used storage space to be used as sales space
Buying in smaller quantities means a loss of bulk-buying discounts
Why might a small grocery shop set a low buffer stock for fresh milk?
Because it has lots of customers
To reduce waste as fresh milk has a short shelf life
To enable it to meet spikes in demand
What does procurement mean?
Ordering the right supplies from the right supplier
How long it takes from ordering stock to it arriving
Gaining and retaining customers
What is logistics?
Ensuring the correct products are ordered and arrive when needed
Applying logic to situations
Ordering the right products
Which of these is not an outcome of well-managed logistics?
Improved reputation
Increased costs
High customer satisfaction