LEARNING
OBJECTIVES
STUDENTS WILL BE ABLE TO ANALYZE AND EVALUATE REASONS OF HOLDING
DIFFERENT LEVELS OF INVENTORIES(STOCK)
STARTER
• Difference between stock and inventory
• Have you ever gone into a shop and found that they have ran out stock, of what you
wanted?
• What might have been the reason for running out of stock?
MINIMUM STOCK LEVEL
• Minimum stock is also called buffer stock where the inventory held to deal with
uncertainty in customer’s demand and deliveries of suppliers.
LEAD TIME
• The time between placing and order till it get delivered.
RE-ORDERING QUANTITY
• What will be the reorder quantity?
WWW
PRODUCTIVITY
• https://www.youtube.com/watch?v=mRxICdUYaCs
CAPITAL AND LABOUR INTENSIVE
• https://www.youtube.com/watch?v=M9XYrLNAxSM