Managing Stock
Textbook:
Page 45
Learning Questions
What is a traditional bar gate
stock graphs?
What are the costs and benefits of
using JIT systems of stock
control?
‘Stock control is
simple – just order it
when you need it’
http://www.youtube.com/watch?v=d8xr_G_Voc4
Stock Management – How business control their
stock
Stock refers to:
1.Raw materials & other components (things
that go into the production process)
2.Work in progress- products that are semi
finished by the producer
3.Finished goods – products to completed to the
right standard & are ready to be delivered to
customers
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
Stock control methods
1. Just in case (JIC)
2. Just in Time (JIT)
3. Justin Timberlake
What do you think these methods involve?
Pages 42 & 43
Task 2: Timed task
• In triads, research the main stock control
methods:
1.
2.
Just in case (JIC)
Just in Time (JIT)
- You have 15 minutes -
1. Just in case Stock control
1. Just in case stock control charts
2. Just in time
Task 3: Case study: McDonalds
Read the case
study &
answer the
questions
- 30 minutes -
Task 3: Case study: Questions
Questions
1.What are the 3 main types of stock that exist within business
as a whole? You need to apply these types of control to
MacDonald’s.(6)
Read the
case study &
answer the
questions
2. MacDonald’s use a method of production known as Lean
Production, what does this method entail? (3)
3. What are stock control charts? How and why are they used
with regards to Macdonald’s? (3)
- 25 min 4. What are the benefits of good stock control management?(6)
(Hint: Think in terms of the ‘Business’ and the ‘Customer’)
5. What are the possible negatives of MacDonald’s chosen
method of stock control? (6)
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
Disadvantages of stock control
Just a quickie!
http://www.businessstudiesonline.co.uk/live/index.php?option=com_content&view=a
rticle&id=2&Itemid=8
Answers!
Homework
Jollife Metals
Due Thursday
20th Jan
Plenary Review Test:
Girls 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
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
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
B
C
D
the maximum stock level is too low
the re-order level is too high
the minimum stock level should be lowered
the buffer stock level should be raised
Answer D