What do you think a stock control graph might look like? www.njhunter.co.uk This lesson we will be learning about 3.2 – JIT and Bar Gate Stock Control Graphs What do you think a stock control graph might look like?

NO IDEA I NEED HELP NEVER HEARD OF IT OK I CAN DO THIS WITH SUPPORT SOME GUIDANCE NEEDED NEARLY AT MY TARGET GOT IT! VERY CONFIDENT WILL HIT MY TARGET GRADE EXCEED TARGET LEARNING OBJECTIVES Explore the JIT as a stock control method, and understand the bar gate graphs Success Criteria < C Define JIT and draw a stock control graph C > Be able to give examples of different of JIT and key points in the graph B > Analysis - Advantages and disadvantages to the businesses and its consumers. A > Recommendations + QOWC and SPAG

Stock Control A system of managing stock to be delivered when needed Maximum stock levels Largest amount of stock a business will keep at any one time. Re-order level This is when a business will decided to order new stock, back up to maximum level. Minimum or buffer stocks The minimum amount of stock a business will hold, this usually cover emergencies or to cover themselves while new stocks arrive

What would a bar gate stock graph look like?

http://www.bbc.co.uk/schools/gcsebitesize/business/images/production1.gif

Mr. Rashid from the phone shop, keeps the maximum of 100 phones in stock, when stock gets to 50 phones he reorders, he hates to get below 25 orders as this is the minimum order for business customers. Every 2 weeks he re-orders, when stock gets to ‘re-level order’

Questions - Discuss What is the minimum stock level a business should hold? Should a business hold any stock at all? When should stock be re-ordered?

Apply this to a business A local corner shop, who stocks a wide variety of items and a cash and carry is 45 minutes way? Questions in your books What is the minimum stock level a business should hold? – why? When should stock be re-ordered?

Advantages and Disadvantages of stock control methods

Advantages and Disadvantages of stock control methods Controlling stocks save money, as unnecessary stocks are held. It saves space is shops, and warehouses Food/products won’t go out of date/fashion or be obsolete – e.g. Keep to many Xboxes in stock, they’ll be a new one out before you sell those. Systems and processes take time to set-up, cost money and need training. If stock can’t be seen, it can’t be tested, used or bought if a customer needs one. If there is a big demand then a business might find it hard to get hold of stock. Production could stop, if a part was needed mid production. E.g. Car production and you run out black paint.

Test yourself

B Test yourself A D