Managing Stock Textbook: Page 45.

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Presentation transcript:

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: Raw materials & other components (things that go into the production process) Work in progress- products that are semi finished by the producer Finished goods – products to completed to the right standard & are ready to be delivered to customers Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

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

What do you think these methods involve? Stock control methods Just in case (JIC) Just in Time (JIT) Justin Timberlake What do you think these methods involve? Pages 42 & 43 Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

Task 2: Timed task In triads, research the main stock control methods: 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 Uncertainty

2. Just in time

Task 3: Case study: McDonalds Read the case study & answer the questions - 30 minutes - Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

Task 3: Case study: Questions 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) 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) 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) Read the case study & answer the questions - 25 min - Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

Advantages of stock control Restaurants avoid running out of stock. As a result, customers can always receive what they order. The system eliminates inexperience in the ordering & saves time. Orders are based on the current stocks. Less waste means food costs are reduced = savings for customer Less emergency deliveries = saving £ Stock levels at optimum level Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

Disadvantages of stock control Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

Just a quickie! http://www.businessstudiesonline.co.uk/live/index.php?option=com_content&view=article&id=2&Itemid=8

Answers!

Homework Jollife Metals Due Thursday 20th Jan Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

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 Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

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 Answer A Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty

Plenary Review Test A the maximum stock level is too low 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 the maximum stock level is too low B the re-order level is too high C the minimum stock level should be lowered D the buffer stock level should be raised Answer D Differentiation Branding Packaging Market mapping Premium pricing Perception Brand loyalty