Stock Management and JIT
Too much stock ties up cash; too little stops production. Read a bar gate stock graph, learn how just-in-time control works, and see why a business lives or dies by its suppliers.
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Just enough, just in time 📦
A business needs the right materials at the right moment. **Too much** stock ties up cash and fills the warehouse; **too little** stops production dead. This module reads a **stock graph**, meets **just-in-time** control, and sees why a firm lives or dies by its **suppliers**.
The language of stock 🔑
Four ideas run through this module:
Two ways to manage stock ⚖️
A business can hold a **cushion** of stock, or bring it in **just in time**. Each has a cost.
Just in time 🎯
What does just-in-time (JIT) stock control mean?
- Holding little or no stock, with materials arriving as needed
- Holding as much stock as possible at all times
- Never ordering from suppliers again
- Storing stock unused for years
Read the stock graph 📉
An interactive activity.
How much is left? 🔢
An interactive activity.
Choosing a supplier 🤝
A business chooses and keeps its **suppliers** on their **quality**, **delivery** reliability, **availability**, **cost** and **trust**. A reliable supplier keeps production flowing, which matters most of all under **just-in-time**, where there is no buffer to fall back on.
Match each term to its meaning 🔗
- Maximum stock level
- Buffer stock
- Reorder level
- Lead time
- The most stock a business holds
- A safety cushion kept in reserve
- The point at which a new order is placed
- The gap between ordering and delivery
Why choose JIT? ✅
Select the TWO benefits of just-in-time stock control.
- Lower storage costs
- Less money tied up in stock
- A large safety cushion of stock
- No need for reliable suppliers
The reorder cycle 🪜
An interactive activity.
Stock in words 🧩
A business holds _____ to keep production running. A _____ stock level is a safety cushion in case of delays. When stock falls to the _____ level a new order is placed, and the _____ time is the wait for it to arrive. _____ stock control holds little or no stock, cutting storage costs.
Spot the true statements 🖍️
An interactive activity.
Advise the business 🧭
An interactive activity.
Should they switch to JIT? ✍️
An interactive activity.