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Stock Control (Types of Stock (Finished Good (E.G. Chair), Unfinished Good…
Stock Control
Types of Stock
Finished Good
E.G. Chair
Unfinished Good
E.G. Frame of chair
Raw Materials
E.G. Wood
Buffer Stock
Is the minimum level of stock a business wants to hold at anytime
Advantages
Not depending on suppliers
No lead time
Economies of scales
Disadvantages
Stock can get damaged
Rent
Change in trends
Just-In-Time
Is all about reducing cost and waste by only ordering stock as and when they are needed
Advantages
Preventing over-production
Decreasing product defects
Minimising waiting times and transport cost
Disadvantages
Risk of running out of stock
Lack of control over time frame
More planning required
Poor stock control
Moral
High cost
Good stock control
Increase productivity
Helps save time and money
competitive advantage of lean production
Increased product quality
Improved lead times
