Entrepreneurship

Entrepreneurship

Grade 11

Multiple Choice

The __________is where purchasing and inventory planning are put into effect

• Office

• Warehouse

• Business

Chapter 15.2:Inventory Management

Pages 366-368

Objectives

• Interpret the warehousing and its areas

• Predict the effect of excess inventory

• Discuss reordering and the best option

Information

Warehousing is the act of holding and handling goods in a warehouse. The warehouse is where purchasing and inventory planning are put into effect. The warehouse can be an actual structure or an assigned space.

Video

https://www.ar-racking.com/en/news-and-blog/storage-solutions/quality-and-security/main-areas-of-a-warehouse

Open Ended

What is warehousing?

What are the areas allocated in a warehouse?

Areas in a Warehouse

1.Receiving and shipping docks 

2.Bulk storage areas

 3.Staging areas

4.Picking rows

5.Assembly areas

6.Packing areas

7.Management office and lockers

Multiple Choice

The warehouse is where ___________ and ________ planning

are put into effect.

• organize and distribute

• Buying and Selling

• Planning and Purchasing

Open Ended

1.What is the effect of excess inventory in the warehouse?

2.What are the ways to clear out the overstuffed warehouse?

Multiple Choice

Why should we keep products moving out in a warehouse?

• To make more sales

• To businesses running

• To keep cash flowing in, businesses

Reordering

Products or raw materials that are inexpensive should be reordered periodically. You should also periodically reorder any products or raw materials that are used often or are easy to get.

Inventory that is not suited to periodic reordering must be reordered in another way. Three key questions must be considered:

1. What is the lead time? Lead time is the gap in time between placing an order and receiving delivery.

2. What is the usage rate? Usage rate is how quickly the inventory will be used in a given period of time.

3. How much safety stock will be needed?

Open Ended

1.What is the need for reordering?

What are the different methods of reordering?

Multiple Choice

How does periodic and nonperiodic reordering differ?

• For periodic ordering is instantaneous but non periodic is in periods

• Ordering for periodic is using physical count but for non periodic computerized

• Ordering is in periods but for non periodic its once the product finishes.

Poll

How well did you understand?

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• 2

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• 4