Unit 5 HL topics 5.3, 5.6 - 5.9

The minimum stock level that a firm wishes to hold at any point in time.

• re-order level

• buffer stock

• stock-out

• economic order quantity

Measures a firm’s actual output as a percentage of its capacity (maximum potential output), at a particular point in time.

• capacity utilization

• labor productivity rate

• usage rate

• stock turnover rate

A stock control system that relies on the use of reserve or buffer stocks in order to meet changing levels of demand.

• Just-In-Time

• Just-In-Case

• Stockpiling

This occurs if a business orders more stock than it would usually do, perhaps in anticipation of higher levels of demand during economically prosperous times, such as peak trading periods.

• Stock-out

• Economic order quantity

• Stockpiling

This refers to the best inventory level for a firm, which ensures that there are sufficient stocks for production whilst incurring minimal costs.

• economic order quantity

• stock-out

• buffer stock

Legal protection for the owners of published works, including those of authors, artists, composers, journalists, musicians, photographers, and film directors.

• Trademarks

• Patents

• Copyrights

• Lawsuit

Refers to innovation that involves creating entirely new products and/or processes. It tends to involve radical, rather than incremental, changes. Such advances can totally change the landscape of an industry

• Patent

• Paradigm innovation

• Incremental innovation

• Disruptive innovation

A test (or trial) version of a product to determine whether it addresses the unmet needs of customers, thereby gauging the chances of commercial success.

• Prototype

• Development

• Patent

• Incremental Innovation

The sole right to the owner to use a particular sign or symbol that belongs to the organization, such as brand names and business logos.

• Copyrights

• Patent

• Trademark

• Incremental Innovation

Innovation that involves adjusting, developing, and improving a product or process that already exists. With such innovations, no major changes or upgrades occur.

• Incremental innovation

• Paradigm innovation

• Positioning innovation

• Process innovation