Stock control

Which of the following is not a type of stock for a business?

• Finished goods

• Ordinary shares

• Raw materials

• Work-in-progress

Drawbacks of a stock-out do not include

• Disgruntled customers

• Loss of sales

• Negative impact on cash flows

• Storage costs

Stockpiling means that a business

• Builds up excessive levels of inventory

• Operates at a level lower than its buffer stock

• Plans for a large safety margin

• Produces on a larger scale to benefit from cost savings

A drawback of holding too much stock is

• Inflexibility in production levels

• Share prices are likely to drop due to excess production

• Stocks are highly liquid assets

• Working capital is tied up in stockpiling

Which of the following is not advantages of JIC?

• There is a huge reliance on suppliers

• May have economies of scale

• May meet a sudden increase in demand

• There is no need to wait for suppliers

Which of the following does not appear in a stock control chart

• Buffer stock

• Downtime

• Re-order level

• Maximum level

Which of the following is advantage of JIT

• Reduce cost of stock management

• Rely heavily on suppliers

• High cost of administration

• Is suitable for stocks that are not perishable

The inventory level which ensures that there are sufficient stock for production whilst incurring minimal costs is known as

• Capacity utilization rate

• Economic order quantity

• Minimum stock level

• Productivity level

What is the lead time?

• 1 week

• 2 weeks

• 3 weeks

• 4 weeks

What is the buffer stock and re-order quantity?

• Buffer stock:

  1500 kg

• Buffer stock:

  3000 kg

• Re-order Q:

  1500 kg

• Re-order Q:

  3000 kg