Stock Control and Lean Production Quiz

What is the primary focus of stock control?

• Managing employee schedules

• Tracking sales revenue

• Controlling inventory levels

• Analyzing market trends

What does a stock control chart typically illustrate?

• Employee performance

• Stock level changes over time

• Market competition

• Customer satisfaction

What is the purpose of a buffer stock level?

• To maximize profits

• To prevent stockouts

• To reduce employee workload

• To increase sales

What is the reorder level in stock control?

• The minimum stock a business can hold

• The average stock level over a year

• The point at which new stock must be ordered

• The maximum stock a business can hold

What is a potential cost of holding too much stock?

• Increased employee turnover

• Reduced market share

• Decreased customer loyalty

• Higher storage and insurance costs

What is an opportunity cost in the context of stock control?

• The next best alternative forgone

• The cost of lost sales

• The cost of hiring new employees

• The cost of advertising

Why might a business avoid holding too much stock?

• To improve customer service

• To reduce storage and insurance costs

• To increase employee workload

• To expand product lines

What issue might arise from holding too little stock?

• Improved brand reputation

• Lost sales and customer defection

• Higher customer satisfaction

• Increased production speed

What happens if a business frequently runs out of stock?

• It gains more customers

• It loses potential sales

• It increases production speed

• It reduces storage costs

What is lean production primarily concerned with?

• Expanding product lines

• Maximizing employee benefits

• Eliminating waste and increasing efficiency

• Enhancing customer service