2.4.3 Stock Control Quiz

What is one of the factors that influence stock levels?

• Employee satisfaction

• Demand

• Marketing strategies

• Product design

What is the impact of high costs of stock holding?

• Only a small quantity will be kept

• Increased production speed

• Enhanced product quality

• Improved employee efficiency

What is the effect of a sudden rise in demand on stock control?

• It can meet urgent orders by supplying customers from stock holdings

• It reduces production costs

• It improves employee efficiency

• It enhances product quality

What is the role of just-in-time (JIT) management of stock?

• To minimize waste

• To increase production speed

• To enhance product quality

• To improve employee efficiency

What is the main focus of stock control?

• Maintaining the right level of stocks

• Increasing production speed

• Enhancing product quality

• Improving employee efficiency

What is the main reason for holding buffer stocks according to the text?

• To increase sales

• To protect against supply breaks

• To reduce costs

• To improve quality

What is the main risk of not holding buffer stocks?

• Increased costs

• Loss of regular customers

• Higher taxes

• Lower quality

What is the assumed usage rate of stock in the stock control diagram in Figure 1?

• 10,000 units per month

• 25,000 units per month

• 50,000 units every two months

• 70,000 units every two months

What is one of the administrative and financial costs of holding too much stock?

• Increased cash flow

• Handling costs

• Reduced spoilage

• Improved supplier relationships

What is a key requirement for successful JIT manufacturing?

• High levels of organizational skills

• Increased storage space

• Reduced supplier flexibility

• Decreased production speed