Managing Stock with Stock Graphs and Just-in-Time Production Systems

The video discusses the importance of stock management for businesses, using Sony's PS5 launch as an example of stock issues during the pandemic. It explains stock graphs and their components, such as raw materials, work in progress, and finished goods. The video also covers challenges in stock management, including lead time and usage rate variations. Finally, it introduces the Just in Time production system, highlighting its benefits and risks.

Why was the PS5 launch not as successful as expected?

• The PS5 had technical issues.

• Sony decided to delay the launch.

• The pandemic caused production disruptions.

• Sony underestimated the demand for PS5.

What is the primary purpose of a stock graph?

• To predict future market trends.

• To track stock levels over time.

• To calculate production costs.

• To manage employee schedules.

Which of the following is NOT a component of stock levels?

• Raw materials

• Finished goods

• Work in progress

• Employee salaries

What triggers a reorder in a stock graph?

• Maximum stock level

• Minimum stock level

• Reorder level

• Lead time

What does the lead time in a stock graph represent?

• The time between placing an order and receiving stock.

• The time taken to sell all stock.

• The time to calculate stock levels.

• The time to produce new stock.

Which factor can cause a stock graph to be inaccurate?

• Stable market demand

• Consistent stock usage rate

• Accurate stock orders

• Late deliveries

How do businesses adapt stock management during high-demand periods like Christmas?

• Reduce stock levels

• Increase stock levels

• Stop stock orders

• Ignore stock levels

What is a key advantage of the Just-In-Time production system?

• Increased storage costs

• Higher insurance costs

• Longer lead times

• Reduced waste

What is a major risk associated with the Just-In-Time system?

• Frequent stockouts

• Excessive stock levels

• Increased storage space

• Higher production costs

Why might a business prefer small and frequent orders in a JIT system?

• To minimize idle stock

• To increase storage costs

• To reduce flexibility

• To complicate logistics