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WorksheetsSGS Business 2.3.3 Managing Stock
Total questions: 12
Worksheet time: 6mins
Which option best describes the term, just in time (JIT) stock control?
The stock which a business holds
A diagram which shows business stock levels and usage over time
A system whereby stock arrives only when it is needed by the business
The minimum amount of stock that a business holds at any one time
Which option is a drawback to a business of using just in time (JIT) stock control?
High insurance costs
Stock could become out of date or obsolete
Storage costs will be high
Delays in deliveries could result in idle resources
Which business is most likely to operate a just in time (JIT) stock control
system?
Car manufacturer
Nationwide footwear retailer
Wholesaler of building supplies
School uniform retailer
Which of the following statements is true in relation to the bar gate stock graph?
The business experienced a stock out in month one
The maximum stock level the business wishes to hold is 4 cartridges
The lead time for each delivery is always two months
The re-order quantity in month two is 6 cartridges
On a bar gate stock graph, which of the following terms describes the size of an order that
is delivered to a business at a set moment in time?
Maximum stock level
Re-order quantity
Minimum stock level
Re-order level
Which option describes the time difference between a business ordering and receiving stock?
Re-order quantity
Lead time
Buffer stock
Re-order level
Which two are most likely to occur when a business introduces just in time (JIT) stock control?
Lower stock holding
An increase in obsolete stock
More frequent deliveries
A build-up of unsold stock
Increased storage space is required
In a bar gate stock graph, what is the re-order level?
The time at which new stock is ordered
The amount of new stock that is ordered
The amount of stock that leads to a new order being placed
The time at which stock levels reach zero
Which of the following is most likely to be an advantage to a business of using just in time (JIT) stock control?
Last minute orders can be met successfully
Bulk buying of stock can lead to lower costs
Improved cash flow
Delays in the production process are less likely to occur
Which of the following best describes the term, buffer stock?
The maximum amount of stock the business can physically hold
The amount of stock that arrives in a new delivery
The minimum amount of stock the business wishes to hold
The amount of stock held when a new order is triggered
Which two are possible drawbacks to a high street fashion retailer of changing to a just in time (JIT) stock control system? The business...
May be unable to meet unexpected demand for fashionable products
Will have to use potential selling space to hold buffer stock
May have to increase stock room capacity
Will have a weaker cash flow
May lose out on discounts resulting from bulk buying of stock
Which two statements are true in relation to the bar gate stock graph below?
3000 bags of flour arrive in week 3
Maximum stock held is 5000 bags of flour
Stock ordered in week 5 takes 2 weeks to arrive
Buffer stock held is 6000 bags of flour
Minimum stock held is 1000 bags of flour
