Land, labour, capital, enterprise

Job production, batch production, flow production

Goods

Services

They are our friends but their reputation for business is bad

They are companies we don't know about

They are dependable, reliable and offer competitive prices.

They are as far away as possible

The time it takes from order to delivery.

The time it takes the driver to drive from home to work.

The mileage travelled

The amount of time the goods sits in storage at the suppiler

Customers go to competitors

All inventory never goes out of date

Inventory is never at a risk of being stolen.

Money is tied up in inventory so may cause cashflow problems

be open for all to use

store any type of product or goods

must be safe and secure

forget about having inventory control

This is the stock level that ensures that there will always be stocks available for production

This is the amount of stock required to return stock levels to economic stock level on the same day that new stocks arrive.

This is the level at which new stock should be ordered.

This is the stock level that permits activities to continue without interruption but incurs the minimum cost for the company.

Customers have too many options to choose from.

Costs relating to storage may be high.

Cash is tied up in stock.

Stock could perish, deteriorate or become obsolete.

Customers have to wait a long time for their item.

Requires very reliable suppliers

Possibility of not coping with unexpected demand

Wastage of stock is reduced

Job Production

Batch Production

Flow Production

Job Production

Flow Production

Batch Production

Job Production

Batch Production

Flow Production