Stock, Quality & J.I.T.
Which of the 3 definitions of ‘stock’ applies to Amazon?Amazon holds finished goods as its stock.
Why would Amazon not want to hold stock if it can help it?
Runs the risk of theft, and products becoming useless from becoming out of date and takes up space.
What are the 2 main methods of stock management?
Stock Rotation: Using up older stock before newer stock.
Stock Waste: Using newer stock first, and just getting rid of old stock.
What does a stock control chart do?
A stock control chart allows a company to analyse its situation on stocks. Letting business know what to order, when to order and how much they need to order.
What is Just in Time? (J.I.T)
When a company orders stocks immediately before they need to use them, keeping storage costs low.
Why would Amazon use ‘just in time’?
Amazon would use the J.I.T method to save space, lower amount of thefts, and saves them money by operating on the right amount stock.
What is Quality?
The standard of the product, for example being strong and not breaking etc.
Identify 5 examples of poor quality.
Product failure. (breakdowns etc.)
Product being delivered late.
Does not perform how its described to.
Being a different product to what is advertised.
Doesn't last very long, does not endure much.
What are the costs of poor quality?
May lose customers or profits and potential law suits that can damage the business.
What is Quality control?
Quality Control is maintaining high quality amongst products throughout the production process.
What is Quality assurance?
Preventing mistakes and faults in products by checking the product throughout the process.