Stock Quality Control & Just In Time
Which of the 3 definitions of 'stock' applies to Amazon?
Amazon has finished goods, this means that the products have been completed to the right and good quality and they are waiting to be delivered to the customers who want the product.
Why would Amazon not want to hold any stock if it can help it?
Amazon would not want to hold any stock because, it would take up too much space in the warehouses, which would cause overloading. Also it would cost a lot of money to pay for the extra stock which is not needed. There is a risk of the product going out of date such as food, and there can be a risk of theft if there is too much stock.
What are the 2 main methods of Stock management?
One method is stock rotation, that is when you use the old stock first. The second method is stock waste, this is when you don't use the stock before the old one, and then you allow the stock to be thrown away.
What does stock control chart do?
The stock control chart helps businesses to keep track of the stock using a chart. They tell you, how much to order, what to order and when to order. Below there is a example of the stock control chart, on the side it has the stock quantity and at the bottom it shows the time, for example the months.
What is 'Just In Time'
Just in time is when the stock comes in time, when it is needed. The stock is delivered immediately when you need it . The components arrive just as they are required.
Why would Amazon use 'Just In Time'?
Amazon would use just in time because it saves space in the warehouse and it for the workers it makes it easier to manage for example some of the products would get affected because of the light the warmness, this is a advantage, another advantage is that it saves money aswell.
What is Quality?
Quality is how good the product is, for example is it strong, and light. It also means what makes the product easy to use.
5 examples of poor quality?
- The product is out of date
- The product can be broken such as break down.
- the product is delivered late
- poor instructions or directions
- the customer service is hard to find, such as the telephone is not answered, or their website is not in use.
- the product does not work well as promised
What are the costs of Poor Quality?
There would be costs for poor quality , such as the cost of labour to fix the problem, there would also be costs of the extra materials that are going to be used. Because of the poor quality, there would be a loss of sales and revenue. And the other cost would be the cost of lost opportunity.
Quality assurance is when you check if the quality is alright for example you have weight checks to see if they are over loading. you also have other checks for example visual checks, temperature checks. You have temperature checks because you need to see if the products gets ruined by the temperature of the warehouses, such as food. Not only this you have chemical checks, to see if the chemicals are contaminated. All this is contributes to quality control because