Stock, Quality control and 'Just in time'

Abbie Batten

Which of the 3 definitions of 'stock' applies to Amazon

Stock when related to Amazon:

Finished Goods are products that have been completed to the right quality, and are waiting to be delivered to customers.

Why would amazon not want to hold stock?

The stock could be stolen, could become out of date and it costs money to hold the stock.

However, if they don't hold stock they may lose sales.

What are the 2 main methods of stock management?

Stock rotation: This is using the oldest stock first.

Stock waste: using newer stock before the old, allowing waste and costing Amazon money instead of bringing them money from sales.

What does a stock control chart do?

A company can analyse its stock situation by using stock control charts.

What is 'Just in time'?

The actual definition is:

Denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize storage costs.

Why would Amazon use Just in time?

They would use Just in time to save space, and to save money, they will also be able to save the risk of wasting products if they aren't sold in time.

What is quality?

The actual definition is:

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Identify 5 examples of poor quality

example 1:

The product breaking easily or without the force of the customer.

example 2:

The product not lasting very long/ having a very short battery life.

example 3:

Not looking like/ being the product that was advertised.

example 4:

Product is delivered late.

example 5:

Its performance is not as promised or does not all the functions you were promised.

What are the costs of poor quality?

The company may get a number of bad news building up which can result in losing customers or not gaining any new customers.

What is quality control?

The actual definition is:

A stem of maintaining standards in manufactured products by testing a sample of the output against the specification.

What is quality assurance?

The actual definition is:

the maintenance of a desired level of quality in a service or product, especially by means of attention to every stage of the process of delivery or production.

What is total quality management?

The actual definition is:

a system of management based on the principle that every member of staff must be committed to maintaining high standards of work in every aspect of a company's operations