Stock, Quality and J.I.T
what type of stock does amazon hold?
Amazon warehouse holds Finished Goods - products that have been completed to the right quality - and are waiting to be delivered.
why would amazon not want to hold stock?
stock control charts?
stock takes up a lot of room and space. it also costs a lot of money to hold all of that stock. risk of stock going out of date, e.g. food going out of date.
tell you what to order, when to order and how much you should order.
two ways to manage stock
stock rotation - rotating around the stock
stock wastage - throwing out the stock.
Just In Time (J.I.T)
Has become popular in UK firms over recent years allows firms to operate with only a small amount of stock.
advantage - stock rotation and wastage become lesser issues.
storage space can be used for something else.
disadvantages - any problems with the supplier effects the reputation of the firm.
more orders pay be placed, so costs of this may rise.
why would BMW use just in time?