Stock, Quality and JIT
Which of the three definitions of 'stock' applies to Amazon?
Finished Goods- These are products completed to the right quality, and are waited to be delivered to the customers.
Why would Amazon not want to hold stock?
The stock could get damaged if kept in the warehouse for too long. It wont be fresh stock sent to the customer. The stock could go out of date. Takes up room.
The main Methods of Stock Management?
Stock Rotation - sell the older stock first.
Stock Wastage - Throw old stock out.
What does a Stock Control Chart do?
Lets you analyse your stock, tells you when to re-order, what to re-order and how much to re-order.
What is a Just In Time method?
When the stock is ordered Just In Time for when the company needs it. Also known as a JIT method.
Advantages and Disadvantages of JIT method?
ADS- .Stock Wastage and Stock rotation become less of a problem. Storage space can be used for other things.
DISADS- .Any problems with supplier can affect the reputation of the brand. More orders may be placed which costs more money.