Managing stock levels is important for meeting customer demand while avoiding excess inventory. It is difficult to determine the optimal amount of stock to hold. Factors like product type, demand patterns, lead times, and costs must be considered. Just-in-time (JIT) inventory management aims to order supplies so they arrive just before stock runs out, reducing excess stock but increasing risk if demand is higher than expected or if there are supply disruptions.

2.  Managing stock: to interpret bar gate stock
graphs to see how stock control should work
in theory and understand the need for the
use of Just In Time (JIT) stock control

3.  Stock is items held by a firm for use or
sale.
 How much stock a business retains is a very
difficult process
I would like you to do some thinking; put
STOCK in the middle of an empty page
 You are going to create a mind map for the
positives and negatives of managing stock

4. Include as many positives
Customers You can put a point and then
and negatives that you can
expect you to branch positives and
think of have enough negatives off it
products
Having enough
Stock may
stock enables
you to meet
customer
Stock get out of
date if there
is too much
demand
The product
Whatever comes into you my become Think about jobs; money;
head; include it!! unpopular and customer satisfaction;
not sell company image;
development

5. Create a graph for the following number of a product. Have STOCK LEVEL
on the vertical Y axis and WEEKS on the horizontal X axis. I have only
given you 5 weeks worth of date, please include 20 weeks on the X axis.
We will fill them in together once we have completed the first 5 weeks.
Week 1 100%
Week 2 75%
Week 3 50%
Week 4 25%
Week 5 0%

6.  Buffer levels are the minimum stock levels
held at all times to avoid running out.
 On your graph; decide upon a suitable
buffer level
 Whenever you hit that level your business
will replenish its stock to 100%
 Tell me why, in a sentence, why you chose
the level you did

7. Stock
120
100
80
60
Stock
40
Buffer
20 level
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

8.  Decide if your buffer level changes, and
why, if you product is:
 A diary product
 A car
 An iPAD
 An antique grand piano
 Christmas crackers

9.  Nokia : Here

11.  Just in time (JIT)
 This is where supplies are ordered to arrive
just before stock runs out

12.  What do you think about JIT?
 Can you think of a company/business where
it will have positive outcomes?
 Can you think of a company/business where
it will be have negative outcomes?

13.  Jessops : p276 Q3 + 4
 Jessops : here

14.  Managing Stock

15.  Water butts