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Production planning - short answer questions


Question 1

Identify the three categories of stock.

Question 2

Examine the stock control chart below, then answer the questions which follow.


Various points and levels are marked with the letters a to f.

Identify each of the points and explain their meaning.

Question 3

Explain how a firm determines its minimum stock level.

Question 4

Examine the reasons why firms hold stocks of finished goods.

Question 5

Distinguish between 'reorder level' and the 'reorder quantity'.

Question 6

Explain why the Economics Order Quantity (EOQ) differs from product to product.

Question 7

Using examples, explain why capacity utilisation is significant in the process of creating competitive advantage.

Question 8

Define the terms:

  • Outsourcing
  • Backshoring.

Question 9

Distinguish between just-in-time and just-in-case as stock management systems.

Question 10

Explain why multi-skilled employees are vital for the success of a just-in-time management system.