Production planning - short answer questions
Identify the three categories of stock.
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.
Explain how a firm determines its minimum stock level.
Examine the reasons why firms hold stocks of finished goods.
Distinguish between 'reorder level' and the 'reorder quantity'.
Explain why the Economics Order Quantity (EOQ) differs from product to product.
Using examples, explain why capacity utilisation is significant in the process of creating competitive advantage.
Define the terms:
Distinguish between just-in-time and just-in-case as stock management systems.
Explain why multi-skilled employees are vital for the success of a just-in-time management system.