Business Studies

• What is the Just in Time (JIT) stock control method?

  A method with no stored raw materials
• What is a key advantage of the JIT method?

  Less money tied up in stock
• How does JIT affect product freshness?

  Products are fresher due to frequent deliveries
• What is a disadvantage of the JIT method?

  Unable to use bulk buy discounts
• What could happen if a business misjudges stock needs in JIT?

  Customers could receive poor service
• What is the Just in Case (JIC) stock control method?

  Involves producing or purchasing excess stock
• What is an advantage of the JIC method?

  Increases customer satisfaction levels
• What is a disadvantage of the JIC method?

  High amounts of cash tied up in stock
• What is a factor affecting the choice of suppliers?

  Price, quality, and reliability
• Why is price important in supplier choice?

  It keeps variable costs low
• How does quality affect supplier choice?

  Quality needs to meet customer expectations
• What does reliability in suppliers refer to?

  Trust in timely delivery and stock availability
• What is logistics in the context of procurement?

  Working with suppliers for efficient processes
• What is the goal of effective procurement?

  Getting goods for the best price and value
• What is the benefit of cutting waste in procurement?

  Creates a streamlined process and fast production
• What is a result of satisfied consumers in procurement?

  Less complaints and lower return rates
• What is the definition of procurement?

  Getting the right supplies at the right time