Inventory Management

• What do stocks consist of in a business context?

  Raw materials, work in progress, finished goods
• What are stocks also referred to as?

  Inventories
• What are the three main types of stock in a business?

  • Raw materials and components
  • Work in progress
  • Finished goods
• Why do businesses hold stock?

  To enable production and meet customer demand
• What are the three main types of stock in a business?

  Raw materials and components, work in progress, finished goods
• Why do businesses hold stock?

  To enable production, meet customer demand, handle unexpected changes in demand, and schedule production efficiently
• What is the concept of "buffer" in relation to stock holding?

  The need to hold stock to ensure there are no stock-outs or delays in production
• What are the three key influences on the amount of stock a business holds?

  Satisfying demand, managing working capital, and the risk of stock becoming obsolete
• What are the costs associated with holding stock?

  Storage costs, interest/finance costs, and the risk of obsolescence
• What is the cost associated with not holding enough stock?

  Stock-out costs, where a customer's order cannot be fulfilled
• What are the key differences between raw materials, work in progress, and finished goods?

  • Raw materials and components: Inputs to the production process
  • Work in progress: Unfinished products in the production process
  • Finished goods: Products ready for sale to customers
• What is the relationship between stocks and inventories?

  Stocks and inventories are the same thing, just different terms used to refer to the same concept
• How do the costs and risks associated with holding stock differ between raw materials, work in progress, and finished goods?

  Raw materials have lower storage costs but higher obsolescence risk, work in progress has higher financing costs, and finished goods have higher storage and obsolescence costs
• How can a business effectively manage its stock levels to balance the costs and risks?

  • Implement stock control systems and processes
  • Regularly review and adjust stock levels based on demand forecasts
  • Minimize work in progress by optimizing production processes
  • Carefully manage raw material and component procurement
  • Sell off finished goods before they become obsolete
• How do the stock management considerations differ for a manufacturer versus a retailer?

  Manufacturers focus more on managing raw materials and work in progress, while retailers focus more on managing finished goods inventory to meet customer demand
• If a business experiences a sudden spike in customer demand, how should it adjust its stock management approach?

  The business should increase its buffer stock of finished goods to be able to meet the unexpected increase in demand
• What are the potential drawbacks of holding too much stock?

  • Increased storage and financing costs
  • Higher risk of obsolescence and spoilage
  • Inefficient use of working capital
  • Potential for overstocking and reduced agility
• What are the strengths and weaknesses of qualitative research methods?

  Strengths:

  • Provides in-depth, rich data
  • Flexible and adaptable to new information
  • Captures complex phenomena

  
  

  Weaknesses:

  • Time-consuming and labor-intensive
  • Potential for researcher bias
  • Limited generalizability
  • Difficulty in replicating results
• How does photosynthesis work in plants?

  Process of photosynthesis:

  1. Light absorption by chlorophyll
  2. Light-dependent reactions: water splits, electrons excited
  3. Electron transport chain: ATP and NADPH produced
  4. Calvin cycle (light-independent reactions):

  • CO2 fixation
  • Reduction of fixed carbon
  • Regeneration of RuBP

  1. Glucose and other carbohydrates synthesized
• What are the main components of the cell membrane?

  • Phospholipid bilayer
  • Proteins (integral and peripheral)
  • Cholesterol
  • Carbohydrates (in glycoproteins and glycolipids)
• What are the steps of the scientific method?

  1. Ask a question
  2. Do background research
  3. Construct a hypothesis
  4. Test the hypothesis by doing an experiment
  5. Analyze the data and draw a conclusion
  6. Communicate the results
• What is the first derivative of $x^2$?


  $2x$