inventory (stock) control

• What is stock in a business context?

  A current asset held to meet demand
• What are the three forms of stock?

  Raw materials, work in progress, finished products
• How does stock help businesses?

  It fills gaps between production and demand
• What does the term 'inventory' refer to?

  Products owned by a business for use
• Why is inventory important for a business?

  It is used during the operations process
• What was inventory previously called?

  Stock
• What are the types of inventory?

  • Raw materials
  • Work in progress (semi-finished goods)
  • Finished products
  • General supplies
• What are raw materials in inventory?

  Items used in the production process
• What are work in progress items?

  Items where some work has been done
• What are finished products in inventory?

  Goods ready to be sent to customers
• What are general supplies in inventory?

  Items used to keep the business running
• Why are inventories held by businesses?

  To enable production and fulfill orders
• What is the purpose of holding excess materials?

  To manage potential delivery problems
• Why might a business hold semi-finished goods?

  To manage breakdowns in the production system
• What is the reason for holding finished goods?

  To fulfill customer orders promptly
• What is a rush order from a customer?

  An urgent request for immediate delivery
• What might happen if there is a problem with deliveries?

  Excess materials may be needed to manage issues
• Why hold finished goods in case of a rush order?

  To ensure quick fulfillment of customer needs
• What is the purpose of holding finished goods for rush orders?

  To quickly meet customer demands
• What is the significance of holding inventory during operations?

  It allows for smooth production and order fulfillment
• What is the impact of a breakdown in the production system?

  It may require holding semi-finished goods
• What should a business do if there is a rush order?

  Hold finished goods to meet the demand
• What is the role of inventory in a business?

  It supports production and customer service
• Why is it important to manage inventory effectively?

  To ensure smooth operations and customer satisfaction
• What happens if inventory is not managed properly?

  It can lead to production delays and customer dissatisfaction
• What is the consequence of not holding enough inventory?

  It may result in missed customer orders
• What is the benefit of holding excess inventory?

  It provides a buffer against supply chain issues
• What is the risk of holding too much inventory?

  It can lead to increased holding costs
• How does inventory management affect customer service?

  Effective management ensures timely order fulfillment
• What is the relationship between inventory and production?

  Inventory supports production processes and operations
• Why is it essential to have a good inventory system?

  To track stock levels and manage orders efficiently
• What is the impact of inventory on business operations?

  It directly affects production and customer satisfaction
• What is the importance of timely inventory replenishment?

  To prevent stockouts and maintain operations
• How does inventory affect cash flow?

  Excess inventory ties up cash resources
• What is the role of technology in inventory management?

  It helps track inventory levels and orders
• Why is it important to analyze inventory turnover?

  To assess how efficiently inventory is managed
• What is the consequence of low inventory turnover?

  It may indicate overstocking or poor sales
• What does high inventory turnover signify?

  Efficient inventory management and strong sales
• How can businesses improve inventory turnover?

  By optimizing stock levels and sales strategies
• What is the significance of accurate inventory records?

  They ensure effective inventory management and planning