This lesson we will be learning about

3.2 – JIT and Bar Gate Stock Control Graphs

What do you think a stock control graph might look like?

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www.njhunter.co.ukNO IDEAI NEED HELP

NEVER HEARD OF IT

OKI CAN DO THIS WITH SUPPORT

SOME GUIDANCE NEEDEDNEARLY AT MY TARGET

GOT IT!VERY CONFIDENT

WILL HIT MY TARGET GRADE

EXCEED TARGET

Success Criteria< C •Define JIT and draw a stock control graph

C > Be able to give examples of different of JIT and key points in the graph

B > •Analysis - Advantages and disadvantages to the businesses and its consumers.

A > Recommendations + QOWC and SPAG

LEARNING OBJECTIVESExplore the JIT as a stock control method, and understand the bar gate graphs

www.njhunter.co.ukStock Control

• A system of managing stock to be delivered when needed

Maximum stock levels Largest amount of stock a business will keep at any one time.

Re-order level This is when a business will decided to order new stock, back up to maximum level.

Minimum or buffer stocks The minimum amount of stock a business will hold, this usually cover emergencies or to cover themselves while new stocks arrive

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What would a bar gate stock graph look like?

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Mr. Rashid from the phone shop, keeps the maximum of 100 phones in stock, when stock gets to

50 phones he reorders, he hates to get below 25 orders as this is the minimum order for business

customers. Every 2 weeks he re-orders, when stock gets to ‘re-level order’

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Questions - Discuss• What is the minimum stock level a

business should hold?• Should a business hold any stock at all?• When should stock be re-ordered?

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Apply this to a business• A local corner shop, who stocks a wide

variety of items and a cash and carry is 45 minutes way? – Questions in your books

• What is the minimum stock level a business should hold? – why?

• When should stock be re-ordered?

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Advantages and Disadvantages of stock control methods

Advantages Disadvantages

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Advantages and Disadvantages of stock control methods

Advantages DisadvantagesControlling stocks save money, as unnecessary stocks are held. It saves space is shops, and warehouses

Food/products won’t go out of date/fashion or be obsolete – e.g. Keep to many Xboxes in stock, they’ll be a new one out before you sell those.

Systems and processes take time to set-up, cost money and need training.

If stock can’t be seen, it can’t be tested, used or bought if a customer needs one. If there is a big demand then a business might find it hard to get hold of stock.

Production could stop, if a part was needed mid production. E.g. Car production and you run out black paint.

Test yourself

Test yourself

B

D

A