15 production_stock_control

15 production_stock_control - tutor2u GCSE Business Studies...

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tutor2u GCSE Business Studies Stock control Introduction There are three types of stock that a business can hold: f Stocks of raw materials (inputs brought from suppliers waiting to be used in the production process) f Work in progress (incomplete products still in the process of being made) f Stocks of finished products (finished goods of acceptable quality waiting to be sold to customers) The aim of stock control is to minimise the cost of holding these stocks whilst ensuring that there are enough materials for production to continue and be able to meet customer demand. Obtaining the correct balance is not easy and the stock control department will work closely with the purchasing and marketing departments. f The marketing department should be able to provide sales forecasts for the coming weeks or months (this can be difficult if demand is seasonal or prone to unexpected fluctuation) and so allow stock control managers to judge the type, quantity and timing of stocks needed. f
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This note was uploaded on 05/20/2010 for the course BUSINESS 6 Producti taught by Professor N/a during the Spring '10 term at Open Uni..

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15 production_stock_control - tutor2u GCSE Business Studies...

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