Working with Suppliers Flashcards
All 8 cards in this deck
What is procurement?
The process of finding suppliers and buying the stock, raw materials and services a business needs.
What is the reorder level on a bar gate stock graph?
The stock level at which a new order for stock must be placed with the supplier.
What is lead time in stock control?
The time between placing an order with a supplier and the stock being delivered.
What are the steps to find the total stock delivered in a month from a bar gate stock graph?
e.g. deliveries of 500, 1,000 and 800 units are shown- Read the size of each delivery (each upward jump): 500, 1,000, 800
- Add the deliveries:
- State the total with units: 2,300 units
What is just in time (JIT) stock control?
Stock is delivered only as it is needed for production or sale, so little or no stock is held.
Which factors should a business consider in its relationships with suppliers?
Quality, delivery (cost, speed and reliability), availability, cost and trust.
What three things are affected by a business's logistics and supply decisions?
Costs, reputation and customer satisfaction.
Give one benefit to a business of having a good relationship with its suppliers.
It can negotiate cheaper prices, which reduces its variable costs.
(Also accepted: faster delivery, so it does not run out of stock.)