Keep a Personal Checklist:

• What is meant by the supply chain process?

• Why are all businesses in the supply chain said to be interdependent?

• What is just-in-time stock control? 

• Outline the meaning of just-in-case stock control.

• What are the relative advantages of JIT and JIC stock control systems?

• Explain the three categories(types) of inventories.

• What are the costs of holding stock or stockpiling?

• What is a stock-out and why is it costly to a business?

• What is a stock control chart?

• Why do businesses hold a maximum and a minimum stock level (buffer stock)?

• Distinguish between the re-order level and the re-order quantity

• What is meant by an optimal stock level?

• Distinguish between a firm's productive capacity and its capacity utilization.

• Outline three methods that businesses can use to increase their capacity utilization.

• Explain how cost benefit analysis might be used in 'make or buy' decisions.

• What is productivity and how is it calculated?

• Distinguish between the cost to buy (CTB) and the cost to make (CTM).