Ops Management Taboo Game

[10mins]

TOPIC: Topic 5: Operations ManagementLESSON TITLE: Stock Control

COMPETENCY FOCUS:

Technological Impact (C4): students will develop their understanding of how technology has made an impact in the production process of products for a business.

[IB Learner Profile Development: Open-minded]

Learning ObjectivesBy the end of the lesson, you should be able to…

LO1) To identify 2 main methods of stock control

LO2) To explain the difference between just-in-case and just-in-time

LO3) To analyse the appropriateness of different stock control methods in different business contexts.

SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development.

CRITICAL THINKING KEY:

Knowledge Application Analysis Evaluation

Video Clip

http://www.tes.co.uk/teaching-resource/Just-in-time-delivery-6173331/

Stock-holding Costs

There are 3 costs associated with stock holding:

1) Opportunity cost (money is tied up in stock which could be put to better use)

2) Storage costs

3) Risk of wastage and obsolescence

Stock-holding Costs

Costs of not holding enough costs:

-Lost sales-Idle production resources-Special orders could be expensive-Small order quantities

Controlling Stock Levels

Independent Research Task

You will need to research one of the following and produce a presentation for the rest of the group:

-Just-in-case-Just-in-time (JIT)-Capacity Utilization-Outsourcing -Sub-contracting

Exam Practice

Revision Checklist P.g. 380

 

Exam Practice P.g. 381