1. Learning Objectives Recall the two stock control methods: JIT and JIC Be able to identify stock control problems on Stock Control Charts and suggest solutions

2. Example… Stock Control Methods

3. Examples Here are examples of firms using JIC and JIC during one week at their shops. Firm 1 uses JIC and Firm 2 uses JIT They are scheduled to get a delivery every day of 50 CDs Every CD sold makes a profit of £10 At the end of the day it costs £1 to store a CD overnight in the warehouse

4. Firm 1: JIC MonTueWedThuFri Start of Day 200 100 Delivery 50 No Delivery 50 Demand 50 10050 End of Day 200 150100 Cost of holding stock £200 £150£100 Profit on each Unit sold £500 £1000£500 Daily Profit £300 £350£900£400

5. Firm 2: JIT MonTueWedThuFri Start of Day 00000 Delivery 50 No Delivery 50 Demand 50 10050 End of Day 00000 Cost of holding stock £0 Profit on each Unit sold £500 £0£500 Daily Profit £500 £0£500

6. Questions… 1.How can you tell that Firm 1 uses JIC and Firm 2 uses JIT? 2. Which firm makes the most profit on: i) Monday and Tuesday ii) Wednesday iii) Thursday? 3. Why is one method better on Monday and Tuesday whereas another is better on Wednesday and Thursday? 4. How much more profit does the Firm 1 by using JIC stock control during the entire week? 5.Under what circumstances would JIT be a better method of stock control?

7. Stock Control Charts Final topic for the Production Module…

8. Stock Control Charts Show how stock levels change over time. Help firms to manage their stock levels

9. Stock Control Charts Stock Level Time

10. Stock Control Chart Examples

11. ProblemsSolutions Example 1 Example 2

12. Examples ProblemsSolutions Example 1 Low level of stocks More buffer stocks JIC Example 2 High level of stocks Less stocks (especially as reliable suppliers) JIT

13. Learning Objectives Recall the two stock control methods: JIT and JIC Be able to identify stock control problems on Stock Control Charts and suggest solutions