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Business Studies

Stock control

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Just in time

Inside a warehouse a worker is collecting a crate of stock from one of the many rows of shelves using a small fok lift truck

A fork lift truck collecting stock in a warehouse

Just in case stock control is costly. To reduce spending and improve competitiveness, a business can switch to an alternative method of stock control called just in time. With just in time, a business holds no stock and instead relies upon deliveries of raw materials and components to arrive exactly when they are needed. Instead of occasional large deliveries to a warehouse, components arrive just when they are needed and are taken straight to the factory floor.

The benefits of reduced warehouse costs must be balanced against the cost of more frequent deliveries and lost purchasing economies of scale from bulk buying discounts.

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