Explain what is meant by just-in-time stock control in the following situation. A small producer of fresh soup receives vegetables from nearby growers each ...

Assessment: Business 9225 | Paper 1 Mock 01 | Written Paper 1 Subject: Business - 9225

Question 1 Report

Explain what is meant by just-in-time stock control in the following situation. A small producer of fresh soup receives vegetables from nearby growers each morning. It keeps very little food in storage because unsold vegetables quickly lose quality. The operations manager checks expected orders before arranging each delivery.

(a) What is meant by just-in-time stock control? [1]
(b) Explain one benefit of this system for the soup producer. [2]

Answer Details

(a) Just-in-time stock control means stock is delivered only when it is needed for production [1], rather than being held in large quantities for a long period.

(b) The soup producer holds less perishable food in storage [1]. Vegetables are therefore less likely to spoil, reducing waste or storage costs and protecting profit [1].

Exam focus: Just-in-time is particularly useful for food that loses quality quickly, but it depends on reliable deliveries.

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