课 8, 主题 2

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2-3-2-Working-With-Suppliers

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Exam code:1BS0

Interpretation of bar gate stock graphs

A Bar Gate Stock Control diagram illustrates the flow of stock (inventory) into and out of a business over time

The maximum stock level is the maximum amount of stock a business is able to hold in normal circumstances (1600)
The reorder level is the level at which a business places a new order with its supplier (800)
The minimum stock level is also known as the buffer stock level and is the lowest level to which a business is willing to allow stock levels to fall (400)
The lead time is the length of time from the point of stock being ordered from the supplier to it being delivered (1 week)
The stock level line shows how stock levels change over the given time period
- As stock is used up, a downwards slope is plotted
- When an order is delivered by a supplier, the stock level line shoots upwards

The diagram below shows stock movements of kitchen shelving units sold by TamFix Ltd.

Identify the following points:

Step 1: Identify the minimum stock level

The minimum stock level is identified by the bottom-most dotted line. In this case it shows that the minimum stock level is 200 units (1)

Step 2: Identify the reorder level

The reorder level is clearly identified on the diagram. In this case, it shows that the reorder level is 500 units (1)

Step 3: Identify the reorder quantity

The reorder quantity is the difference between the maximum stock level (shown by the topmost dotted line) and the minimum stock level

$equals space 1000 space units space minus space 200 space units space equals space 800 space units$ (1)

Step 4: Identify the lead time for kitchen shelving units

The lead time is the difference in time between an order for stock being placed and its delivery
In this case, assuming a five-day working week, the lead time for shelving units is two days (1)

Efficient procurement of raw materials is crucial for ensuring the success of any manufacturing process
There are several factors that can influence the efficiency of raw material procurement

Businesses need to carefully consider these factors when sourcing raw materials to ensure that they can efficiently produce high-quality products at a reasonable cost

Factor	Explanation	Example
Quality	If the raw materials are of poor quality, then the final product may not meet the desired standards	E.g. a construction company may need to procure high-quality steel to ensure the structural integrity of a building.
Delivery	Companies need to ensure that their raw materials are delivered on time, at a reasonable cost, and in a reliable manner Many companies are now using an order and delivery process called just in time	E.g. a car manufacturer may need to ensure that their raw materials are delivered on time to avoid delays in production
Availability	Companies need to ensure that the raw materials they need are readily available (this is different to delivery on time)	E.g. Tesla uses cobalt in their batteries and needs to ensure they have a steady supply of this rare earth metal
Costs	Cost is a critical factor in raw material procurement Companies need to ensure that they are getting the best possible price for their raw materials without sacrificing quality	E.g. a textile manufacturer may need to source cotton at the lowest possible price to remain competitive in the market
Trust	Companies need to ensure that they are working with reliable suppliers who can deliver quality materials on time and at a reasonable cost	E.g. a construction company may need to work with a trusted supplier to ensure that their materials meet safety standards

Just in Time (JIT) stock management is a process in which raw materials are not stored onsite but ordered as required and delivered by suppliers ‘just in time’ to be used
Careful coordination is required ensure that raw materials and components are delivered by suppliers at the moment that they are to be used

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