Purchasing

Question 1

What is purchasing?

Answer 1

The acquisition of raw materials or products by a business

Question 2

What are the three methods of stock control?

Answer 2

• just-in-case stock control
• just-in-time stock control
• computerised stock control

Question 3

Just-in-case stock control

Answer 3

The business keeps a certain amount of stock in reserve to allow for problems such as late delivery by suppliers or unexpected demand

Question 4

Just-in-time (JIT) management of stock

Answer 4

Raw materials only arrive when they are needed

Question 5

Computerised stock control

Answer 5

Can be used for either just-in-case or JIT, and is the process of checking stocks using a computer system, which will reorder any items that have been identified as required e.g. supermarket self checkout when you scan the barcode