20 Identify and explain two advantages to this business of using just-in-time inventory control. [4]

[BASEL Moderator]

Rafiq is the Operations manager at a small factory. The business makes a range of soft drinks using batch production. Last year Rafiq successfully introduced just-in-time inventory control, based on an idea from one of the 40 employees. As the business is planning to expand, Rafiq thinks it would be a good idea to change to flow production

RAFIQ.JPG (16.65 KiB) Viewed 1 time

20 Identify and explain two advantages to this business of using just-in-time inventory control. [4]

Possible KN Points:
• Less inventory held
• Lower costs
• Less warehouse space
• Improve working capital
• Improve cash flow
• Increased motivation
• Improved quality