A level Business Revision - Inventory Control

In this A level Business revision video, we examine inventory control diagrams, explaining the term maximum stock levels, 'buffer' stock levels, re-order levels, re-order quantities and lead times. We also investigate the reasons why some businesses decide to keep high levels of stock whilst others keep stock levels low.
Inventory control is a topic on the new AQA Business A level and the Edexcel Business A level.
Taking The Biz is a channel dedicated to A level Business revision.
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[@joikonkazama7996]

May God bless your soul sir, you saved me from my exam 🙏

[@charlenepang8190]

Hi Sir, can you do a tutorial on Just-in-Time Inventory control? Would really appreciate it!!

[@seanfreeman7147]

You explain everything so well. Thank you.

[@elizabethobeng6868]

Thank you so much, Sir. You're my favorite lecturer here. God bless you.

[@drenmatoshi929]

Great video as usual Sir, I have recommended you to many of my friends as a great revision tool! Can you potentially make a video on what you think may potentially come up for each of the 3 papers by analysing what has already came up in the practise papers. Also if you can do a video answering a 25 marker and how you would structure it? This would be greatly appreciated. Thanks

[@dipayanchakraborty4751]

One of the best lectures I have seen..Thanking you sir..

[@user-wg7ig5dn3x]

不用谢

[@jonathancook3236]

@@user-wg7ig5dn3x cok guzel

[@benanalqusayer7029]

Well explained! Thank you

[@jayeshm.s5590]

I really appreciate your efforts in providing relevant and significant information for AS/A level students, but can you please segregate the videos separately for AS level and A level?

[@kitgerman2579]

this is actually really useful. You target topics that we are likely to miss out due to the volume of essential information in the books, thanks

[@TakingTheBiz]

I'm glad you're finding the videos useful. Stay tuned over the weekend - plenty of theory videos coming out before Monday

[@MrImaddah]

thank you very helpful i just came to understand some term in data analysis for PowerBI but have food idea about stock Analytics now

[@lorrainewastie6568]

Hi I am studying Level 4 in CIPS and some of your videos have really good explanations thank you!

[@TakingTheBiz]

Wow - glad these videos are useful to non-A level students too. Thanks for the comment

[@aknad.5907]

Thank you so so much sir! Keep making these videos...I have an exam in school tomorrow and i did not quite understand the notes from class, and your video helped me a LOT!!!! Thank you so much! God bless.

[@TakingTheBiz]

You're very kind to leave such a positive comment - I hope the exam went ok!

[@bria4776]

Exams in a few hours and this actually cleared my head so well👏🏽👏🏽

[@ihisoka9118]

what exam? is it alevel?

[@carolinareardon5456]

Great video. Natural teacher. Clearly explained

[@TakingTheBiz]

What a kind comment! Thanks for the praise - good luck with your revision.

[@edgarchang2511]

nice and detailed

[@jihangunathilaka3643]

Its really good video

[@SANAZSOLEIMANI]

Really Useful 👏

[@nandanffasya]

thank you for your explanation, its really helpful

[@TakingTheBiz]

Glad it was useful. Thanks for watching!

[@cecyliasambala76]

Thank you sooo much

[@patty5807]

thank you so much bestieee💞💞

[@nancylindfield1125]

Thank you, so very useful. I will be using more of your tutorials

[@TakingTheBiz]

Thank you! Glad they were useful

[@kasmelaraines6392]

Great 👍 video 📸

[@pandit2716]

Thanks

[@ChsonlineOrgUkinternetschool]

Useful

[@annesneha8583]

Great video 🙏🏻👏🏻

[@TakingTheBiz]

Thank you so much for the positive comment - I hope the video was useful

[@CM-tp6un]

hi sir if you have time could you possibly visit Kaplan Scorecard and Greiner's model of growth. Thanks

[@alexanderwilson4471]

This is great!!!! Do you think that you will have the entire syllabus uploaded by October 30th?

[@TakingTheBiz]

Perhaps not the whole syllabus, but certainly a fair chunk. The whole spec will definitely be done by early 2018

[@hb3549]

Have you got videos covering the whole syllabus for Cambridge AS and A level business?

[@TakingTheBiz]

Most. Not all.

[@shamshair2415]

X axes is the days and y axes is the amount of the stock in the business on the top dotted line is know as the max stock level, however the bottom line is know as the buffer inventory it is the lowest level of its inventory business decides to hold !The blue line refers to the amount of stocks and the middle dotted line indicates the re order level it drop there when we contact out suppliers to place a order for the next deliever and the time we take to supply the inventory is known as the lead time. re order quantity is the differ between buffer and max stock level it tell how much stock we have delivered! The advantage of keeping a high level of inventory is it allows the business to meet the demand of customers for unexpected order, it continues the production, the more stock you keep you can benefit from ecnomics of scale. The dis adv are storing inventory can be costly you need a place for it, it can reduce the liquidity of a business thus firm keep a lower inventory, there are chances of going bad or being stolen and chances of breaking!

[@HShapi]

Omg pleaaaaaz be my bus teacherrrr

[@caucasianshepherdfamily6076]

i just got a job as stock controller in factory. they know i have no experience or qualifications. yet hiring me anyway. i was wondering what advice you have for me

[@psander987]

Could you please do a video on how to apply real life examples to businesses in 2017? In order to get that A*?

[@tsubameakiyama231]

You should try to have a "booklet" of businesses ready to go. For exapme BP, the oil company, could be used for CSR since they weren't very responsible. And u can explain why its bad to not be responsible and why its good. The exam on Friday asked about the triple bottom line and I mentioned half way through, how BP ruined their reputation due to the accident they had where it took employees lives. And then put an analysis in. For change, you could have blockbusters who didn't accept change and shut down or morrisons who took too long to go online so they were late and it caused them to be behind in terms of competing. For motivation you could have sports direct that has a hard approach and zero hr contracts etc. Which can cause demotivation For take overs or merges u could have asda and sainsburys, they wanted to merge but are havin difficulties because they could become to dominant in the market so the CMI got involved. Just do research into businesses, see what they are up to, and keep up with news on businesses.

[@Adam-hf7hn]

is it true that a business using JIT, will not be able to fully exploit purchasing economies of scale?

[@TakingTheBiz]

It is certainly likely that they will be unable to

[@tdofeldt5742]

10:10

[@CM-tp6un]

Sorry another request is how you could calculate re order level?

[@TakingTheBiz]

You don't really calculate the re-order level, it is just something that is decided upon by the business.

[@CM-tp6un]

TakingTheBiz there is a question on it in one of the specimen papers sir

[@TakingTheBiz]

Which board?

[@CM-tp6un]

TakingTheBiz AQA specimen paper 1, I think it's the locked paper

[@TakingTheBiz]

I see the question you mean. To work this out, the exam board have been a bit naughty, because you need to use the answer to the question before. In the question before, you had to work out the daily sales of the business. The answer is 16. To work out the re-order level, you take the 16 units that the business sells each day, work out how many units they would have sold during the 2 day lead time (32) and add on the buffer or minimum stock level (10). This means that when the order was placed, the firm must have been on 42 units of stock, because they still have a buffer stock of 10 when the order arrives and they sell 32 units during the two days that the stock takes to be delivered. 32 + 10 = 42. Hope this makes sense.

[@joegill5608]

Boshhhh