Page 28 - 8025 - Controlling and locating stock Learner Guide.docx

ADVANCED

RISK MA
Hastening level

The level when the quantity of stock is in not sufficient to meet orders. The suppliers need to be
contacted to hasten the delivery of replenishment stock.
Just in time reordering

Just in Time (JIT) re-ordering aims to have stock items arrive in the warehouse just in time to be
placed in an order and despatched. The amount of stock held in reserve is minimised.
JIT is based on several years study of the customers ordering patterns and supply times.

JIT re-ordering can:
 Reduce the amount of stock that is needed to be stored

 Minimise the paper work.
For JIT to work effectively there needs to be:

 A supplier who is reliable and efficient. The supplier should also not be too far away from the
warehouse

 Low levels of defective stock.
 Frequent deliveries of small quantities of stock

Just in time ordering can reduce the costs of running a warehouse.

Pull Reordering system: KANBAN

KANBAN is a system in which cards or tickets are used to let the supplier know when more stock is
required.
KANBAN is used together with Just in Time so that the customer sets the delivery date of the stock
items.

The delivery plan works back from this date.
The despatch date, assembly of the order, and the ordering of the items from the supplier are re-
arranged to meet the customers desired delivery date.

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