Specifications that use this resource:

Teaching guide: inventory control chart

Highlights issues relating to inventory management such as the re-order level, re-order quantity, usage rates and lead time.

Model/theory

Key points

In the diagram above:

  • inventory is re-ordered at 100 units (buffer stock)
  • the re-order quantity is 500 units
  • 500 units are used up each month
  • a re-order is placed at 350 units
  • the lead time (time from reorder to delivery) is 2 weeks.

When you can use this

When considering inventory management and factors affecting:

  • the level of buffer stock
  • re-order quantities
  • re-order levels
  • usage rates
  • lead times.

You could also consider:

  • what happens if usage rates increase unexpectedly
  • what happens if inventory is too high or too low.

Where it's been used

  • Q15, A-level paper 1 2018

  • Q2, A-level paper 3, 2018

  • Q17.1, A-level paper 1, SAM set 2

  • Q17.2, A-level paper 1, SAM set 2

  • Q6, AS paper 1, 2017

  • Q9, AS paper 1, 2016

  • Q10, AS paper 1, SAM set 1