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.
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