2.3.2a Interpreting bar graph stock charts and just in time stock control Quiz: Pearson Edexcel Business, Unit 8

The 20 questions

1. What is the primary aim of just-in-time stock control?

   • Maximise buffer stock
   • Increase bulk buying
   • Minimise holding costs
   • Extend storage time

2. What does the height of a bar represent on a stock chart?

   • Number of staff
   • Quantity of stock
   • Total sales revenue
   • Market price

3. Stock fell from 300 units in January to 120 in February. What was the drop?

   • 300 units
   • 120 units
   • 180 units
   • 420 units

4. Which stock control method involves ordering supplies only as they are needed?

   • Buffer stock
   • Just-in-time
   • Maximum stock
   • Bulk purchasing

5. What is a key operational risk of using just-in-time stock control?

   • Outdated warehouse goods
   • High storage costs
   • Excess unsold stock
   • Late delivery delays

6. Which cost does just-in-time stock control most directly reduce?

   • Borrowing interest
   • Marketing costs
   • Storage costs
   • Labour wages

7. A business records stock levels of 80, 60, 90 and 40 units over four weeks. What was the average weekly stock held?

   • 70 units
   • 67 units
   • 65 units
   • 67.5 units

8. A stock chart shows a sharp monthly drop in inventory with steady sales. What is the likely cause?

   • Lower production output
   • Higher bulk purchasing
   • Late supplier delivery
   • Increased storage space

9. What is the main benefit of holding buffer stock?

   • Lowers material costs
   • Reduces storage fees
   • Improves cash flow
   • Prevents production stoppages

10. Why does just-in-time production depend heavily on reliable suppliers?

    • Slow manufacturing rates
    • No reserve stock
    • Excess raw materials
    • High storage capacity

11. Which supplier trait makes just-in-time stock control easiest to manage?

    • Unpredictable lead times
    • Distant warehouse locations
    • Infrequent bulk drops
    • Reliable quick deliveries

12. What condition makes just-in-time stock control most effective?

    • Unreliable transport links
    • Highly seasonal sales
    • Volatile consumer trends
    • Predictable steady demand

13. What does a business stock level measure?

    • Value of machinery
    • Total annual profit
    • Number of employees
    • Quantity of goods

14. A business starts the month with 200 units of stock, buys 150 units and ends the month with 90 units. How many units were used or sold?

    • 240 units
    • 110 units
    • 350 units
    • 260 units

15. Which product is most suitable for low stock levels under a JIT system?

    • Non-perishable materials
    • Long-life canned goods
    • Fresh food
    • Heavy machinery parts

16. What is a major disadvantage of holding large stock levels?

    • Lower storage needs
    • Frequent production halts
    • Higher delivery delays
    • Tied up cash

17. What action should a manager take when stock levels fall steadily over six weeks?

    • Sack the suppliers
    • Stop ordering stock
    • Raise selling prices
    • Place reorder early

18. What is the best response for a Just-In-Time business with variable supplier delivery times?

    • Ignore lead times
    • Hold buffer stock
    • Double order size
    • Stop holding stock

19. What is the term for extra stock held to cover unexpected demand or late deliveries?

    • Wasted stock
    • Buffer stock
    • Finished stock
    • Maximum stock

20. Which financial benefit does Just-In-Time stock control provide to a business?

    • Improved cash flow
    • Lower sales revenue
    • Increased borrowing
    • Higher tax bills

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