AQA · GCSE · Business
Course version: 8132 · Version from Sept 2017
Students should be able to evaluate the use of managing stock using JIT to…
Full specification wording
The role of procurement: Students should be able to evaluate the use of managing stock using JIT to a given business.
Evaluation means weighing JIT's benefits against its risks for the specific business in the case, then reaching a supported judgement.
Checked against the AQA 8132 specification (opens in a new tab) on .
- Point 2 of 21
- 4 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Evaluation means weighing JIT's benefits against its risks for the specific business in the case, then reaching a supported judgement. JIT means materials arrive as production needs them, so stock is minimal. Benefits: less capital tied up in stock, lower storage and insurance costs, less waste from damage or obsolescence. Risks: no buffer against late deliveries, supplier failure, or sudden demand rises, so production can halt and customer goodwill suffer. A car plant with reliable nearby suppliers may gain; a bakery relying on distant imports may not. Weigh the business's supplier reliability, cash position, demand predictability and product perishability, then judge whether JIT suits it.
What earns the marks
- Defines JIT accurately: stock ordered to arrive just as it is needed for production or sale, keeping stock levels minimal.
- Explains at least one financial benefit, such as reduced capital tied up in stock, lower storage, insurance or waste costs.
- Explains at least one operational risk, such as production stopping if deliveries are late or demand unexpectedly rises.
- Applies the analysis to the given business's context, for example its supplier reliability, cash flow, demand pattern or product type.
- Reaches a supported overall judgement stating whether JIT is suitable for that business and why, rather than listing points only.
Common mistakes and how to put them right
Describing JIT as simply 'having no stock' rather than stock arriving as needed.
Put it right by explaining the timing principle and the need for reliable deliveries.
Listing benefits and drawbacks without linking them to the case business.
Put it right by naming the business's own suppliers, products or cash position in each point.
Giving a one-sided answer with no judgement.
Put it right by ending with a clear conclusion that weighs both sides for that business.
Exam tips
- Underline the business details in the case before writing, then use at least two of them as evidence in your evaluation.
- Use connectives such as 'however' and 'therefore' to build the chain from benefit or risk to consequence for the business.
- Reserve time for a final paragraph that states your overall judgement and the single strongest reason for it.
Try the lesson
The start of the The role of procurement: Students should be able to evaluate the use of managing stock using JIT to a given business. lesson, made from checked teaching notes for this specification point.
Have a go first
A bakery switches to just in time stock management, ordering flour only when its current supply is nearly used up. Which statement describes a likely benefit of this change for the bakery?
Listen
Evaluation means weighing JIT's benefits against its risks for the specific business in the case, then reaching a supported judgement. JIT means materials arrive as production needs them, so stock is minimal. Benefits: less capital tied up in stock, lower storage and insurance costs, less waste from damage or obsolescence. Risks: no buffer against late deliveries, supplier failure, or sudden demand rises, so production can halt and customer goodwill suffer. A car plant with reliable nearby suppliers may gain; a bakery relying on distant imports may not. Weigh the business's supplier reliability, cash position, demand predictability and product perishability, then judge whether JIT suits it. A strong answer earns marks for these points. Defines JIT accurately: stock ordered to arrive just as it is needed for production or sale, keeping stock levels minimal. Explains at least one financial benefit, such as reduced capital tied up in stock, lower storage, insurance or waste costs. Explains at least one operational risk, such as production stopping if deliveries are late or demand unexpectedly rises. Applies the analysis to the given business's context, for example its supplier reliability, cash flow, demand pattern or product type. A common slip: Describing JIT as simply 'having no stock' rather than stock arriving as needed. Instead, explaining the timing principle and the need for reliable deliveries. Exam tip: Underline the business details in the case before writing, then use at least two of them as evidence in your evaluation.
Key words
Say what each word means before you turn the card.
JIT
Try answering aloud or in your head before turning the card.
Evaluation
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Operational risk
Try answering aloud or in your head before turning the card.
Contextual judgement
Try answering aloud or in your head before turning the card.
See every definition
- JIT
- Stock is ordered to arrive just as it is needed for production or sale, keeping stock levels minimal.
- Evaluation
- Weighing JIT's benefits against its risks for the specific business in the case, then reaching a supported judgement.
- Operational risk
- No buffer against late deliveries, supplier failure or sudden demand rises, so production can halt and customer goodwill suffer.
- Contextual judgement
- Weighing the business's supplier reliability, cash position, demand predictability and product perishability, then judging whether JIT suits it.
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