Further Work

This section looks at some other theories about purchasing and stock control and suggests some further work you may want to try. Before considering this it would probably be a good idea to have tried the worksheets on purchasing in the Cameron Balloons virtual factory.

A printable version of this further work is available for filling in answers.

Centralised and de-centralised purchasing

Some companies use a central purchasing department where all buying is done. This will often have the advantage that by buying in larger quantities, the firm may be able to get bulk-buying economies of scale. It may also help in the organisation and storage of stocks.

Other companies, however, choose a de-centralised system. Under this regime, each department buys for its own requirements and organises its own stock-control system. This should have the advantage that each department knows its own needs the best, and so is best able to make its own judgements about who to buy from.

Would a de-centralised system work well at Cameron Balloons? If not, why not? (N.B. If you are unsure of their existing system, you may want to look at the purchasing explanation section.)

Computerised stock control

The most sophisticated computerised stock-control systems will use technology similar to that which supermarket tills use. All raw materials will be bar-coded and the software will automatically monitor stock levels and warn when they are getting low. It can often be programmed to pick out any irregularities as well. This may help identify batches that were not of the right quality, and so many more were used.

What benefits is a system of this sort likely to have? Why might it not work in the case of Cameron Balloons? (N.B. To see some of the particular problems that Cameron's face why not look at the purchasing explanation section.)

Quality control

For some more detail on quality control and some of the issues this raises, look at the production further work section.