Introduction

One of the key aims of production planning is to minimize the costs of holding stock/inventory while ensuring that there are sufficient resources for production to be able to meet customer demand in a timely manner. This chapter looks at the different types of stock control methods and their relative merits, and examines the need for businesses to recognize and establish their optimum stock levels in order to remain competitive.

Course curriculum

  • 1

    Course Information & Support

    • Huricane Milton Has Canceled The Rest of Chapter 5.5. Enroll Now & Start Chapter 5.6!

    • Please Check Now That Your Phone Is In Your Bag. Please Wait To Leave For The Bathroom Until The Last 5 Minutes Of Class.

    • Fact Sheet Packet Of Class Policies- Please Scroll Through And Review Again

    • How Well Are You Demonstrating The IB Learner Characteristics? Which Is Your Super Power & Which Presents The Greatest Challenge?

    • Welcome IB Business Management Student

    • Chapter Work Cycle = This Is What We Are Doing In Class & For Homework Every Day

    • Finished Early? Don't Pack Up! Do This ...

    • Please Don't Disrupt Our 40 Minute Work Cycle. Leave For The Bathroom During The LAST 5 MINUTES Of Class.

    • Your Quarter Grade

  • 2

    Your Notebook Is Your Most Important Weekly Grade & Prepares You For The May Exams

    • New Textbook 5.6 Chapter = 13 Headings

    • Read The Rules For Your Notebook Before Every Grading Day. This Paper Must Be Stapled Onto The Inside Cover Of Each Composition Notebook

    • Video: Watch A Spider Map Being Created (Best Study Tool)

    • How To Draw A Spider Map

    • LOOK: Page-By-Page Visual Instructions For Earning a 100% On Every Notebook Chapter. (NEW For 2024)

    • Video: Take A Tour Of A Business Management Composition Notebook

    • This Is How Your Notebook Pages Will Be Graded

    • How To Pronounce "Productivity" Correctly (In American English)

    • Notebook Checklist & Reflection Sheet- Print, Complete, And Staple Onto The Last Page Of Your Chapter Notes BEFORE Scoring Day. It's Best To Pick Up This Blue Color Checklist In Class After We Finish The Chapter Review.

  • 3

    "RESOURCE BANK" = Topic Lessons (55) Begin Below this Point:

    • What is the Resource Bank?

    • Take Good Notes - These Posts Contain The Content You Want To Write On The IB Exams

    • RB = 6 Sections & 55 Posts (= 3 RB Day + HW)

    • Key Objectives: What You Should Be Able To Do By The End Of This 5.6 Chapter

  • 4

    The Supply Chain Is Part Of The Operations Field Called "Logistics"

    • Video: 2021 Supply Chain Crisis Explained Through The Journey Of A Sweater

    • Handout: What Is Supply Chain Management?

    • The Supply Chain Process

    • Key Terms To Use In Your Exam Answers

    • Video: What Does A Supply Chain Manager Do?

    • Video: A Supply Chain Can Be Impacted By Forces Of Nature (Earthquake in Japan 2011)

    • Video: An Explanation Of The Covid-19 Global Supply Chain Crisis

    • Video: Details Of The 2021 Supply Chain Crisis & Recommendations

  • 5

    Inventory Control Is Also Called Stock Control

    • Handout: "Stock" Means Inventory

    • Video: What Is Inventory?

    • Handout: Stock Comes In 3 Forms

    • Handout: Intro To An Inventory Control Chart

    • Video: How Amazon Processes Their Stock

    • Video: How Amazon Moves Their Warehouse Inventory

    • Video: Key Parts Of An Inventory Control Chart

    • Video: What Does "Lead Time" Mean?

    • Video: The Importance Of Lead Time Forecasting

    • Video: Explanation Of A Stock Control Graph

    • Video: How To Calculate The Re-Order Level

    • Video: How To Calculate The "Economic Order Quantity" (EOQ)

    • Handout: Financial Consequences Of Holding Too Much Stock

    • Handout: Financial Consequences Of Not Having Enough Stock

    • Visual: What Happens When Inventory Is Not Managed Correctly

    • Summary Of Stock Control Chart

  • 6

    JIT VS. JIC

    • Video: Just In Time Vs. Just In Case (Toyota Example)

    • Handout: Advantages & Disadvantages Of Just In Time Production

    • Article: Just In Time Design Details (Kansas University Paper)

    • Handout: When JIT Is Not Best

    • Handout: How To Make JIT Successful

  • 7

    Capacity Utilization Measurement

    • Capacity Utilization Formula

    • Video: Explanation Of Capacity Utilization Concept

    • Video: How To Calculate Capacity Utilization

    • Video: Three Business Operations Calculations (C.U. starts at 2:38)

    • Key Terms Used In Capacity Utilization

    • Handout: How To Overcome Long-term Capacity Shortage Problems

    • Exam Review: Capacity Utilization

  • 8

    Defect Rate

    • What Are 4 Strategies For Reducing Defects?

  • 9

    Productivity

    • What Are The Elements That Make Some Businesses More Productive?

  • 10

    Labor Productivity

    • Handout: What Are The 4 Factors Of Labor Productivity?

    • Video: Introduction To Labor Productivity

    • Handout: Key Concepts Of Labor Productivity

    • Video: Labor Productivity & Calculation Practice

    • Video: How To Improve Labor Productivity

  • 11

    Capital Productivity

    • Manufacturing Productivity Is Similar To Capital Productivity

  • 12

    Operating Leverage

    • How To Calclate Operating Leverage

    • How Did The Pandemic Affect Operating Leverage?

  • 13

    CTB VS. CTM

    • Handout: Key Factors In CTB and CTM Decisions

    • Video: How To Calculate A Make Or Buy Decision

    • Video: An Example Of Make Or Buy Calculation Using With Bike Seats

    • Video: What Is A Cost-Benefit Analysis?

    • Test Yourself!

    • Uh oh. There Seems To Be An Error In The Second Table. Can You Find It? Hints Inside...

  • 14

    Production Planning & The CCES Concepts (Creativity-Change-Ethics-Sustainability)

    • Video: How Has Covid Impacted The Agricultural Supply Chain? (7 Min On RB Day 3)

    • 2022 Amazon Supply Chain Case Study: Take Notes & Use Info On The Exam!! (16 Min On RB Day 3)

    • Video: How Will Covid Change The Supply Chain? (6 Min On RB Day 3)

    • Article: The Global Pandemic's Impact On Supply Chain Management (= Change, Culture, Globalization, Innovation, Strategy) RB Day 3

    • Optional Video: MIT Business Professor Discusses Supply Chain Management Post-Covid (RB Day 3) Just Watch From 3:30-28:30 = 25 min.

    • Read These CCES Definitions. If You Write Them On Your May Exams You Get Credit For Clear Evidence of "Synthesis & Evaluation"

    • CCES Assignment: Write 4 CCES Impact Statements For This Chapter Following The Given Model

    • Finished Early? Don't Pack Up! Do This ...

  • 15

    Let's Do Some Case Studies

    • Visual Of Case Study Day 1 Process

    • Day 1 Participation Requirements During Sharing

    • Instructions For Case Studies Days

    • New Command Terms Definitions List (2024+) Exams = Rules for Answering Test Questions

    • Old Command Terms List = Rules for Answering Test Questions

    • Here Are This Chapter's 5.6 Case Studies For You To Analyze.

    • Clarification Of The Productivity Rate Calculation (Team 3)

    • Show Your Teacher Your Completed Case Studies Then ...

    • Visual Of Case Study Day 2 Process

    • Finished Early? Don't Pack Up! Do This ...

  • 16

    Review Activities

    • WATCH: 5.6 Chapter Review

    • Video: Mr. B's Review of Production Methods

    • Instruction Sheet for Worksheet Assignment

    • What Should You Do If You Get Stuck On A Question? Don't Skip It! Do This...

    • New 5.6 Review Worksheets With 8 Tasks 1-25 M/C (Title The Top Of A New Page. Then Label The Tasks And Write The Answers In Your Composition Notebook)

    • Put Away Your Pen & Pencil On Review Day- Only Have A Color Pen On Your Desk

    • 5.6 Quizlet

    • Have You Achieved the 5.6 Key Learning Outcomes?

    • Test Yourself! Use The Review Questions Listed At The End Of The Textbook Chapter

    • 5.6 Active Recall Flip Grid Assignment (Objective = Score A 7 For Business Management On Your IB Diploma )

    • Online Students: You Are Almost Finished!

    • Don't Forget The Last Piece!

    • Finished Early? Don't Pack Up! Do this ...

    • Memorize & Review The 5.6 IB Exam Formulas

  • 17

    BONUS CHAPTER - CAREERS IN PRODUCTION PLANNING (No Notes Required)

    • Video: Think About A Career In The Supply Chain Industry

    • Video: Meet A Production Planner

  • 18

    The Business Management Extended Essay- Discuss Your Progress With Your EE Advisor

    • Where Are You With The BM EE?

  • 19

    5.6 Quiz Scheduled

    • Come Here On Quiz Day If You Are In The Classroom - Makeups Are On The Day You Return

    • Visual: Quiz Day Schedule Of Activities

What's Next

What can you do to prepare for the May exams? Check out your BM Exam Prep course.