I am going to relate the stock control and forecasting techniques that Cadbury use

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C3: The relationship between stock control and
forecasting techniques

Used in the production methods employed

For this part of my assignment I am going to relate the stock control and forecasting techniques that Cadbury use with the production methods that Cadbury use.

     When Cadbury buy stock, it has to be considered carefully by Cadbury, the correct quantities of the stock should be purchased to reduce the amount of wastage should be controlled so that loses are controlled.

Cadbury purchases its main ingredient cocoa beans from Ghana, which is then taken to marlbrook where the cocoa beans are cleaned and grounded. After this they are imported to the UK in the Bourn Ville factory where the production of the product is completed.

Cadbury knows how much stock that has to be purchased due to the time series analysis that is done. The time series analysis shows historical data which Cadbury use to analyse and predict the future trends of the sales of products.

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 This is the reason for why Cadbury needs to ensure that the time series analysis is accurate and up to date so that Cadbury can produce enough products so that there is no wastage or shortage of products, this is also meeting the customers demands. If Cadbury decided to purchase more stock than needed then Cadbury would be overspending its money and the wastage figure is likely to increase because more products than needed are being produced and it would be wastage because if the trend continues that the time series analysis shows then customers are less likely to purchase ...

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The student states the term 'stock', however within business this is often known as 'inventory'. This would show the examiner that the student understands basic business technical terms.

The student acknowledges that if the price increases, there is less demand. This is correct. However the student hasn't explained why the product may increase/decrease. The major factor is the cost of producing the product, alongside all their other costs of packaging, advertising, etc. The product price is a certain % above the cost price. If their cost price increases (for example, the raw cost of coca beans increases), the retail price may increase.

In summary, the report is quite good. The report states a number of factors which could impact upon the price of the products that Cadbury's sell. However one section, does link the factor to the cost of the product, and some points aren't justified. The student clearly understands a basic concept, of that if Cadbury's purchase too much stock/inventory the business will not be able to sell all of their products. This in turn, would result in the business making a loss, which the student understands. The report states that suitable employee's have to be employed by the business. However the student doesn't mention the cost impact on the business if the business employs unsuitable employees. The price of the product would have to increase, if there are unsuitable employees working at the business, this is due to that this is an additional unnecessary cost, which would have to be added to the cost of producing the product. However on the flip side, the section 'Security', the student does understand the cost of this, which would impact on the price of the product.