Lesson 2.4.3

2.4.3 Stock control and lean production Quiz: Pearson Edexcel Business, Unit 2

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 2.4.3, Stock control and lean production: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 2: Managing business activities, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. On a standard stock control diagram, what variable is plotted on the vertical y-axis?

    • Stock level
    • Time in weeks
    • Unit cost
    • Reorder frequency

  2. What is the main purpose of holding buffer stock?

    • Minimising storage costs
    • Handling unexpected demand
    • Maximising capital usage
    • Eliminating lead times

  3. Which issue is a direct result of holding insufficient stock?

    • Stock wastage
    • Tied-up cash
    • Stock-outs
    • High storage costs

  4. Which feature is characteristic of Just-in-Time (JIT) stock management?

    • Zero buffer stock
    • Long lead times
    • High stock levels
    • Bulk buying discounts

  5. What is a key financial benefit of implementing Just-in-Time (JIT) stock control?

    • Quantity discounts
    • Decreased lead times
    • Higher buffer stock
    • Reduced holding costs

  6. What is a major risk associated with Just-in-Time (JIT) stock management?

    • Tied-up working capital
    • Excess stock decay
    • High holding costs
    • Production line disruption

  7. In lean production, what does waste minimisation primarily focus on eliminating?

    • Product price discounts
    • Buffer stock levels
    • Market research costs
    • Non-value-adding activities

  8. How does lean production primarily provide a business with a competitive advantage?

    • Lowering unit costs
    • Raising selling prices
    • Extending lead times
    • Increasing buffer stocks

  9. A business holds stock of 800 units and uses 200 units a week. How many weeks of stock does it hold?

    • 800 weeks
    • 0.25 weeks
    • 200 weeks
    • 4 weeks

  10. A business uses 100 units weekly with a 2-week lead time. Excluding buffer stock, what is the reorder level?

    • 400 units
    • 100 units
    • 200 units
    • 300 units

  11. Which factor directly increases the risk of a business experiencing a stock-out?

    • Large buffer stocks
    • Unpredictable lead times
    • High reorder levels
    • Low customer demand

  12. What is a major financial drawback of a business holding too much stock?

    • Lower profit margins
    • Cash tied up
    • Higher tax liability
    • Increased loan interest

  13. What is the primary objective of effective stock control?

    • Minimising total costs
    • Eliminating all suppliers
    • Maximising storage space
    • Increasing batch sizes

  14. What is the immediate financial impact when a business successfully reduces average inventory?

    • Cash released
    • Revenue growth
    • Share price rise
    • Tax reduction

  15. Which element does lean production specifically aim to eliminate?

    • Waiting time
    • Quality standards
    • Customer feedback
    • Worker training

  16. On a stock control diagram, which line or level triggers a new purchase order?

    • Lead time line
    • Buffer stock
    • Maximum capacity
    • Reorder level

  17. A business uses 50 units a day and its supplier takes 6 days to deliver. Ignoring safety stock, what is the reorder level?

    • 3,000 units
    • 6 units
    • 50 units
    • 300 units

  18. What is the main purpose of holding a buffer stock?

    • Reducing unit price
    • Boosting sales volume
    • Increasing batch output
    • Covering lead uncertainty

  19. Why might a manufacturer using Just-in-Time (JIT) still keep a small emergency reserve?

    • Large warehouse space
    • Slow production lines
    • Supplier delays
    • Excess cash reserves

  20. What is a common consequence of poor stock control leading to sudden stock-outs?

    • Higher dividends
    • Reduced staff
    • Surplus storage
    • Emergency orders

All Pearson Edexcel Business quizzes