Section B — Analyse: just-in-time stock control

Khan’s Bakery supplies fresh artisan bread to 12 cafés in central London. The owner is considering switching to a just-in-time (JIT) stock control system.

Analyse one benefit to Khan’s Bakery of using a JIT stock control system. (6 marks)

Mark scheme (6 marks) — Levels-based:

• Level 1 (1–2): Limited knowledge of JIT (e.g. ‘stock arrives just before needed’). Generic, no application to bakery.
• Level 2 (3–4): Applied analysis — links JIT to the bakery context (e.g. perishable bread, fresh ingredients, central London premises with limited storage). One developed chain.
• Level 3 (5–6): Logical chains of analysis fully applied. E.g. JIT means flour and yeast arrive only when needed (K) → reduces stock holding costs and waste from spoiled ingredients (App: bread is highly perishable) → improves cash flow because capital is not tied up in stock → frees cash for the owner to invest in marketing to the 12 cafés or expand to new ones (Analysis). Recognises trade-off implicitly (reliability of suppliers in central London).