IB Business Management HL 5.6.3 Stock control charts Question Bank
Practise IB Business Management HL 5.6.3 by applying stock control charts concepts to exam-style questions.
- Syllabus
- First assessment 2024
- Course
- Business management HL
- Level
- HL
Practise IB Business Management HL 5.6.3 by applying stock control charts concepts to exam-style questions.
Fair Coffee (FC)
David is about to open a small coffee shop, Fair Coffee (FC), at a central city location. On opening day FC will have a stock level of 500 kg of coffee beans. David estimates that the coffee beans will be used at a constant rate for the first six months of operation.
David's planned stock management figures for the coffee beans are shown below:

Lead time for delivery of the coffee beans: 1 month.
Using the information in the table, construct a fully labelled stock control chart for FC, for the first six months of operation.
The official stock control chart is provided as the answer image.

Award [1-2] for some understanding of a stock control chart. The stock control chart is drawn, but two or more lines or headings are omitted or incorrect.
Award [3] for a largely correct and labelled stock control chart. Up to one element is missing which does not include labelling buffer stock or re-order quantity.
Award [4] for a fully completed stock control chart that is correctly drawn. All the relevant headings, as appeared in the question, are correctly used and labelled. Candidates may be awarded full marks if the term buffer stock is not used and re-order quantity is not indicated or labelled.
If a candidate produces a table rather than a chart, award [0].
A delivery of coffee beans was 1 month late, arriving on the last day of the seventh month rather than the last day of the sixth month. Using figures from the chart you constructed in part (b), explain the effects of:
the late delivery on FC's stock level and;
A late delivery of one month will force F C to use its buffer stock [1] therefore,
FC will be left with 50 kg only at the end of the month when the new stock arrives [1].
For [2], figures must be included in the explanation.
Do not penalize candidates that use the correct figures without explicit use of the chart.
N.B. award a maximum of [1] if the answer is added to the chart drawn in part (b) and there is no explanation.
Award a maximum of [1] if there is no figure to support the explanation.
(ii) the late arrival delivering only 75 kg of coffee.
the late arrival delivering only 75 kg of coffee.
- The late arrival of only 75 kg , a lower quantity than normally ordered, on the last day of the seventh month will mean that David's stock of beans will be 50+75=125 kg, still below the 200 kg of the desired buffer/minimum stock level [1].
- Assuming the same level of consumption, FC will run out of stock and will not be able to supply all of its customers next month (the exact day is not required) [1].
Do not penalize candidates that use the correct figures without explicit use of the chart.
N.B. award a maximum of [1] if the answer is added to the chart drawn in part (b) and there is no explanation.
Award a maximum of [1] if there is no figure to support the explanation.
Award a maximum of [1] if the answer does not address the late arrival issue.