11/9/23

Question 1

what is lean production?
what does business of lean production aim for?

Answer 1

-Lean production is a strategy business’s can use to make production more efficient
-They aim to use less resources as possible to have little waste

Question 2

what is just in time?
how does it work?
what is the benefit of using computer system?

Answer 2

-Jit is a form of lean production/jit for delivery to customers
-Jit aims to keep stock levels to the bare minimum-preferably zero
-Computer systems are usually used to calculate stock levels and automatically order more when supplies are needed

Question 3

What is one methods to manage stock?

Answer 3

Just in time (JIT)
-The main benefit is that it reduces the cost of having to keep stock
-The main problem is that it requires a lot of coordination between firm and its suppliers
-The firm needs to take lots of frequent deliveries of stock- this will be more costly for the firm. Also if any of these deliveries don’t arrive on time or there are mistakes with the order firm could run out of stock
-Jit also means firms buy in small quantities of stock rather than buying bulk. This means they lose out on purchasing economies of scale

Question 4

what is another method to manage stock?

Answer 4

JIC just in case
-JIC is method of operating production and distribution system with buffer stocks (EXTRA) of every items at every stage process-from raw materials to finished products .Just in case there is a supply shortage or customer demand increases unexpectedly
-The idea that even if there is any problems with the deliveries of raw materials buffer stocks mean there is still enough to satisfy demand so production can continue
-The main problem is that firms can be left with big stockpiles of items which can be costly store