2.4 resource management Flashcards
what does resource management involve?
planning and control at every stage of the supply chain
productivity formula
number of workers/input
job production
products tailor-made to customer needs
batch production
producing a set number of identical items (also involves division of labour)
flow production
continuous flow of identical items
cell production
small production line with workers that produce products flexibly
factors influencing productivity
- technology ownership
- ability and skill of employees
- employee motivation
labour-intensive production
- more flexible more workers
- higher unit costs due to wages
capital-intensive production
- inflexible
- economies of scale
capacity utilisation
measures a firms current output level as a percentage of its maximum possible output
implications of under-utilisation
- higher fixed costs per unit = less profitable
implications of over-utilisation
- if demand rises the business will have to turn away customers
- struggle to service machinery - vulnerable to breakdowns
improving capacity utilisation
- increase demand
- cut capacity
- rationalization
- outsourcing
three types of stock
raw materials
work in progress
finished goods
what is buffer stock?
minimum stock level - firms keep this amount all the time just in case of supply delays/shortages
