3 Business Operations Flashcards
1
Q
Just in case production
A
This holds stocks just in case there is a delay from supplies or a sudden unexpected increase in demand.
2
Q
Purchasing economies of scale
A
This occurs when the cost per unit falls if large orders are placed with suppliers due to a bulk discount
3
Q
Procurement
A
This involves selecting the suppliers , establishing the terms of payment and negotiate the contract
4
Q
What is the supply chain?
A
The supply chain refers to all businesses, people and activities that take part in the production process from the start until it gets to the customer
5
Q
What are logistics
A
Logistics refer to the movement of goods, services, information and money through the production process
