3.4.5 Flashcards
1
Q
What is mass customisation?
A
Method of producing to order products are made after the order is placed. Combines flexibility of a custom made product with the low cost of mass production.
2
Q
3 costs that are involved in holding stock
A
Storage costs: eg rent for the warehouse.
Wastage costs: costs of throwing away useless stock
Opportunity cost: cost of investing money in stock instead of something else.
3
Q
What is lead time?
A
The time it takes for the goods to arrive after ordering them from the supplier.
4
Q
Reorder level formula?
A
Lead time (in days) x average daily usage +buffer stock
