BUSINESS OPERATIONS

Question 1

what is a supply chain?

Answer 1

group of firms that are involved in all processes needed to make a product

Question 2

what is a distributor?

Answer 2

someone who buys products from a manufacturer and sells them to other people

Question 3

what is a retailer?

Answer 3

someone who sells products directly to customers

Question 4

what are some factors firms consider when choosing a supplier?

Answer 4

price - if within budget, if they want fast deliveries, quality
quality (must be consistent)
reliability - need high quality products on time

Question 5

what is procurement?

Answer 5

finding and buying thinmgs a firm needs from suppliers outside the business

Question 6

what is logistics?

Answer 6

getting goods/services from one part of the supply chain to another

Question 7

why does good logistics and procurement improve efficiency?

Answer 7

the business will have the necessary supplies at the right time. overall costs are reduced - don’t waste money by being inefficient since they have the best material

Question 8

what are the benefits of a good supply chain?

Answer 8

good relationship with suppliers - makes sure processes are efficient and cost-effective
find best price
reduce waste/unnecessary costs - more streamlined (effective) and faster production

Question 9

what is job production?

Answer 9

making products individually - each product is unique

Question 10

what are the advantages to job production?

Answer 10

high quality
customer satisfaction
more sales -> more profit
good brand image

Question 11

what are the disadvantages to job production?

Answer 11

expensive - retool
longer process
need high skilled workers
labour intensive
staff training

Question 12

what is flow production?

Answer 12

continuous production

Question 13

what are the advantages of flow production?

Answer 13

easier
faster
familiarity
low cost per unit -> economies of scale
cheaper
machinery/quality systems are the same

Question 14

what are the disadvantages of flow production?

Answer 14

open 24hrs
requires lots of space
initially expensive
boring/repetitive for workers

Question 15

what is lean production?

Answer 15

how businesses can increase efficiency

Question 16

what is just-in-time (form of lean production)?

Answer 16

aim to keep stock levels at the bare minimum - usually calculated by computers

Question 17

what are the disadvantages of JIT?

Answer 17

may not be on time -> run out of stock
calculated wrong
requires lots of coordination
lose out on economies of scale

Question 18

what are the benefits of JIT?

Answer 18

reduces cost of keeping stock
fresh stock
improve productivity

Question 19

what is just-in-case stock control?

Answer 19

method where there are buffer stocks at each stage

Question 20

what are the advantages of JIC?

Answer 20

less risk of lost/no stock
better supply rates
efficient
market products regularly

Question 21

what are the disadvantages of JIC?

Answer 21

can be left with with stockpiles -> expensive to store
risk of shrinkage (products expiring)
slow growth - money can’t be spent on other factors
need lots of storage

Question 22

define customer service.

Answer 22

assistance and advice provided by a company to those people who buy or use its products

Question 23

what are the benefits of maintaining quality?

Answer 23

more profit -> customers are willing to pay more for better quality
more sales
better reputation

Question 24

what are the drawbacks of maintaining quality?

Answer 24

costly
staff training needed
inspection
if not maintained - loss of sales, disrupt services, product returns(recalls) -> affect reputation

Question 25

how can quality be measured?

Answer 25

physical properties
how many products get returned
customer surveys

Question 26

what are the 3 stages at which quality is checked?

Answer 26

1. check raw materials from suppliers
2. random samples of work in progress
3. random sample of finished product

Question 27

what is total quality management?

Answer 27

continual process of detecting and reducing errors in manufacturing - every employees duty to make sure quality is consistent

Question 28

what are the drawbacks to TQM?

Answer 28

long time to introduce
staff training
demotivated staff - extra work

Question 29

why does rapid growth make it hard to maintain quality?

Answer 29

expensive to carry out necessary inspections
overwhemled - cut things short to make things faster

Question 30

what are some solutions to maintaining quality under rapid growth?

Answer 30

more staff BUT need training - time consuming
franchisor -> will need to carry out regular checks
outsourcing - expensive

Question 31

name steps of the sales process

Answer 31

1. finding potential customers
2. approaching them
3. assessing customer needs
4. presenting product/service
5. closing
6. follow up

Question 32

why is good product knowledge important?

Answer 32

any questions can be answered fast and accurately
make sure customer is getting most suited product
customer feels confident

Question 33

what is important for good customer service?

Answer 33

good product knowledge
engaging well with customers
offering post-sales service

Question 34

why is e-commerce good for customer service?

Answer 34

24hr ordering -> easier for customers
FAQs
online accounts
social media - updated
communication with customers - live chats
fast and easy

Question 35

what are the benefits of good customer service?

Answer 35

customer satisfaction
loyal customers
spend more - more sales ->profit

Question 36

what are the drawbacks of good customer service?

Answer 36

dissatisfied customers -> complaints
poor reputations
lose sales