Business operations (Paper 1)

Question 1

Define supply chain

Answer 1

• The group of firms that are involved in all the various processes required to make a finished product or service available to the customer

Question 2

What does a supply chain typically include

Answer 2

• Suppliers
• Manufacturers
• Distributers
• Retailers

Question 3

What could happen if any members of the supply chain are unreliable

Answer 3

• The product might not be on the shelves when it needs to be
• The quality of the product might be poor

Question 4

What factors influence a businesses choice in suppliers

Answer 4

• The total cost of getting the product
• Consistency of supply quality
• Reliability of timings

Question 5

Define procurement

Answer 5

• Finding and buying things that a firm needs from suppliers outside of the firm

Question 6

Define logistics

Answer 6

• Getting goods or services from one part of the supply chain to another

Question 7

Benefits of effective procurement and logistics

Answer 7

• No breaks in productions
• No wasted resources
• Reduces overall costs

Question 8

Benefits of maintaining an effective supply chain

Answer 8

• Good relationships with suppliers
• Finding the best price and value
• Reducing waste and unnecessary costs

Question 9

Define job production

Answer 9

• When a firm manufactures individual unique products

Question 10

Features of job production

Answer 10

• Unique design based on customer specification
• Often require skilled labour
• Take a long time
• Expensive
• High quality

Question 11

Define flow production

Answer 11

• When all the products are identical and the aim is to produce as many as possible along an assembly line