Chapter 17

Question 1

Productivity

Answer 1

Output measured against inputs used to create it, e.g. labour
Productivity = output per time period / number of employees

Question 2

Inventory

Answer 2

Materials, work in progress or completed goods held by a business which are or will
be ready for sale.

Question 3

Buffer inventory level

Answer 3

Inventory held to deal with unexpected changes, e.g. in consumer demand or
suppliers’ ability to deliver.

Question 4

Lean production

Answer 4

Cutting out waste and inefficiency in the production process.

Question 5

Kaizen

Answer 5

Continuous improvement through the elimination of waste.

Question 6

Just-in-time

Answer 6

Reducing or eliminating the need to hold inventories of materials and finished goods.

Question 7

Job production

Answer 7

A single product is made at a time

Question 8

Batch production

Answer 8

A quantity (batch) of one product is made, then a quantity of another item will be
produced (e.g. bread, dresses)

Question 9

Flow production

Answer 9

Large quantities of a product are produced in a continuous process.