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Higher Business > Logistics > Flashcards

Logistics Flashcards

1
Q

what logistical management?

A

How the product is transported and distributed from the manufacturing site to the customer/store.

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2
Q

what are the methods of distribution?

A
  • road
  • rail
  • air
  • sea
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3
Q

what are the advantages of road distribution?

A
  • relatively low costs
  • arrives straight to destination
  • can be refrigerated
  • quick and convenient
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4
Q

what are the disadvantages of road distribution?

A
  • Road work delays
  • Weather delays
  • Not suitable for larger products
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5
Q

what are the advantages of rail distribution?

A
  • no issue of traffic builds up
  • faster than road
  • more environmentally friendly
  • convenient for bulkier products
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6
Q

what are the disadvantages of rail distribution?

A
  • no direct

- weather can have an impact

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7
Q

what are the advantages of air distribution?

A
  • faster methods for long distance

- useful for remote area

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8
Q

what are the disadvantages of air distribution?

A
  • very expensive
  • still require road transport to complete the delivery
  • not environmentally friendly
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9
Q

what are the advantages of sea distribution?

A
  • best for international trade

- allows huge amounts to be transported

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10
Q

what are the disadvantages of sea distribution?

A
  • slowest method

- no use for perishable items

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11
Q

what is distribution and logistics concerned with?

A

This is concerned with getting the finished goods to the right customer safety on time.

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12
Q

what are the types of ways a business can transport gods to customers?

A

Some organisations may choose to transport goods themselves other may employ as courier (DPD, Hermes. Yodel)

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13
Q

when deciding how to transport goods to customer they need to consider?

A
  • Cost of delivery/weight of product.
  • Type of product e.g. frozen food – chilled vans
  • Legal restrictions i.e. tobacco, alcohol – delivery must be licensed.
  • Finance available – next day delivery, first class
  • Reliability of courier
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14
Q

what are the two methods by which manufacturers produces goods?

A
  • labour intensive

- capital intensive

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15
Q

what was is capital intensive?

A

This is where the production process relies more on machinery and equipment instead of human input.

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16
Q

when is capital intensive suitable?

A

Suitable where the cost of machinery is more cost effective compared to labour (machinery cheaper than wages)

17
Q

when is capital intensive used?

A

Also used where the process is repetitive and requires precise, consistent output

18
Q

what are the advantages to capital intensive?

A
  • Can work 24/7
  • Standardized quality
  • Fewer employees (wages)
  • less skilled workforce required
19
Q

what are the disadvantages to capital intensive?

A
  • machinery/equipment is expensive initially
  • breakdowns can be excessive and cause production to stop
  • customisation difficult
20
Q

what is labour intensive?

A

This is where a business uses a larger proportion of human input than machinery in the production process.

21
Q

what is labour intensive suitable?

A

Suitable where he production process requires flexibility and customisability.

22
Q

what are the advantages of labour intensive?

A
  • for creative industries
  • labour is readily available (training required)
  • no expensive equipment
  • unique products
23
Q

what are the disadvantages of labour intensive?

A
  • Expensive and time consuming to recruit, select and train
  • Training takes time
  • Quality can vary (mistakes)
24
Q

capital intensive, what is batch production?

A
  • Groups of identical products being made at one time.
  • Different ingredients used for different groups – each batch will differ in flavour, colour etc
  • One group is made then machines are cleaned, and another batch of flavour is made.
25
Q

capital intensive, what is flow production?

A
  • Involves identical products being made along a production line.
  • Products being produced flows through various stages with parts being added at each stage (each stage adds value)
  • Continuous output of identical products.
  • Tends to be mainly capital intensive.
  • Mass production with use of machinery (automation
26
Q

what can capital intensive production be?

A

Capital Intensive production can be either automation or mechanisation.

27
Q

what is automation?

A

Refers to the product being fully automated. This uses CAM (computer aided Manufacture) to control fully automated assembly lines.

28
Q

what are the advantages of automation?

A
  • Production time is quicker and can be repeated constantly without errors.
  • Accuracy is far greater because there is no human error.
  • There is no requirement for workers to man the machinery, so this saves money.
  • The work environment is safer as employees will not be in automated work areas while production takes place.
29
Q

what are the disadvantages of automation?

A
  • There is no flexibility as the machinery can only do what it is programmed to do.
  • More machinery to complete production means more pollution and, in some cases, environmentally unfriendly fumes.
  • It causes unemployment to increase, which has an economic impact on a country.
  • Machinery breaks down are expensive.
30
Q

what is mechanisation?

A

Refers to labour and machines working together on the production of a product.

31
Q

what are the advantages of mechanisation?

A
  • Standardisation can be pre-programmed, allowing production to be consistent.
  • Machinery improves the accuracy of work and complete difficult tasks for the worker.
  • Using labour allows for production issues to be flagged up quickly.
  • Labour can be trained in becoming an expert at operating machinery.
32
Q

what are the disadvantages of mechanisation?

A
  • Initial set-up costs are high.
  • Machinery could break down and idle time is a negative factor.
  • Machinery needs to be updated and upgraded often which can be expensive
  • Labour needs to be trained, which is expensive. They will probably also require training whenever machinery is guarded.
33
Q

labour intensive - what is job production?

A
  • Company produces a single product or small number of products to specific requirements.
  • May be a one-off job (unique) to suit a customer’s particular requirement.
  • Emphasis on ‘tailor made’ design.
  • One job is finished before another is started.
34
Q

what factors should be considered when choosing a method of production?

A
  • The skills of the workforce
  • The finance available to the organisation
  • The technology available to support the organisation
  • The size of the business
  • The nature of the product being made
  • The demand for the product – the number to be produced
  • The standard of quality required

Higher Business (44 decks)

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