Making operational decisions to improve performance: managing inventory and supply chains Flashcards

1
Q

What is producing to order

A

a business production strategy that typically allows consumers to purchase products that are customized to their specifications.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are 3 ways of matching supply to demand?

A
  • outsourcing
  • use of temporary and part time employees
  • producing to order.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Influences on amount of inventory held

A

interpreting inventory control charts

  • lead time
  • re-order levels
  • buffer level of inventory
  • re-order quantities.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Disadvantages of holding buffer stock

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Advantages of holding buffer stock

A
  • Negotiate a better deal with suppliers>if we have buffer stock it is likely we are purchasing large quantities>purchasing economies of scale
  • Manage uncertainty- we have extra stock we can reach into where we see unexpected rises in demand
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Advantages of outsourcing

A

Reduce costs>if supplier if able to supply at a lower cost i.g through economies of scale
-access specialist suppliers with greater capabilities and higher quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Disadvantages of outsourcing

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Benefits to part time/temp employees

A

-can be useful for periods where there a sudden surge in demand
-cheaper>paid hourly and not a salary>lower labour costs
-flexibility>business schedule when exactly we want or need them
-

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Disadvantages of part time/temporary workers

A
  • Part time so they only work there as it fits their lifestyle>less loyal>less motivated
  • more part time workers mean higher span of control(more subordinates)>it is more work for the manager>could impact communication throughout the business
  • lower staff retention>will need to train more workers>more costs for business to train workers and recruit them too. decreased profits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Influences on the choice of suppliers

A

Price-may go for a supplier who wants lower prices (though this COULD comprimise on quality)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Influences on the choice of suppliers

A

Price-may go for a supplier who wants lower prices (though this COULD comprimise on quality)
-Reliability- want someone who will provide when you need them to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Important of efficiency

A

labour costs usually one of the largest costs for a firm>keeping it low keeps increased profits
>

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Two methods of improving quality

A

quality assurance

quality control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Quality assurance features

A

Quality assurance-focusses on the prevention of defects during production process.
Is a process based approach
Manages quality during each step of the production process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Quality control features

A

Focusses on the identification of defects
Reactive process
Product based approach
Verify the quality before a good is sent off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly