Operations

Question 1

Inventory management levels

Answer 1

• Maximum inventory level
• Minimum inventory level
• Re-order level

Re-order quantity

Question 2

Just-In-Time Advantages

Answer 2

• No wastage of stock
• No money tied up in stock
• No warehouse required
• Less risk of theft

Question 3

Just-In-Time Disadvantages

Answer 3

• If deliveries are late business will under stock
• No room for error in production
• Business may not be able to meet extra demand
• Good relationship w suppliers required

Question 4

Storage of Inventory

Answer 4

• Centralised storage - one central place
• Decentralised storage - stored different places across organisation

Question 5

Methods of Production

Answer 5

LABOUR INTENSIVE - Human input eg hospitality

CAPITAL INTENSIVE - Machinery eg cars

MECHANISATION - Humans and machinery

AUTOMATION - IT controlling production

Question 6

Methods of Ensuring Quality

Answer 6

Quality Control - inspected end production

Quality Assurance - Each stage

Quality Circles - Managers meet regularly to discuss potential improvements

Mystery Shoppers

Question 7

Technology in Operations

Answer 7

CAD - Designing products so don’t need to make irl

CAM - Computers in manufacturing process

QR Codes

EPOS - Automatically order stock