Operations

Question 1

What are the 4 points of sale promotions?

Answer 1

Price reduction-encourages first time try
Loss leader-sold bellow cost - entice customer into shop
Competition-often for high value - customers spread message
Free samples-gets customers to try

Question 2

What is Batch production?

Answer 2

Where One type of product is made, and then production is switched to make a different product.

Question 3

What is flow production?

Answer 3

Production of one product that takes place continuously using a production assembly line

Question 4

What is job production?

Answer 4

Production where products are made individually

Question 5

What is one advantage and disadvantage of job production?

Answer 5

Advantage– The business can charge a high price and make a good profit.
Disadvantage – can be a high cost method of production because of skilled workers.

Question 6

What is one advantage and disadvantage of batch production?

Answer 6

Advantage– It is cheaper than job production.
Disadvantage – machines need resetting between different batches, which costs money.

Question 7

What is One advantage and disadvantage of flow production?

Answer 7

Advantage – Large quantities are produced
Disadvantage – May not be of high quality

Question 8

What are two advantages of using technology in production?

Answer 8

Machines can replace workers, reducing costs.
Waste is reduced as machines are usually more accurate than humans.

Question 9

What are two disadvantages of using technology in production?

Answer 9

Machines can breakdown disrupting production.
New technology may be expensive to buy.