Paper 1 Divider 11

Question 1

Achieving operational flexibility methods to manage supply to match demand (mass customisation)

Answer 1

• producing to order
• e.g, greeting cards, cars, furniture
• meeting customer needs, unique selling point
• if a product closely matches customer needs then its more likely to sell

Question 2

Part time temp staff

Answer 2

Hired for specific time periods, xmas

Question 3

Part time temp staff adv

Answer 3

Can lower costs because only paying labour when they are required

Question 4

Part time temp staff disad

Answer 4

Will need full time training, costly

Question 5

Outsourcing

Answer 5

Where one firm carries at the work of another business on behalf of the business

Question 6

Outsourcing adv

Answer 6

Avoids having to pay for staff and machinery all year round

Question 7

Outsourcing disad

Answer 7

If the subcontractor is close to full capacity could this result in delays

Question 8

Influences on the amount of inventory held

Answer 8

• inventory control chart: buffer stoc, minimum amount held to uncover unexpected demand
• re order levels: a new order is placed when stock reaches a certain level
• buffer stock: determines the re order level
• lead time: determines the re order level
• reorder quantity: the amount of stock ordered from a supplier

Question 9

Factors influencing choice of supplier

Answer 9

• price: low price could mean low quantity
• payment terms: trade credit, buy now pay later
• quality: poor quality in raw materials could cause production delays
• capacity: a firms needs suppliers to deliver on time and in full
• reliability: customer dissatisfaction for late delivery
• flexibility: suppliers need to be able to deliver more or less to reflect changes in customer demand

Question 10

Supply chains

Answer 10

A group of firms, e.g, suppliers, manufacturers, retailers

-which together perform all the processes required to manufacturer a finished product or provide a service to a customer