Operations activity can be broken down as....

• Output - Process - Input

• Process - Output

• Input - Process - Output

• Input - Output

Input can be described as......

• Land, labour, capital, enterprise

• Job production, batch production, flow production

• Goods

• Services

How do we choose our suppliers?

• They are our friends but their reputation for business is bad

• They are companies we don't know about

• They are dependable, reliable and offer competitive prices.

• They are as far away as possible

What is meant by delivery time / lead time?

• The time it takes from order to delivery.

• The time it takes the driver to drive from home to work.

• The mileage travelled

• The amount of time the goods sits in storage at the suppiler

Having an overstocked supply of goods means what for a business?

• Customers go to competitors

• All inventory never goes out of date

• Inventory is never at a risk of being stolen.

• Money is tied up in inventory so may cause cashflow problems

Storage facilities must always ...

• be open for all to use

• store any type of product or goods

• must be safe and secure

• forget about having inventory control

What is meant by re-order quantity?

• This is the stock level that ensures that there will always be stocks available for production

• This is the amount of stock required to return stock levels to economic stock level on the same day that new stocks arrive.

• This is the level at which new stock should be ordered.

• This is the stock level that permits activities to continue without interruption but incurs the minimum cost for the company.

Which of the below are problems relating to overstocking?

• Customers have too many options to choose from.

• Costs relating to storage may be high.

• Cash is tied up in stock.

• Stock could perish, deteriorate or become obsolete.

What are the disadvantages of using the Just-In-Time method of stock control?

• Customers have to wait a long time for their item.

• Requires very reliable suppliers

• Possibility of not coping with unexpected demand

• Wastage of stock is reduced

Which method of production would be used for bespoke wedding cakes?

• Job Production

• Batch Production

• Flow Production