What is lead time?

• The costs a business has to pay to make a product

• The amount of time taken between an order being placed and an order being received

• A system of stock control where goods are only ordered and received just before they are required

Why might a company decide to choose a supplier located nearby?

• Being local means they will be easier to work with

• Transport and delivery costs are likely to be low

• Being nearby means that problems will always be sorted out quickly

When choosing a supplier which factor would have a direct effect on the standard of the finished product?

• The price of the products supplied

• The quality of the products supplied

• The lead time of the products supplied

What inventory description is given to goods that are half made or in assembly?

• Raw materials

• Works in progress

• Finished goods

What business outcome is the most likely result of overstocking?

• Money becomes less available to invest in other areas of the business

• Damage might be done to the reputation of the business

• It becomes difficult for a business to meet unexpected orders

What is the most likely outcome of understocking for a business?

• Loss of reputation because of an inability to meet an unexpected order

• The waste off large amounts of stored inventory because it has gone out of fashion or spoiled

• Higher storage and security charges

Which method of production produces one-off, unique products?

• Job

• Batch

• Flow

Which method of production relies heavily on automation?

• Job

• Batch

• Flow

Which method of production is most likely going to charge a premium price?

• Job

• Batch

• Flow

Which method of production uses the same production line and workforce to produce a selection of different food items?

• Job

• Batch

• Flow