S3 Business - Operations

Business operations is the department in a business that is responsible for:

• Marketing

• Finance

• Production of goods/provision of services

• Human resources

Raw materials are...

• The different items needed to make something

• Bits of material or fabric

• Materials extracted from the ground

The different factors taken into consideration when choosing a supplier are called...

• The Purchasing Mix

• The Purchase Mix

• The Purchased Mix

If a company uses poor quality raw materials the final product will...

• also be poor quality

• cost less to make

• be quicker to make

Which is NOT a disadvantage of UNDERstocking?

• A business might not be able to cope with an unexpected order which will upset customers
• Production may have to stop which means staff paid for not working
• More frequent rush orders will need to be placed which increases admin costs
• Greater risk that inventory will deteriorate or be stolen

Which is NOT a disadvantage of OVERstocking?

• High storage costs e.g. warehouse staff costs and rental of space
• Company money is tied up which could be used more effectively elsewhere
• A business will not be able to cope with an unexpected rush order
• Higher risk of theft and deterioration of stock

The risk of dissatisfied customers who do not get their deliveries on time is a disadvantage of ..

• Understocking
• Overstocking

Higher costs such as warehousing, security and rental of larger store rooms is a risk of ...

• Understocking
• Overstocking

Raw materials are purchased and labour is employed refers to:

• Process
• Output
• Input

The production process commences refers to:

• Output
• Input
• Process