Operations N5 part 1

Operations activity can be brocken down as....

• Output - Process - Input

• Process - Output

• Input - Process - Output

• Input - Output

Input can be described as......

• Raw materials used in production of goods

• 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 lead time?

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

• The amount of time taken to deliver the supplies

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

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• All inventory never goes out of date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

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 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

Type of inventory

• finished products

• work in progress

• raw material

• stock

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