Business 3

Question 0

Describe a stock control chart

Answer 0

Its the ZigZag Chart, with stock amount on one side and the time across the bottom. A buffer stock is set, the minimum amount wanted to be sold.
Experience is then used to set a max stock level, and a re order amount.
From this, order quantity and lead time can be found

Question 1

What is a Design Mix?

Answer 1

A method of differentiating from competitors in a business. It contains 3 sections - apperance, Cost, and function with different levels of focus given to each factor.

Question 2

What is it called, the amount of time it takes for stock to arrive after re-ordering from a stock control chart?

Answer 2

Lead Time

Question 3

Describe Stock

Answer 3

Stock is the amount of material or finished products a business currently holds. Orders of this must be carefully controlled to prevent loss of stock or potential profits

Question 4

Describe 3 Problems with ordering too much stock

Answer 4

Not enough storage space, Food may go out of date, Technology in particular may become obsolete and outdated.

Question 5

Describe 3 problems with ordering too little stock.

Answer 5

Loss of potential profits, loss of repeat customers, Stores may look empty and unattractive,

Question 6

Name the three types of stock stored within a business.

Answer 6

Raw materials, semifinished materials, finished materials.

Question 7

What are the two types of stock control?

Answer 7

Just in case, where a buffer is used, or just in time without.

Question 8

Define just in case stock control. Adv

Answer 8

this is a type of stock control with a buffer, giving less risk to the business should unexpected events occur. Businesses can meet unpredicted changes in demand, replace damaged goods and receive discounts for bulk buying

Question 9

Define just in time stock control. Adv.

Answer 9

This is where a buffer stock is not used, and stock is bought near to when it is needed. It gives a cost saving in terms of storage, there is less chance of damaged/stolen stock, and employees can focus on tasks that are more productive.

Question 10

Name 3 costs of holding stock

Answer 10

Staff/ Systems
Storage
Intrest loss when stock bought, less money in bank

Question 11

Define imports + Exports

Answer 11

imports is the process of a uk citizen or business buying in products or services, exports are the other way round.

Question 12

Define Visible and Invisible exports/Imports

Answer 12

Visible = Tangiable, product that can be held
Invisible = Intangiable, such as loan

Question 13

3 reasons why Britain trades

Answer 13

We can bring in more products that cannot be found here such as minerals to increase quality of life, can increase foreign relations, can fill market that would otherwise not have a high enough quantity.

Question 14

Name the two ways to improve quality and describe them

Answer 14

Quality control - inspector at end of production
Quality Assurance - inspected at each stage, aims to involve the whole workforce and improve production so that it may become zero defect

Question 15

Name 3 benefits of a quality system

Answer 15

Reduces waste/cost
improves reputation
can improve selling price
can improve sales volume
can provide a unique selling point

Question 16

3 differences between quality control, quality assurance

Answer 16

Assurance = medium to long term, slow to impliment, focus on each process rather than end product, aims to improve process rather then individual procuct, emphasizes customer rather than standars, quality built into product, rather than defects inspected out

Question 17

Name 3 negatives of quality control

Answer 17

costs, time consuming training, disruption to production at start

Question 18

What is productivity/formula?

Answer 18

increasing the amount that can be made with the resources available. Productivity = goods purchased divided by number of workers

Question 19

Name 3 benefits of productivity.

Answer 19

The average cost of the unit is Lower, prices could be Lower, profits could be higher.

Question 20

2 ways increase productivity

Answer 20

Use new technology, control stock so less waste

Question 21

what is customer service?

Answer 21

The experience the customer gets when dealing with a business AND the extent to which that experience meets expectations

Question 22

Why is customer service beneficial (3)

Answer 22

Better public image
Edge over competitiors
improved sales

Question 23

how to provide good customer service?

Answer 23

meet needs of customers, have high quality in identifying problems etc. , provide on time service, Develop innovation

Question 24

describe the trades description act.

Answer 24

you cant : give false information, failed to give important information, or act aggressively

Question 25

describe the sale of goods act

Answer 25

The product must: match description, be satisfactory quality, be fit for purpose.

Question 26

What is a quota?

Answer 26

A limit to the amount or value of goods that can be imported or exported from a country.

Question 27

what is a tariff?

Answer 27

A tax imposed on goods being imported or exported from the country.