Mock Flashcards
(7 cards)
1
Q
what are the 5 stages of the product life cycle?
A
1) development
2) introduction
3) growth
4) maturity
5) decline
2
Q
how would a business extend a products life cycle?
A
- reduce price to increase demand
- change promotional methods/increase the promotion
- improve/change the product
- find new distribution channels
3
Q
how do you calculate ARR?
A
1) find the average annual profit after taking away the capital inflow
2) divide the average annual profit by the capital inflow
3) convert to percentage
4
Q
how to calculate percentage change?
A
new-old
———— x100
old
5
Q
what is JIT?
A
just in time manufacturing is where the materials used or stock required for production arrives just as it’s needed
6
Q
what’s a benefit of JIT?
A
- no need to hold lots of stock therefore decreasing cost of renting big warehouses
- no need for buffer stocks
- improved cash flow as money is not tied up in stocks
- reduces waste especially if items are perishable
7
Q
what’s the drawbacks of JIT?
A
- need a really reliable supplier else deliveries may be late decreasing reputation
- hard to cope with sudden increases in demand
- may lose bulk buying economies of scale as you aren’t ordering in huge quantities
