Operations:

Question 1

What is Operations Management?

Answer 1

The process that uses resources to provide the right goods or services for the consumer

Question 2

What are Operational Objectives?

Answer 2

Specific, focused targets of the operations management function

Question 3

What are Unit costs?

Answer 3

The total cost of producing one unit

Question 4

What is Quality?

Answer 4

A product or service’s ability to meet or exceed customer expectations and needs

Question 5

What is Speed of Response?

Answer 5

The time taken for customer requirements to be fulfiled

Question 6

What is Flexibility?

Answer 6

The ability for an organisation to adapt it’s operations

Question 7

What is the Maximum Level in an Inventory Control Chart?

Answer 7

Max level of inventory a business can or wants to hold

Question 8

What is the Re-Order Level in an Inventory Control Chart?

Answer 8

Acts as a trigger point, when inventory falls to this level, the next supplier order should be placed

Question 9

What is the Lead Time in an Inventory Control Chart?

Answer 9

Amount of time between placing the order and receiving the inventory

Question 10

What is the Minimum Inventory Level in an Inventory Control Chart?

Answer 10

Minimum amount of product the business would want to hold in stock
- When the minimum stock level is more than zero it is called buffer stock

Question 11

What is the Buffer Stock in an Inventory Control Chart?

Answer 11

An amount of inventory held as contingency in case of unexpected orders so that such orders can be met and in case of any delays from suppliers

Question 12

What are the Advantages of Just in Time Stock Control?

Answer 12

• Improves the firm’s
  liquidity
• The costs of holding
  stocks are reduced
• Storage space can be converted to a more productive use
• Stock wastage and stock
  rotation become lesser issues for management
• Response times to changing demands are speeded up as new components can be ordered instantly