Operations Flashcards
(7 cards)
What is Operations all about
Operations is all about The Inputs process and outputs
What are the factors when choosing suppliers
Cost of raw materials, The Quality of raw materials, Lead/ delivery time, Location of supplier, reliability, storage space available or Quantity.
What are the Stock Levels?
The Stock levels are Maximum stock, Re order stock level and minimum stock level.
What are the problems with overstocking ?
High costs of storage, High Insurance costs, High security costs, The business will have a lot of money tied up in stock, The stock may go out of fashion and have to be thrown away, Finally the stock may deteriorate.
What are the problems with understocking?
The problems are: That the business may run out of stock to sell, unexpected changes in demand are hard to deal with, If orders are delayed then shelves may be left empty, If the customer cannot get stock then they may go elsewhere, High administration costs caused by re ordering stock all the time.
What are the production methods?
The production methods are Job Production, Batch production And Flow production.
Describe each method of Production?
Job production is where a single product is made from start to finish before another product is started, Batch Production is when A group of identical products are made in groups these products are made via a Mixture of Machines and people. Finally Flow production involves Passing an identical product down a line of production, At each stage of the line A different operation is carried out.