Business Studies

• What is the definition of Just-in-time (JIT) production?


  The business manufactures only what it requires and receives its stock only when needed.
• What is one advantage of Just-in-time (JIT) production?


  It lowers the cost of holding stock and keeps up to date with the latest styles.
• What is a disadvantage of Just-in-time (JIT) production?


  Difficulties with unexpected demand could lead to lost sales.
• How does Just-in-time (JIT) production reduce waste?


  It reduces waste due to overstocking.
• What is a key requirement for Just-in-time (JIT) production to be effective?


  It requires accurate forecasting to manage and prevent disruption.
• What does Stock Control (SC) involve?


  Producing or ordering goods in batches for later sale.
• What is one advantage of Stock Control (SC)?


  It reduces the risk of stock-outs and meets consumer demand.
• What is a disadvantage of Stock Control (SC)?


  There is a risk of overstocking leading to storage costs and potential wastage.
• What is a potential issue with poor forecasting in Stock Control (SC)?


  It can lead to lost sales if there is insufficient stock.
• What factor does a business consider when choosing a supplier regarding price?


  The total cost of purchasing from different suppliers.
• What is a benefit of considering price when choosing a supplier?


  It enables competitive pricing, thereby achieving higher profit margins.
• Why is quality important in supplier choice?


  Quality needs to be consistent to assure customers and cater to their expectations.
• What is a benefit of consistent quality from suppliers?


  It develops strong customer loyalty and allows for premium pricing.
• What does reliability mean in the context of supplier choice?


  A business needs to trust that their products will be delivered on time and in full.
• What is a benefit of working with reliable suppliers?


  It cuts costs and risks by creating a streamlined process.
• What are the advantages and disadvantages of Just-in-time (JIT) production?


  Advantages:

  • Lower cost of holding stock
  • Produces goods to meet demand
  • Reduces waste due to overstocking
  • Frees up storage space
  • Quicker response to changes in demand

  
  

  Disadvantages:

  • Difficulties with unexpected demand
  • Supplier reliability issues
  • Requires accurate forecasting
• What are the advantages and disadvantages of Stock Control (SC)?


  Advantages:

  • Reduces risk of stock-outs
  • More flexible for demand fluctuations

  
  

  Disadvantages:

  • Risk of overstocking
  • High amount of cash tied up in stock
  • Poor forecasting can lead to lost sales
• What factors affect supplier choice?


  1. Price

  • Total cost of purchasing
  • Credit options

  1. Quality

  • Consistency
  • Customer loyalty

  1. Reliability

  • Trust in delivery
  • Efficiency of suppliers
• What are the benefits of working with efficient and effective suppliers?


  • Getting goods economically in a timely manner
  • Cutting costs and risks
  • Building good relationships with suppliers
  • Creating a streamlined process