business paper 2

• Revenue


  Amount of money the business has generated from sales
• Gross profit


  Revenue - Cost of sales
• Inventory (stock) control graph

  1. Maximum stock level

  2. Reorder level

  3. Lead time

  4. Buffer stock level
• Flow production


  Continuous production with high demand
• Efficiency


  Making best use of resources
• Flow production


  Production method where products are always in high demand so they can be produced 24/7 on machines (capital intensive)
• Productivity


  The quantity that is produced
• Efficiency


  Making the best use of resources
• Productivity vs Efficiency example

  • Basketball player 1 makes 6 out of 10 shots (more productive)
  • Basketball player 2 makes 5 out of 7 shots (more efficient)
• Stock control


  Ensuring the right quantities of supplies are available
• Just-in-time


  Producing goods only as they are needed to reduce waste and inventory
• Procurement


  Sourcing the right suppliers with the right quantities, delivery times, and quality
• Logistics


  Delivering products on time to customers
• Quality control


  Checking the quality of finished products, may not check every single item
• Centralization


  All decisions made at the center of the organization, branches are the same
• Decentralization


  Decision-making passed down to lower levels of the hierarchy, branches may have different products
• 3 mark questions: Why (explain a benefit/drawback) or How (explain a way to do something)
• 9 mark questions: Balanced argument, conclusion justifying choice
• 12 mark questions: Balanced argument, conclusion with alternative suggestion
• Tips: Read questions first, annotate case study, manage time, ensure balanced arguments