N5 Operations

The operations department is responsible for:

• Selling of products
• Manufacturing of products
• Aftersales of products
• Returning products

Adding value to a product will mean that:

• Profit can be made
• Quality is assured
• Customers will buy the product
• No returns are made

Raw materials are purchased and labour is employed refers to:

• Process
• Output
• Input

The production process commences refers to:

• Output
• Input
• Process

The finished product is ready for consumers to purchase refers to:

• Output
• Input
• Process

A business makes a low budget product which item will influence their choice of supplier most

• Delivery time
• Quality of raw material
• Price of raw material
• Location of supplier

Apple will be most likely to consider which options when choosing a supplier

• Quantity, delivery time and storage space
• Quality, delivery time and reliability of supplier
• Location of supplier, price and delivery time
• Price, delivery time and storage space

Inventory that is currently being made is called

• Raw materials

• Work in Progress

• Finished Goods

Holding too much inventory is called

• Understocking

• Overstocking

• Raw Materials

• Finished Goods

Understocking causes problems such as:

• Shortage of materials and a bad reputation
• Higher admin costs and more profit
• Late delivery of materials and increased sales