Nat 5 Business Operations

Operations activity can be brocken down as....

• Output - Process - Input

• Process - Output

• Input - Process - Output

• Input - Output

Input can be described as......

• Land, labour, capital, enterprise

• Job production, batch production, flow production

• Goods

• Services

How do we choose our suppliers?

• They are our friends but their reputation for business is bad

• They are companies we don't know about

• They are dependable, reliable and offer competitive prices.

• They are as far away as possible

What is meant by delivery time / lead time?

• The time it takes from order to delivery.

• The time it takes the driver to drive from home to work.

• The mileage travelled

• The amount of time the goods sits in storage at the suppiler

Having an overstocked supply of goods means what for a business?

• Customers go to competitors

• All inventory never goes out of date

• Inventory is never at a risk of being stolen.

• Money is tied up in inventory so may cause cashflow problems

Storage facilities must always ...

• be open for all to use

• store any type of product or goods

• must be safe and secure

• forget about having inventory control