National 5 Business - Operations

Which of the following is not a role of the operations department?

• Making the products

• Ensuring the quality of production

• Managing stock levels

• Creating advertisements

Where does the operations department get the information for what product to make?

• Competitors

• Market Research

• Internet

• Makes it up

Which of the following is not a factor to consider when selecting a supplier?

• cost of raw materials

• lead time

• location

• brand

What is meant by lead time?

• How long it takes to make an item

• The time between placing the order and it being delivered

• The time between dispatch and receiving the items

What is it called when we have too much stock?

• understocking

• overstocking

What are the consequences of under stocking?

• production might stop

• customers become unhappy

• unexpected orders can't be met

• stock doesn't go out of date

Which of the following are consequences of over stocking?

• risk of theft

• cash flow problems as money is tied up in stock

• high warehouse costs

• unexpected orders can be met

What external factor can have the largest impact on a business that over stocks?

• Political

• Social

• Competitive

• Economic

What is the maximum stock level?

• lowest amount of stock that should be stored at one time

• quantity of stock stored

• the highest amount of stock that can be stored

• time between ordering and delivery

What is buffer inventory?

• highest level of inventory

• inventory that has gone out of date

• inventory that we cannot use

• a small amount of inventory that is kept back to meet unexpected orders