N5 Management of Operations

What is the function of the operations department?

• To manufacture products

• To advertise products

• To sell products

• To distribute products

The operations department processes inputs into outputs during the ______ process. This adds value allowing a profit to be made.

• Payment

• Production

• Purchasing

• Suppliers

Which factor wouldn't really influence a business making a choice of supplier?

• The price charged by the supplier

• The reliability of the supplier

• The type of transport used by the supplier

• The lead time of the supplier

The factors of production relate specifically to which of the following within the production process?

• Inputs

• Process

• Outputs

Which of the following is the operations department involved with?

• Manage levels of stock

• Working with suppliers to ensure raw materials are available

• Making the products - involving people or machinery

• Deliver the product to the business

Factors to consider when choosing a supplier are known as the...

• Marketing Mix

• Lead Time

• Marketing Segments

• Purchasing Mix

What is lead time?

• A system of stock control where goods are only ordered and received just before they are required

• The amount of time taken between an order being placed and being received

• The costs a business pays to make a product

• The quality and quantity of raw materials provided by the supplier

If raw materials are not delivered on time, production may have to stop. Which purchasing mix factor would be the cause of this?

• Quality of raw materials

• Quantity of raw materials

• Lead time

• Cost of raw materials

Answer explanation

Without raw materials being delivered on time, production might have to stop which is costly to the business.

Which of the following are consequences of having too little stock?

• It costs money to store stock

• Production might stop if there are not enough raw materials

• Customers might not receive orders on time and unexpected order cannot be met

• Money is tied up in stock that could be used for other purposes

Stock has a higher risk of going out of date this is...

• A consequence of having too little stock

• A consequence of the marketing mix

• A consequence of desk research

• A consequence of having too much stock