Edexcel A-Level Business Theme 2.4 Resource management overview quiz quiz

Flow production

Batch production

Cell production

Job production

200 units per worker per week

80,000 units per worker each week

20 units per worker every week

4,000 units per worker per week

It raises unit costs by adding extra fixed overheads onto each unit

It lowers unit costs by spreading fixed costs over more output

It has no effect on the cost per unit at all

It only ever affects the variable costs

$133\%$

$25\%$

$75\%$

$7,500\%$

Unit costs become far too high because fixed costs are spread over too little output

Large amounts of resources and machinery sit idle

All of the fixed costs disappear entirely

No slack for maintenance, new orders or surges, risking quality and burnout

The minimum stock kept as a safety reserve against delays or surges

The absolute maximum stock level that a firm is physically able to hold

Stock that has already been sold to customers

Stock that is ordered on a just-in-time basis

Holding very large buffer stocks at all times to be safe against shortages

Ordering stock to arrive exactly when needed, holding minimal inventory

Never placing any orders from outside suppliers

Storing a full year's worth of stock all at once

Assurance simply inspects only the finished product at the very end of the production line and rejects faults

They are two identical processes

Assurance builds quality into every stage to prevent faults, rather than inspecting at the end

Control reliably prevents all faults

Quality is solely the job of a dedicated team of inspectors at the end

Quality should be formally checked only once a year

Quality has no real effect on costs

Quality is everyone's responsibility, with continuous improvement

Rationalise by cutting capacity to match demand, or boost demand through marketing

Deliberately reduce customer demand even further than it already is at the present time

Increase the firm's fixed costs

Hold a much larger level of buffer stock