Production Method
This production method creates one unique product at a time.
What is job production?
This is another word for stock.
What is inventory?
This is the formula used to calculate capacity utilisation.
What is actual output ÷ maximum output × 100?
This means using external firms for production.
What is outsourcing?
This method produces goods in groups or batches.
What is batch production?
This type of stock prevents shortages.
What is buffer stock?
If a business has unused resources, this is likely low.
What is capacity utilisation?
One benefit of outsourcing.
What is lower costs?
This production type is used for mass, standardized goods.
What is flow production?
This system reduces stock to a minimum.
What is Just-in-Time (JIT)?
One advantage of high capacity utilisation.
What is lower unit costs / efficiency?
One risk of outsourcing.
What is loss of control?
This is a disadvantage of job production.
What is high cost / time-consuming?
This is a cost of storing inventory.
What are holding/storage costs?
One disadvantage of high capacity utilisation.
What is lack of flexibility / overuse of resources?
This is why firms outsource internationally.
What is cheaper labor / cost reduction?
This production method is most efficient but least flexible.
What is flow production?
A major risk of JIT.
What is running out of stock / supply delays?
If output = 5,000 and max = 10,000, calculate utilisation.
What is 50%?
A strategic risk of outsourcing.
What is dependency on suppliers?