Production
What is the process of converting inputs into outputs?
Transformational Process
What is another term for stock held by a business?
Inventory
What is the maximum output a business can produce called?
Capacity
What is extra stock held for emergencies called?
Buffer inventory
What is the highest level of stock called?
Outsourcing
What production method is used for one-off, unique products?
Job production
What is work in progress?
Inventory which is still being produced
What is the percentage of capacity being used called?
Capacity utilisation
What is the stock level that triggers a new order called?
Re-order level
What is the main cost advantage of outsourcing?
Lower labour costs
Which production method involves producing items in groups
Batch Production
What do you call inventory which is ready to be sold
Finished goods
What is it called when output is below maximum capacity?
Excess capacity
What is the time between ordering and receiving stock called?
Lead time
What does a firm lose when it outsources production?
Control OVER PRODUCTS AND QUALITY.
What production method produces standardised products continuosly?
Flow Production
A business increases its average inventory from $200,000 to $500,000.
If the interest rate is 8% per year, what is the annual opportunity cost of this increase?
$24000
Free points
......
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Outsourcing is often done to which type of countries for cost reasons?
Low-cost countries
What production method combines high output with some variation?
Mass Customisation
What is extra inventory held to avoid shortages called?
Buffer Inventory
What is the capacity utilisation percentage at full output?
100%
What is the highest level of stock called?
Maximum inventory level
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