Inventory management

Explain two methods that PC may use to improve its cash flow.

March 2018

Analyse one advantage and one disadvantage to PC of buying the computerised inventory management system.

March 2018

Define what is meant by the term ‘Just in Time’ (JIT).

March 2019

Identify one feature of JIT inventory management.

March 2024

Evaluate whether RCR should introduce Just in Time (JIT).

March 2025

Define ‘inventory management’.

Summer 2016

Explain the costs and benefits for a business of choosing to keep inventory levels low.

Summer 2016

Define 'lead time' (lines 4–5).

Summer 2016

Analyse why effective inventory control matters to a manufacturing business.

Summer 2017

Define the term 'buffer inventory' clearly.

Summer 2017

In a few words, define ‘buffer inventory’ (line 6).

Summer 2017

Using Table 1, Calculate MM’s acid test ratio.

Summer 2017

Explain one method MM could use to improve its liquidity.

Summer 2017

Define the meaning of ‘inventory management’.

Summer 2018

Analyse two methods Jacqueline could use to strengthen PP’s cash flow.

Summer 2018

Evaluate Jacqueline’s decision to target the mass market.

Summer 2018

Analyse the benefits and drawbacks for a retail business of using Just in Time (JIT) to control inventory.

Summer 2019

Using Table 1.1, Calculate the new closing balance for Month 3 if each month's inventory storage costs increase by 20%.

Summer 2019

Explain one advantage for WL of keeping inventory.

Summer 2019

Explain why effective inventory management is important for a manufacturing business.

Summer 2020

Analyse two possible disadvantages for FF of using Just in Time (JIT) to manage inventory.

Summer 2020

Define what is meant by the term 'inventory reorder level'.

Summer 2021

Analyse the possible disadvantages for a business when it moves from batch production to flow production.

Summer 2021

Explain one advantage and one disadvantage to BU from offering a range of sizes and colours of the Classic belt.

Summer 2021

Analyse the benefits to a business of using mass customisation.

Summer 2022

Explain why a business might decide to keep inventory levels low.

Summer 2022

Define the term ‘lead time’ in line 5.

Summer 2022

Analyse two advantages to MC of Just in Time (JIT) inventory control.

Summer 2022

Analyse two advantages to a business of holding high levels of inventory.

Summer 2023

Analyse two benefits to a business of government grants as a source of finance.

Summer 2023

Explain what the term just in time (JIT) means.

Summer 2023

Define what is meant by outsourcing.

Summer 2024

Analyse two benefits to a business of improving the sustainability of its operations.

Summer 2024

Explain one cost for SW of retaining inventory.

Summer 2024

Analyse two drawbacks to CS of using a JIT approach to inventory management.

Summer 2024

Define what is meant by inventory re-order level.

Summer 2025

Define what is meant by Just in Time (JIT).

Summer 2025

Analyse, using examples, why packaging may be important in the marketing mix.

Winter 2016

Discuss the ways in which the operations management department of a car manufacturing company could support the business in surviving an economic recession.

Winter 2016

Use Fig. 1. Identify the size of: • maximum inventory level • buffer inventory level • re-order quantity.

Winter 2017

Explain one way in which an inventory control chart could be used by RBP.

Winter 2017

Analyse two disadvantages to RBP of holding a high level of inventory.

Winter 2017

Define the meaning of the term ‘inventory’ (line 9).

Winter 2017

Briefly explain the meaning of ‘lead time’ (line 11).

Winter 2017

Explain the costs and benefits to a business of keeping low levels of inventory.

Winter 2018

Define what is meant by ‘lead time’.

Winter 2018

Discuss which stakeholders of CL are likely to be most affected by the introduction of just-in-time (JIT) inventory management.

Winter 2018

Explain the ‘buffer inventory control method’ used for managing inventory (lines 5–6).

Winter 2019

Explain one function of John’s role as an operations manager.

Winter 2019

‘Effective inventory management is the most important function of the operations management department in a manufacturing business.' Discuss the extent to which you agree with this view.

Winter 2020

Analyse the advantages for a business of using a Just in Time (JIT) inventory management system.

Winter 2021

Define the term ‘buffer inventory’ (line 18).

Winter 2021

Analyse two disadvantages to QF of holding a high level of inventory.

Winter 2021

Define the term 'inventory' shown in line 7.

Winter 2022

Analyse two ways in which operations contribute to added value in a business.

Winter 2023

Analyse two possible consequences for BB of using a just in time (JIT) approach to inventory management.

Winter 2023

Analyse one reason why a business might keep inventory levels low.

Oct/Nov 2025

Kelp Kings (KK). Kelp (or seaweed) farming means growing and collecting seaweed. Farmers take the kelp from natural beds in the sea. This type of farming has a low environmental impact. KK holds a licence to harvest and exploit a section of seabed in country W. After harvesting, the kelp is dried and packaged at KK’s premises before being sold to food manufacturers. KK is a labour intensive social enterprise with a mission to ‘benefit the planet by the most efficient use of natural resources’. In 2020 KK chose to build a kelp refinery. The estimated cost was $5 million and KK would have to borrow most of this amount. The refinery would use kelp as a raw material to produce a pulp that can be used in the manufacture of biodegradable plastics. Timeline of KK: 2021 - The Operations Director introduces Just in Time (JIT) inventory management to cut costs and reduce wastage; worker representatives meet management to discuss poor employee motivation; construction of the outer walls of the new kelp refinery is finished after only 15 months. 2022 - Training for employees for the new kelp refinery starts six months late because of a skills shortage in country W; KK’s Managing Director is interviewed by a local newspaper; KK’s sales of kelp rise by 200%; average lead time for customer orders lengthens from one week to one month. 2023 - The new kelp refinery opens; 50% of KK’s kelp production is now processed in the refinery; the refinery is running at 40% capacity. 2024 - KK begins to import kelp from lower-income countries to be processed in the refinery. Future business strategies: In 2025 a new government was elected in country W with policies designed to improve the economy. KK’s directors are thinking about the probable effect of the government’s policies on KK’s business strategies. Appendix 1 gives a network diagram of the kelp refinery project in 2020 using simultaneous engineering with purchasing, construction and human resource teams. Appendix 2 compares operations before and after JIT was introduced in 2021. Before JIT: kelp harvested each week; harvested kelp put into a large drying facility for five days; dried kelp packed in bags ready to be stored; bags stored in a secure warehouse. After JIT: kelp harvested each day; harvested kelp sent straight to manufacturers with no processing or packaging; costs are much lower because the kelp is unprocessed. Appendix 3 includes an interview with the Managing Director in 2022 saying the refinery is state-of-the-art, employees put forward ideas through an employee suggestion scheme, and the refinery aims for zero waste through recycling and renewable energy. Appendix 4 lists the new government’s policies in 2025: using monetary policy to stabilise inflation; government grants to support carbon-efficient businesses; minimum wage to be increased by 40% by 2028; reform of country W’s education system including government-funded university tuition; removal of trade barriers for businesses in the primary sector.

Oct/Nov 2025