Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
SWB operates in the secondary sector. Each week it makes 150 000 wooden bookcases by using batch production. It sells all of its output to one customer. Quality control is important. SWB employs 240 workers, and 100 of them are part-time. To cut communication barriers, SWB’s managers use noticeboards placed around the factory and hold meetings with employees every month. The Operations Manager is thinking about bringing in just-in-time inventory control to cut the amount of waste.
(a)[2]
Define what is meant by ‘secondary sector’.
(b)[2]
Identify two factors a business should take into account when deciding whether to adopt just-in-time inventory control.
(c)[4]
Outline one benefit and one drawback to SWB of using quality control.
(d)[6]
Explain two communication barriers that could exist at SWB.
(e)[6]
Do you think it is a good idea for a business to rely on only one customer? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Businesses that process and manufacture goods from natural resources” …