Business 7115 · O Level · Production of goods and services
Production of goods and services — practice question
SWB operates in the secondary sector. It makes 150 wooden bookcases each week through batch production. All of its output is sold to a single customer. Quality control matters. SWB employs 240 workers, and 100 of them work part-time. To cut communication barriers, SWBs managers rely on noticeboards placed around the factory and monthly meetings with employees. The Operations Manager is thinking about adopting just-in-time inventory control to cut the amount of waste.
(a)[2]
Define ‘secondary sector’
(b)[2]
Identify two factors a business needs to consider before deciding to introduce just-in-time inventory control.
Factor 1:
Factor 2:
(c)[4]
Outline one advantage and one disadvantage that SWB could get from using quality control.
Advantage:
Disadvantage:
(d)[6]
Explain two communication barriers that could arise at SWB.
Communication barrier 1:
Explanation:
Communication barrier 2:
Explanation:
(e)[6]
Do you think it is a sensible idea for a business to depend 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” …