1) What are credit terms? a) It is when you are given money as a grant. To spend as the business wishes. b) It is money (materials) loaned to a business for usually 28 days, which then needs to be repaid. For example, Screwfix. 2) What are the factors to consider when choosing a supplier? a) Logo, Name, Look, Customer Service, Business benefits b) Price, Quality, location, lead time, reliability, reputation, discounts, credit terms 3) Name a cost/risk of OVERSTOCKING a) Warehousing security b) Production halt 4) Name a cost/risk of UNDERSTOCKING a) Customer dissatisfaction b) Obsolescence 5) Name a cost/risk of OVERSTOCKING a) Loss of reputation b) Cash-flow problems 6) Name a risk/cost of UNDERSTOCKING a) Loss of discounts b) Theft 7) When we manage stock levels in a Business it is called? a) Stock control b) Inventory Control 8) What is this method of production? A continuous production line of one product, largely manufactured using machinery (capital)? a) Job b) Batch c) Flow d) Manpower 9) What is this method of production? When a set of identical products are made as a wider series of different products. a) Job b) Batch c) Flow 10) What is the method of production? When a one-off job is completed which is unique and specialist. a) Job b) Batch c) Flow 11) What is the most EXPENSIVE form of quality inspection? a) Quality assurance b) Quality control c) Benchmarking d) Quality circles

Operations Revision - NAT 5

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