Cost of raw materials - The price charged by a supplier to purchase raw materials, Quality of raw materials - How good the raw materials are, Delivery time - How long it will take to receive the raw materials from when an order is placed, Quantity of raw materials - How much raw materials are required, Location of supplier - Where the supplier is located, Storage space available - How much space the business has in a warehouse to hold the raw materials until they are needed, Reliability of the supplier - Will the supplier deliver when they say they will?, Reputation of the supplier - What people think of the supplier, Job production - Individual products are made one at a time to meet specific customer needs., Advantage of job production - Can customise products, Disadvantage of job production - Investment in machinery may be higher as specialist equipment may be needed, Batch production - Where one group of identical products is made at the same time, before moving onto producing the next group., Advantage of batch production - Allows flexible production, Disadvantage of batch production - If production runs are different there may be additional costs and delays in preparing equipment, Flow production - Where identical, standardised products are produced on an assembly line., Advantage of flow production - Economies of scale can be achieved as cost per unit will be low, Disadvantage of flow production - High initial set-up costs of automated assembly lines, Assembly Line - A series of workers and machines in a factory by which a succession of similar items is progressively assembled., Capital intensive - Products are made mainly using machines and equipment, Labour intensive - Products are made using mainly human effort, Automation - When products are made using only machines, Mechanisation - When products are made using a combination of humans and machines, High Quality Raw Materials - Ensuring the basic materials that are used to produce a good are of a high standard, Quality Control - Inspecting products at the end of production to ensure they meet the required quality standard., Quality Assurance - Checking goods and services at different stages of production to ensure they meet the required standard., High Quality Staff Training - This is when all employees are fully trained to perform their job to the standard required by the organisation., Maximum stock level - The highest amount of stock that can be stored at one time, Minimum stock level - The lowest amount of stock that should be stored at one time, Re-order level - The quantity at which more stock is ordered, Re-order quantity - The quantity of stock that has to be ordered to bring levels back to the maximum stock level,
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