Photo AI
Which of the following is correct when a business uses just-in-case stock control rather than just-in-time stock control? A - AQA - GCSE Business - Question 3 - 2022 - Paper 1
Question 3
Which of the following is correct when a business uses just-in-case stock control rather than just-in-time stock control? A. Deliveries are more frequent. B. Less w... show full transcript
Worked Solution & Example Answer:Which of the following is correct when a business uses just-in-case stock control rather than just-in-time stock control? A - AQA - GCSE Business - Question 3 - 2022 - Paper 1
Step 1
Identify the correct statement regarding just-in-case stock control
Answer
When a business employs just-in-case stock control, it holds larger inventories to safeguard against unexpected demand or supply chain disruptions. This often leads to more frequent deliveries (Option A). However, the correct statement from the options given is:
C. Stock is less likely to go out of date. This is due to the nature of just-in-case systems that ensure adequate stock levels to meet demand.
Step 2
Using item 2, explain one advantage of being a private limited company when expanding the business.
Answer
An advantage of being a private limited company (Ltd) is that it can raise capital by selling shares to a limited number of investors without the need for extensive public disclosure, which is often required for public companies. This allows for flexible financing options, enabling the business to fund its expansion projects effectively while keeping control within the original ownership group.
Step 3
The business has decided to expand by introducing car phone holders to its product range. Using item 3, explain the opportunity cost of this decision.
Answer
The opportunity cost of introducing car phone holders involves the potential benefits the business could have gained from investing resources elsewhere. For example, if the funds and employee time allocated to this product expansion could have been used to enhance existing products or launch a new technology line instead, those are the lost opportunities directly associated with this decision to expand.
Step 4
Identify one reason for diseconomies of scale occurring.
Answer
One reason for diseconomies of scale is communication breakdown within a larger organization. As firms grow, the complexity increases, leading to potential miscommunications and inefficiencies, which can hinder productivity and increase operational costs.
Step 5
Using the information in Table 2, calculate the average number of phone cases per month processed from April to June.
Answer
To calculate the average number of phone cases produced per month from April to June, sum the total cases produced in those months and divide by the number of months:
Assuming the total production for April is X, May is Y, and June is Z:
Average = ( \frac{X + Y + Z}{3} )
This calculation will provide the average number of cases fabricated during this timeframe.
Step 6
Demand for the new car phone cases is increasing. Analyze the strengths and weaknesses of introducing the new production process.
Answer
The introduction of a new production process for car phone cases has several strengths:
- Increased Efficiency: Modern techniques can streamline production, reducing costs over time.
- Market Demand: Growing demand provides an opportunity for increased sales and revenue.
However, there are weaknesses to consider:
- Initial Costs: The transition may necessitate a significant initial investment in new technology or training.
- Risk of Overproduction: If demand fluctuates, the business might face unsold stock, leading to waste and potential financial losses.
Step 7
Anita wants to increase the productivity of all employees quickly and plans to use two options to achieve this. Analyze the effect of each of these options on all employees of Fone ltd.
Answer
-
Introduce a new production technique: This option can lead to immediate improvements in efficiency and productivity, as it might streamline processes and reduce waste. Employees may undergo training, which can enhance their skill set but may also create initial resistance to change.
-
Change the organizational structure and recruit internally for new assistant managers: Shifting to a more decentralized structure can empower employees and improve decision-making at operational levels. However, it might create uncertainty among staff regarding their roles and responsibilities. Recruiting from within can motivate employees but can also lead to the perception of favoritism if not handled transparently.
Ultimately, both options may lead to enhanced productivity but must be managed carefully to maintain employee morale and engagement.