F296 Revision - Production 

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  • F296 Revision - Production - Sheet 1
    • Stock Control
      • Reorder Level Stock
        • Can help to cope with fluctuations in demand
        • Satisfies demand
        • Buffer stock can be used as back up
        • Saves costs of over buying and waste of products
        • Opportunity costs - JIT
        • Waste
        • Depreciation of goods/assets - wont be able to sell them and make much money
        • Storage costs - rise when large amount of stock are held
      • JIT (Just In Time) Stock
        • Lower storage costs - no opportunity costs and cost can be used for more products
        • Less capital tied to stock
        • Less waste - stock wont become perishable/out of date
        • Less chance on panicking about quality of the product
        • Little mistakes can be made with ordering and delivery - if delivery missed no products to sell
        • Risky type of stock control
    • Break Even Output
      • BEO
        • Can be used to check for profit target
        • W/o profit at different output levels
        • Can see what changes need to be made
        • Gives clues how to get a lower BEP
        • Impossible to w/o how much each customer/business sells/buys on average
        • Different VCs per customer
        • Assumes FCs dont change
      • FORMULA = fixed costs/contribution where contribution = price - vc
    • Laws for Food Labeling  and Ethics
      • 1) Not having the correct composition of a legal name
      • 2) Incorrect authoritative decleration
      • 3) Expanding a food
      • 4) Failure to describe a process or treatment
      • 5) Substitution of cheaper ingredients
      • 6) Incorrect geographical origin
      • Better brand image
      • Higher wages for employees
      • Can apply to most stakeholders
      • Incentives
    • Costs
      • Standard Costing
        • Able to work out variance
        • Indicates if any changes need to be made
        • Be able to set targets and lower costs
        • Quality may reduce
        • Cost will change due to inflation/sales
      • Absorption Costing
        • Choose what suits your business
        • Share out costs between units
        • Can change costings for different products
        • Can work out prices more easily
        • Ruins profitability
        • Time consuming and diificult to work out
      • Full Costing
        • Easy to work out a price for a product/service
        • FORMULA = All Costs / Units
        • Easy to see how much profit can be made and allow the business to increase costs
        • Ignores competitors and there pricing
        • Ignors price elasticity and how price can suddenly drop
        • Only works on one singular product not for a whole business
      • Contribution / Marginal Costing
        • Easier to get control over pirces
        • Best method to get all the profit back to the business for a little cost
        • Eliminates variable costs
        • Increases overall costs as this method has to be implemented and staff have to be trained highly to do this
        • Doesnt take into account semi-variable costs
        • Only applies to short term users and cannot be used for long term operations
    • New Technology
      • Robotics
        • Greater accuracy when repetition is needed
        • Recudes human error and boredom
        • Increases efficiency and flexibility
        • No employee wages
        • Down time if robotics break and reduces productivity
        • Expesnive to implement
      • CAD (Computer Aided Design)
        • Changes can be made cheaply and easily
        • Easily be tested for faults so prevents problems
        • Increases quality
        • Initial costs are high
        • Training costs to be able to work the machines
      • CAM (Computer Aided Manufacturer)
        • Produces exactly what is designed - ensures quality
        • Reduces human error
        • Initial high costs
        • Faster Method
        • Staff need to be trained, increasing training costs
      • Stock Control Software - EPOS
        • Automatic reordering when stock is low
        • Easier to control and more efficient
        • JIT increases cash flow
        • Able to hold less tock and reduce tstoage costs
        • Expensive to maintain and buy
        • Staf may forget about incoming stock
    • Waste and Disposal
      • Disposal
      • Energy Recovery
      • Recycling
      • Reuse
      • Minimisation
      • Prevention
  • Waste and Disposal
    • Disposal
    • Energy Recovery
    • Recycling
    • Reuse
    • Minimisation
    • Prevention

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