Y1 BUSINESS RECAP - OPERATIONS MANAGING INVENTORY AND SUPPLY CHAIN 1
- Created by: ameliab2001
- Created on: 03-11-21 14:12
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- Managing inventory and supply chains: inventory and objectives
- Inventory = stock held by the business
- materials and supplies needed for production
- semi finished items
- finished products ready for distribution or sale
- speed of response
- how fast the product/ service is delivered. e.g. how long the AA take arriving to a breakdown.
- can be a way of being more competitive
- save time through simultaneous jobs etc.
- how fast the product/ service is delivered. e.g. how long the AA take arriving to a breakdown.
- dependability
- the time it takes for the product to go from production to finishing/sale
- more important in some industries, compared to others. may involve new processes, investment or training
- the time it takes for the product to go from production to finishing/sale
- flexibility
- e.g. made to order food in Subway/ personalised trainers on Nike
- BMW claim no two minis are the same = individual needs of customers met
- e.g. made to order food in Subway/ personalised trainers on Nike
- influences on amount of inventory
- holding inventory uses resources. managers on a warehouse may need to space/ measures to prevent theft and damage.
- opportunity cost = money invested in producing products that could of been used for something else.
- e.g. £000s of thousands invested in car show rooms > managers want fast turnover
- May go out of date and become worthless if held for too long.
- Measuring inventory
- managers want to measure how much of an item is held at anytime
- technology has made this more efficient
- ensures enough inventory is held so sales and production can continue - but costly if too much is inventory held
- managers want to measure how much of an item is held at anytime
- mass customisation
- can be expensive and make processes difficult for business like car manufacturers
- delivering goods/services modified to the customers needs. personalisation + flexibility
- Inventory = stock held by the business
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