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2.4 - Coggle Diagram
2.4
Stock control
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Implications of poor stock control: 1) increased costs - result on excess stock - increase cost 2) unable to meet demand - loss of customers, damage reputation 3) cash flow problems - money tied up in stock = business can't meet current liabilities.
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Quality control
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Competitive advantage of quality management - gain competitive advantage, increase demand, loyal customers, repeat sales
Capacity utilisation
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How to increase:
1) increase workforce hours
2) outsource some of production- increase current output
3) reduce machine maintenance
How to improve:
1) Competitors exiting market
2) balancing seasonal demand -
3) improve marketing - increase demand
Implications of underutilisation:
1) inefficiency - low economies of sale
2) flexibility - not producing full capacity, able to stock up
3) loss of market share
Implications of over utilisation:
1)maintenance: not enough time for maintenance
2) inflexibility: no room to increase stock
3) cost - pay staff overtime
Job production
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Disadvantages:
1) production costs likely to be high
2) time may be longer
3) machinery may be expensive
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