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Eshan’s Breads is a large manufacturing business in Melbourne - VCE - SSCE Business Management - Question 4 - 2023 - Paper 1
Question 4
Eshan’s Breads is a large manufacturing business in Melbourne. It supplies bread to supermarkets, restaurants and catering businesses. The three key elements of an ... show full transcript
Worked Solution & Example Answer:Eshan’s Breads is a large manufacturing business in Melbourne - VCE - SSCE Business Management - Question 4 - 2023 - Paper 1
Step 1
Describe one way in which Eshan’s Breads could use a materials management strategy to improve the efficient management of its inputs.
Answer
One effective materials management strategy that Eshan’s Breads could implement is Just-In-Time (JIT) inventory management. JIT focuses on minimizing inventory levels while ensuring that materials arrive just as they are needed in the production process.
By adopting this strategy, Eshan’s Breads can reduce the costs associated with storing excess raw materials and decrease waste from perishable items. This approach allows the business to respond quickly to customer demand and prevent overproduction, ultimately leading to better resource allocation. Additionally, implementing strong relationships with suppliers can enhance the JIT process, ensuring timely and accurate deliveries.
Step 2
Analyse the relationship between key performance indicators and management strategies during the change to an environmentally sustainable airline.
Answer
The relationship between key performance indicators (KPIs) and management strategies is crucial during the transition to an environmentally sustainable airline. KPIs such as fuel efficiency, carbon emissions, and customer satisfaction metrics must be monitored closely to evaluate the effectiveness of sustainability initiatives.
As the airline shifts to greener practices, management can utilize KPIs to inform their strategies. For instance, if the KPI for fuel efficiency indicates worsening performance, this may signal the need for the implementation of newer, more efficient aircraft or in-flight operational changes.
Moreover, tracking customer satisfaction regarding eco-friendly initiatives can guide management in refining their strategies to align better with consumer expectations. By continually analyzing KPIs, the airline can adapt its approach and ensure that sustainability efforts are both financially viable and positively received by customers, thus facilitating a successful transition.