Improving Flexibility, Speed and Dependability (AQA A-Level Business): Flashcards

Inventory

Stock a business holds (raw materials, WIP, finished goods)

Supply chain

Journey of getting product/service from materials to customer

Flexibility (operational)

How well a business can adapt to customer needs

Mass customisation

Producing tailored goods meeting individual requirements

Speed of response

How quickly a business can fulfil a customer's order

Dependability

Whether a business fulfils orders on time (punctuality)

Two meanings of dependability

1. Punctuality (on time) 2) Reliability/durability

Problems: insufficient supply

Lost sales, damaged reputation, lost future business

Problems: excess supply

Holding costs, tied-up capital, waste risk, lower profit

Benefits of mass customisation

Higher customer satisfaction & competitive advantage