Supply and Demand (AQA A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
Inventory definition
Inventory definition
All stock a business holds (raw materials, WIP, finished goods)
Supply chain stages
Supply chain stages
Materials to manufacturer → manufacturing → distribution
Mass customisation meaning
Mass customisation meaning
Tailoring products to individuals whilst producing at scale
Speed of response meaning
Speed of response meaning
How quickly a business can fulfil an order once placed
Dependability in operations
Dependability in operations
Whether business fulfils orders on time as promised
Too much supply consequence
Too much supply consequence
Increased costs, money tied up, forced price cuts, lower profit
Outsourcing definition
Outsourcing definition
Contracting another business to produce goods for you
Just-in-Time (JIT) system
Just-in-Time (JIT) system
Minimises inventory by ordering materials exactly when needed
Perishable goods inventory
Perishable goods inventory
Unwise to hold large stocks due to short shelf life & waste
Opportunity cost of inventory
Opportunity cost of inventory
Money in stock could be better used elsewhere in business