Write True or False after each of the following statements. 1. Electronic Data Interchange (EDI) involves a business exchanging its customer's data with other businesses. 2. Just in Time (JIT) Production allows manufacturing businesses to reduce costs by keeping stock of raw materials to a minimum. 3. Lead Time is the amount of time it takes a supplier to fulfil an order. 4. Economies of scale increase costs when a business buys large quantities of raw materials in bulk at a discount. 5. Optimum stock level is the ideal amount of stock a business should have at any given time.

Leaving Cert Business Management Activities: Write True or False after each o

Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020

Question 7

Write True or False after each of the following statements. 1. Electronic Data Interchange (EDI) involves a business exchanging its customer's data with other busin... show full transcript

Worked Solution & Example Answer:Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020

Step 1

1. Electronic Data Interchange (EDI) involves a business exchanging its customer's data with other businesses.

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Answer

False. EDI is primarily about exchanging structured data and documents electronically rather than personal or sensitive customer data.

Step 2

2. Just in Time (JIT) Production allows manufacturing businesses to reduce costs by keeping stock of raw materials to a minimum.

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Answer

True. JIT production minimizes inventory costs, allowing businesses to reduce overhead by only maintaining necessary stock levels.

Step 3

3. Lead Time is the amount of time it takes a supplier to fulfil an order.

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Answer

True. Lead time specifically refers to the duration from order placement to the receipt of the goods.

Step 4

4. Economies of scale increase costs when a business buys large quantities of raw materials in bulk at a discount.

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Answer

False or True. While economies of scale typically lower costs due to bulk purchasing, they may increase costs if not managed properly or if larger quantities lead to excess inventory.

Step 5

5. Optimum stock level is the ideal amount of stock a business should have at any given time.

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Answer

True. The optimum stock level is calculated to balance between supply needs and storage costs effectively.

Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020

Worked Solution & Example Answer:Write True or False after each of the following statements - Leaving Cert Business - Question 7 - 2020

1. Electronic Data Interchange (EDI) involves a business exchanging its customer's data with other businesses.

2. Just in Time (JIT) Production allows manufacturing businesses to reduce costs by keeping stock of raw materials to a minimum.

3. Lead Time is the amount of time it takes a supplier to fulfil an order.

4. Economies of scale increase costs when a business buys large quantities of raw materials in bulk at a discount.

5. Optimum stock level is the ideal amount of stock a business should have at any given time.

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