Veerva Motors Ltd manufactures electric scooters in Thailand. The company has to have a strong approach to supply chain management, as it sources components from suppliers across Asia.
Define the term 'supply chain management'.
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Precision Parts India Ltd manufactures automotive components in Chennai. The company tracks inventory movement using detailed stock control charts to identify the reorder level and manage buffer stock levels effectively.
Define the term 'reorder level'.
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Nordic Pharmaceuticals produces medical supplies in Oslo, Norway. The company implemented new stock control measures in 2024 to prevent stockouts.
State two consequences of poor stock control.
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Brazilian Wood Products Ltd manufactures furniture components in São Paulo. The company monitors its inventory levels using computerised stock control charts.
State two elements shown on a stock control chart.
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Regensburg Spielzeuge manufactures traditional toys. The factory had a relatively low capacity utilisation in 2024, operating at 65% of its maximum output capacity.
Define the term 'capacity utilisation'.
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Malaglazia produces industrial glass in Spain. The company faces increasing pressure to reduce waste in 2024, including halving its defect rate.
State two consequences of a high defect rate.
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Blatt Maschinen GmbH manufactures industrial equipment in Hamburg. The company invested in automated systems in 2024 to improve capital productivity.
Define the term 'capital productivity'.
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New Zealand Dairy Ltd produces dairy products in Auckland. The company is considering outsourcing packaging in 2024 but must first weigh up a range of quantitative and qualitative factors.
State two quantitative factors in make or buy decisions.
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GreenTech, a solar panel manufacturer, relies on global supply chains to source rare materials like silicon. It aims to maintain strong supplier relationships.
Explain one reason why GreenTech focuses on strong supplier relationships.
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BrightClean manufactures and supplies cleaning products to industrial clients. The company recently adopted a just-in-time (JIT) stock management system to improve efficiency and reduce costs.
However, this has created challenges. BrightClean relies heavily on punctual deliveries from suppliers to meet client orders, and any delays disrupt production. Despite these risks, JIT has reduced stockholding costs significantly and improved cash flow. The company is considering switching back to a just-in-case (JIC) system to mitigate risks.
Explain one advantage and one disadvantage of BrightClean’s adoption of a just-in-time stock management system.
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BrightClean manufactures and supplies cleaning products to industrial clients. The company recently adopted a just-in-time (JIT) stock management system to improve efficiency and reduce costs.
However, this has created challenges. BrightClean relies heavily on punctual deliveries from suppliers to meet client orders, and any delays disrupt production. Despite these risks, JIT has reduced stockholding costs significantly and improved cash flow. The company is considering switching back to a just-in-case (JIC) system to mitigate risks.
Describe two factors BrightClean should consider when deciding between just-in-time and just-in-case stock management systems.
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GreenField Agriculture grows organic vegetables and distributes them to supermarkets. The company has been struggling with under-utilised capacity at its processing facility, which has led to increased unit costs.
GreenField is considering increasing production to optimise its capacity utilisation but is concerned about the risks of overproduction, including potential waste and storage issues. The company also aims to ensure that it can respond to sudden increases in demand without straining resources.
Analyse two advantages and one disadvantage to GreenField Agriculture of increasing production to improve capacity utilisation.
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GreenField Agriculture grows organic vegetables and distributes them to supermarkets. The company has been struggling with under-utilised capacity at its processing facility, which has led to increased unit costs.
GreenField is considering increasing production to optimise its capacity utilisation but is concerned about the risks of overproduction, including potential waste and storage issues. The company also aims to ensure that it can respond to sudden increases in demand without straining resources.
Describe two strategies GreenField could use to improve capacity utilisation.
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SwiftSnacks operates a network of vending machines that sell healthy snacks and beverages in office buildings and schools. The company has grown rapidly, but inconsistent supply chain management has led to stockouts in some vending machines and overstocking in others, causing waste and reduced customer satisfaction.
To address this, SwiftSnacks is evaluating its supply chain processes, including the use of automated stock control systems to optimise replenishment schedules. Additionally, the company is considering outsourcing the stocking of its vending machines to a third-party logistics provider. SwiftSnacks must balance the benefits of outsourcing with the need to maintain control over product quality and brand reputation.
Explain one advantage and one disadvantage of SwiftSnacks outsourcing the stocking of its vending machines.
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SwiftSnacks operates a network of vending machines that sell healthy snacks and beverages in office buildings and schools. The company has grown rapidly, but inconsistent supply chain management has led to stockouts in some vending machines and overstocking in others, causing waste and reduced customer satisfaction.
To address this, SwiftSnacks is evaluating its supply chain processes, including the use of automated stock control systems to optimise replenishment schedules. Additionally, the company is considering outsourcing the stocking of its vending machines to a third-party logistics provider. SwiftSnacks must balance the benefits of outsourcing with the need to maintain control over product quality and brand reputation.
Analyse two benefits and one drawback of SwiftSnacks implementing an automated stock control system.
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