Edexcel GCSE (9-1) Business (1BS0) · Spec 2.3.1, 2.3.2, 2.3.3 and 2.3.4
Making operational decisions
Read the notes, then try the questions. Each one is marked the moment you press Check, and shows the right answer and why.
Key ideas
- Job production makes one-off items. Batch production makes groups of identical items. Flow production makes standard items continuously.
- Procurement is sourcing and buying what the business needs. Suppliers are chosen for reliability, quality, price and delivery.
- Just-in-time (JIT) means materials arrive only when needed, which cuts stock costs but depends on reliable deliveries. A bar gate stock graph shows the maximum level, the buffer stock, the re-order level and the lead time.
- Quality control inspects products. Quality assurance builds checks into every stage. Poor quality can mean refunds, recalls and a damaged reputation.
- Customer service includes after-sales help such as a helpline for faulty products.
Key terms
- Job production
- Making a single, made-to-order product.
- Batch production
- Making a set number of identical items before switching to something else.
- Flow production
- Making standard products continuously on a production line.
- Procurement
- Finding and buying the materials and services a business needs.
- Just-in-time (JIT)
- Ordering materials so that they arrive only when they are needed.
- Buffer stock
- The minimum stock held to guard against late deliveries or high demand.
Common mistakes
- Mixing up job and batch production. One-off means job; a run of identical items means batch.
- Treating quality control and quality assurance as the same. Control checks; assurance builds quality in.
- Reading a bar gate graph without subtracting the buffer stock when working out the order size.
Exam tip
'Explain one way' means a way, not a benefit. Name the method, then develop it with a link to the business. Answering with a benefit is a common reason for lost marks.
Free practice questions
8 questions, 13 marks. Answer, then press Check. The marking guide explains how the marks are worked out. Nothing is saved.
- Question 1 · Matching[3 marks]
Match each product to its most likely production process.
- Question 2 · Multiple choice[1 mark]
Which production process involves standardised products moving continuously along an assembly line?
- Question 3 · Multiple choice[1 mark]
Which stock management approach involves ordering materials to arrive only when they are needed for production?
- Question 4 · Multiple choice[1 mark]
What is meant by 'procurement' in business operations?
- Question 5 · Multiple choice[1 mark]
A business that needs materials delivered reliably every single day would prioritise which factor most when choosing a supplier?
- Question 6 · Multiple choice[1 mark]
Which of the following is an example of after-sales customer service?
- Question 7 · Matching[3 marks]
Match each quality term to its correct description.
- Question 8 · Choose more than one[2 marks]
Which TWO of the following are shown on a bar gate stock graph?
Choose 2.