Logistics

Question 1

what logistical management?

Answer 1

How the product is transported and distributed from the manufacturing site to the customer/store.

Question 2

what are the methods of distribution?

Answer 2

• road
• rail
• air
• sea

Question 3

what are the advantages of road distribution?

Answer 3

• relatively low costs
• arrives straight to destination
• can be refrigerated
• quick and convenient

Question 4

what are the disadvantages of road distribution?

Answer 4

• Road work delays
• Weather delays
• Not suitable for larger products

Question 5

what are the advantages of rail distribution?

Answer 5

• no issue of traffic builds up
• faster than road
• more environmentally friendly
• convenient for bulkier products

Question 6

what are the disadvantages of rail distribution?

Answer 6

• no direct

- weather can have an impact

Question 7

what are the advantages of air distribution?

Answer 7

• faster methods for long distance

- useful for remote area

Question 8

what are the disadvantages of air distribution?

Answer 8

• very expensive
• still require road transport to complete the delivery
• not environmentally friendly

Question 9

what are the advantages of sea distribution?

Answer 9

• best for international trade

- allows huge amounts to be transported

Question 10

what are the disadvantages of sea distribution?

Answer 10

• slowest method

- no use for perishable items

Question 11

what is distribution and logistics concerned with?

Answer 11

This is concerned with getting the finished goods to the right customer safety on time.

Question 12

what are the types of ways a business can transport gods to customers?

Answer 12

Some organisations may choose to transport goods themselves other may employ as courier (DPD, Hermes. Yodel)

Question 13

when deciding how to transport goods to customer they need to consider?

Answer 13

• Cost of delivery/weight of product.
• Type of product e.g. frozen food – chilled vans
• Legal restrictions i.e. tobacco, alcohol – delivery must be licensed.
• Finance available – next day delivery, first class
• Reliability of courier

Question 14

what are the two methods by which manufacturers produces goods?

Answer 14

• labour intensive

- capital intensive

Question 15

what was is capital intensive?

Answer 15

This is where the production process relies more on machinery and equipment instead of human input.

Question 16

when is capital intensive suitable?

Answer 16

Suitable where the cost of machinery is more cost effective compared to labour (machinery cheaper than wages)

Question 17

when is capital intensive used?

Answer 17

Also used where the process is repetitive and requires precise, consistent output

Question 18

what are the advantages to capital intensive?

Answer 18

• Can work 24/7
• Standardized quality
• Fewer employees (wages)
• less skilled workforce required

Question 19

what are the disadvantages to capital intensive?

Answer 19

• machinery/equipment is expensive initially
• breakdowns can be excessive and cause production to stop
• customisation difficult

Question 20

what is labour intensive?

Answer 20

This is where a business uses a larger proportion of human input than machinery in the production process.

Question 21

what is labour intensive suitable?

Answer 21

Suitable where he production process requires flexibility and customisability.

Question 22

what are the advantages of labour intensive?

Answer 22

• for creative industries
• labour is readily available (training required)
• no expensive equipment
• unique products

Question 23

what are the disadvantages of labour intensive?

Answer 23

• Expensive and time consuming to recruit, select and train
• Training takes time
• Quality can vary (mistakes)

Question 24

capital intensive, what is batch production?

Answer 24

• Groups of identical products being made at one time.
• Different ingredients used for different groups – each batch will differ in flavour, colour etc
• One group is made then machines are cleaned, and another batch of flavour is made.

Question 25

capital intensive, what is flow production?

Answer 25

- Involves identical products being made along a production line. - Products being produced flows through various stages with parts being added at each stage (each stage adds value) - Continuous output of identical products. - Tends to be mainly capital intensive. - Mass production with use of machinery (automation

Question 26

what can capital intensive production be?

Answer 26

Capital Intensive production can be either automation or mechanisation.

Question 27

what is automation?

Answer 27

Refers to the product being fully automated. This uses CAM (computer aided Manufacture) to control fully automated assembly lines.

Question 28

what are the advantages of automation?

Answer 28

- Production time is quicker and can be repeated constantly without errors. - Accuracy is far greater because there is no human error. - There is no requirement for workers to man the machinery, so this saves money. - The work environment is safer as employees will not be in automated work areas while production takes place.

Question 29

what are the disadvantages of automation?

Answer 29

- There is no flexibility as the machinery can only do what it is programmed to do. - More machinery to complete production means more pollution and, in some cases, environmentally unfriendly fumes. - It causes unemployment to increase, which has an economic impact on a country. - Machinery breaks down are expensive.

Question 30

what is mechanisation?

Answer 30

Refers to labour and machines working together on the production of a product.

Question 31

what are the advantages of mechanisation?

Answer 31

- Standardisation can be pre-programmed, allowing production to be consistent. - Machinery improves the accuracy of work and complete difficult tasks for the worker. - Using labour allows for production issues to be flagged up quickly. - Labour can be trained in becoming an expert at operating machinery.

Question 32

what are the disadvantages of mechanisation?

Answer 32

- Initial set-up costs are high. - Machinery could break down and idle time is a negative factor. - Machinery needs to be updated and upgraded often which can be expensive - Labour needs to be trained, which is expensive. They will probably also require training whenever machinery is guarded.

Question 33

labour intensive - what is job production?

Answer 33

- Company produces a single product or small number of products to specific requirements. - May be a one-off job (unique) to suit a customer’s particular requirement. - Emphasis on ‘tailor made’ design. - One job is finished before another is started.

Question 34

what factors should be considered when choosing a method of production?

Answer 34

- The skills of the workforce - The finance available to the organisation - The technology available to support the organisation - The size of the business - The nature of the product being made - The demand for the product – the number to be produced - The standard of quality required