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1 The table below shows the data for two companies which

manufacture printers for use with computers. Both companiesuse flow production techniques.

The directors of Company B are deciding whether or not to introduce new technology into the production process. They have a report from the Operations Director explaining the advantages and disadvantages of doing so.

a What is meant by 'flow production’?

Flow production: the production of very large quantities of identical goods using a continuously moving process. b Calculate the labour productivity for Company A.

8000/25=320 per week C Identify and explain one advantage and one disadvantage of

flow production.

Advantage: More capital intensive than job or batch production, which lowers the labour cost. Disadvantage:Requires very large capital investment in production line technology. d ldentify and explain two possible reasons why the labour

productivity for Company B is lower than that for Company A.

Company A’ s production is more automatic Company B is less motivated e Do you think the directors of Company B should introduce new

technology into the production process? Justify your answer.

Yes，introduce new technology into the production process Increases productivity and reduces costs of production also Improves quality and reduces waste. 2 Nice 'n' Spicy produces ready-made meals using the batch

production method.The company has been asked by a large national supermarket chainto supply it with one of their most popular dishes. It would need

5,000 units per week for the next 12 months and, if the product proves popular, further orders will be placed.

Nice 'n' Spicy would need to invest in a new flow production line for this order.

The Operations Director, Nasreen, realises this new order will increase the raw materials she needs for production. She is thinking about introducing just- in-time inventory management.

a What is meant by ‘inventories'?

Inventories: the stock of raw materials, work-in-progress and finished goods held by a business. b Identify two inputs of the production process.

1.most popular dishes from supermarket 2.ready-made meals c ldentify and explain two advantages to Nice 'n' Spicy of batch production.

Less cost：Since larger numbers are made, unit costs are lower. Less row materials price：Row materials can be bought in bulk, so they are cheaper. d Identify and explain two benefits to Nice 'n' Spicy of justin-time inventory management.

Less waste:They can save unnecessary waste Less cost: Eliminate storing fees e Do you think Nice 'n' Spicy should accept the order from the

supermarket chain? Justify your answer.

Yeah, The supermarket is a large retailer with a large number of potential customers. readymade meal is a food product, which is very suitable for sale in the supermarket. company can cooperate with the supermarket without worrying about sales channels and sales number.