Weebly
Structuring Your AnswersAnalyse one benefit and one problem of using JIT stock management. (9 marks)JIT stock management is a concept that means ordering stock only as and when it is neededA benefit of using this particular method is that it reduces costsThis is because a business won’t have to spend money on storing stock that is not being used. This is because the supplier will have it until it is orderedThis therefore, reduces wastage and could mean a business is able to lower its costs and become more competitive.Analyse two possible economies of scale that might occur in a national newspaper publisher. (9 marks)Economies of scale are when a business benefits from its size, where generally, the bigger the business is, the cheaper unit costs become. There are different types of economies of scale, including technological, purchasing and marketing.Technological economies of scale are when more expensive, modern equipment can improve the efficiency of a business and lower costs.This therefore demonstrates that larger publishers with access to larger funds and therefore more advanced equipment gain an advantage over smaller firms who cannot compete for them on cost grounds because they don’t have equipment that will allow them to lower their unit costsThis allows them to maximise profit or pass these savings onto the customers and become more competitive – and therefore gain more sales.This allows them to maximise profit or pass these savings onto the customers and become more competitive – and therefore gain more sales.Economies of scale are when a business benefits from its size, where generally, the bigger the business is, the cheaper unit costs become. There are different types of economies of scale, including technological, purchasing and marketing.A benefit of using this particular method is that it reduces costsJIT stock management is a concept that means ordering stock only as and when it is neededThis is because a business won’t have to spend money on storing stock that is not being used. This is because the supplier will have it until it is orderedThis therefore demonstrates that larger publishers with access to larger funds and therefore more advanced equipment gain an advantage over smaller firms who cannot compete for them on cost grounds because they don’t have equipment that will allow them to lower their unit costsTechnological economies of scale are when more expensive, modern equipment can improve the efficiency of a business and lower costs.This therefore, reduces wastage and could mean a business is able to lower its costs and become more competitive.Analyse one benefit and one problem of using JIT stock management. (9 marks)A problem of using JIT stock management is:This means that:A problem this could cause to the business is:Analyse two possible economies of scale that might occur in a national newspaper publisher. (9 marks)Purchasing economies of scale are:This means that:The benefit to the business of this is that: ................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.