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2 marksInventory Management

CAPE Management of Business Unit 2 · 2021 · Paper 2 · Question 1(a)(i)

WFM is a small business producing CDs, DVDs, and external hard drives with a design capacity of 11,000 units. Up to December 2018, daily output reached 6,500 units on a single shift. In 2019, shifts doubled and output reached 11,000 units, but monthly operating costs tripled between January and April 2020.

Outline ONE feature of the 'just-in-time inventory management' approach.

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Other parts of this question

  1. 1(a)(ii)Calculate the capacity utilization for WFM during the year 2018.[2 marks]
  2. 1(b)(i)Explain how WFM can adopt quality assurance to develop the quality of their products.[3 marks]
  3. 1(b)(ii)Explain how WFM can adopt quality control to develop the quality of their products.[3 marks]
  4. 1(b)(iii)Explain how WFM can adopt total quality management to develop the quality of their products.[3 marks]
  5. 1(c)Discuss THREE ways in which outsourcing may be disadvantageous to WFM.[12 marks]

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