Exam code: 7132
Syllabus Edition
First teaching 2023
Last exams 2027
Statement 1: ‘Value added can be increased by creating barriers to entry.’
Statement 2: ‘Value added can be increased by lowering unit costs.’
Read statements 1 and 2 and select the correct option from the following:
Statement 1 is true. Statement 2 is true.
Statement 1 is true. Statement 2 is false.
Statement 1 is false. Statement 2 is true.
Statement 1 is false. Statement 2 is false.
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Which of the following actions would improve the ability of a manufacturer to respond to changes in consumer demand?
Ensuring workers are highly trained in one specialised role
Maintaining high capacity utilisation levels
Outsourcing more production to other manufacturers
Reducing warehouse size in order to minimise levels of inventory
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Statement 1: ‘A business might improve the quality of its product in order to make its demand more price elastic.’
Statement 2: ‘A business might improve the quality of its product in order to increase added value.’
Read Statements 1 and 2 and select the correct option from the following options.
Statement 1 is true. Statement 2 is true.
Statement 1 is true. Statement 2 is false.
Statement 1 is false. Statement 2 is true.
Statement 1 is false. Statement 2 is false.
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Barrowfield Furniture has repeatedly run out of timber partway through production runs, halting its assembly line.
Explain one way better operations management could address this problem at Barrowfield Furniture.
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Selby Online has advertised a next-day delivery guarantee on all orders placed before 8pm.
Explain one way this marketing promise is likely to affect operations at Selby Online.
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Winsley Ceramics has set its operations team a target of reducing unit costs by 12% within a year. It has set no other operational objective.
Explain the risks to Winsley Ceramics of setting a single operational objective focused only on cost.
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Ashcott Electronics currently runs its factory at 68% capacity utilisation. Its operations director has proposed raising this to 90% as a way of reducing unit costs.
Analyse how raising capacity utilisation would affect Ashcott Electronics.
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Table 1 shows operational data for Thurloe Components.
Calculate:
the percentage reduction in Thurloe Components' average order lead time between 2025 and 2026
the percentage of orders delivered on time in 2026.
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Read the case study in the Insert (opens in a new tab).
Analyse why Logger Boards Ltd prioritises meeting environmental objectives when making operational decisions.
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A business plans to improve its flexibility through mass customisation. Is it inevitable that improved flexibility will worsen other measures of its operational performance?
Justify your view.
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