P6 Unit 9 Business

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TASK 1 – Part I, II, III (1,2,3,) Location Research and Development Methods of Production Part 1 Hunters Of Derby Justification: I have picked this type of organisation, as I see it reasonable, for resource requirements. The Location is being held at the main city centre, while the business is being local and only operating in Derby. It’s Derby’s proudest and longest established furnishing store, which offers a huge range of resources of furnishings, floorcoverings and accessories for home. Main resources styles are traditional, whether the resources are being needed for living, dining or sleeping, the business is able to pick their range with quality, great looks and practicality in mind. I have picked the business in order to…show more content…
The reorder quantity is the amount that furnishing companies buy from the suppliers, when getting an order. (a measurement, from 0 to 500) Maximum stock level – illustrates if the company has too many resources delivered from suppliers, which can incur as heavy additional costs, and it’s a GREEN line at the top. Lead Time – is what’s between an order placement and stock arrival. Stock is different in reality though; normally there would be different rates than in diagram, so it can be only used as example of how Furnishing business or Hunters of Derby may manage their business… Normally company is not so perfect, and could have problems with stock reorder, where furnishing elements are not being made on time, or there is problem with time leading, or transport, so in reality it is difficult to describe it in one diagram. Business may also consider the price of stock, and the amount of resources in compartment with both, which has to be calculated in order to be more precise. This is described as EOQ formula which calculate the economic order quantity, and by using formula…show more content…
The resources are produced “just in time” and all materials come to the store just in time, when they are needed for consumer satisfaction. There is a graph that illustrates features of just in time production. This clearly show, that Hunters of Derby doesn’t have need to hold buffer stock, materials or finished goods. There is no need to use warehouses in this method, as resources and raw materials that are produced, goes straight to delivery. This is not only about management, but more sort of a way to eliminate costs, that are not essential for production process. Most businesses that manufacture their product spend most time on inspecting quality and repairing faulty products, which aims to eliminate errors from manufacturing process, in this simple method. Greatest benefit of JIT is that business reduces operating cost, and therefore has advantage over its competitors. There is also a benefit of reducing manufacturing times and shortening delivery

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