GlowForge makes scented candles. It currently uses job production for personalised gift candles and produces 900 candles a month. Demand from retailers could reach 3,000 candles a month, but retailers require only six standard scents.
Option 1: Continue using job production and recruit four skilled candle makers at an annual cost of £112,000
Option 2: Introduce batch production using equipment costing £76,000
Justify which one of these two production options GlowForge should choose.
38 exam-style questions on Edexcel GCSE Business 2.3 Making operational decisions, covering 2.3.1a The purpose of business operations, 2.3.1b Production processes, 2.3.1c Impacts of technology on production, 2.3.2a Managing stock: bar gate stock graphs, 2.3.2b Managing stock: just in time (JIT), 2.3.2c Relationships with suppliers, 2.3.2d Impact of logistics and supply decisions, 2.3.3a Quality control and quality assurance, 2.3.3b Quality, costs and competitive advantage, 2.3.4a The sales process, and 2.3.4b The importance of good customer service. Each one has a worked solution and a mark scheme showing where the marks go.