Oakford Meals Ltd supplies chilled meals to local shops. It must choose between flexible team production and a specialised production line. Table 1 shows estimates for each method.
| Measure | Flexible teams | Specialised production line |
|---|---|---|
| Workers employed | 36 | 28 |
| Meals per worker per day | 48 | 74 |
| Average production cost per meal | £3.10 | £2.35 |
| Estimated annual staff turnover | 9% | 24% |
| Ability to change recipes | High | Low |
[ITEM A] A supermarket has offered a three-year contract for 2,000 meals each day. Managers propose job rotation and extra quality checks so that specialised workers do not repeat the same task throughout every shift.
[ITEM B] Most existing customers are independent shops that value frequent recipe changes. Workers prefer the flexible teams, and the supermarket may switch suppliers after the contract ends.
Define the term 'specialisation'.
Using Table 1, calculate the increase in Oakford Meals Ltd's daily output if it introduces the production line.
Explain two possible benefits to Oakford Meals Ltd of introducing the production line.
Using Table 1, analyse the likely effects of the production line on Oakford Meals Ltd's workers.
Do you think Oakford Meals Ltd should introduce the specialised production line? Use Items A and B and your own economic knowledge to justify your view.
84 exam-style questions on AQA GCSE Economics 1.2 Resource allocation, covering 1.2.1a Markets, 1.2.1b Allocation of resources, 1.2.1c Factor and product markets, 1.2.2a Primary, secondary and tertiary sectors, 1.2.2b Goods and services, 1.2.3a Specialisation and the division of labour, 1.2.3b How and why producers specialise, and 1.2.3c Costs and benefits of the division of labour. Each one has a worked solution and a mark scheme showing where the marks go.