Business operations

Which type of production makes one-off products to a customer's specification?

What is meant by 'just in time' (JIT) stock control?

Define 'economies of scale'.

A business produces 2,000 units at a total cost of £9,000. Calculate the average unit cost. Show your working.

Case study (fictional business written for this paper): Bramble & Bean Ltd roasts speciality coffee in Leeds and sells to cafés and online. It employs 14 staff and uses batch production, roasting one origin at a time. In 2025 it sold 48,000 bags at £6 each. Variable costs were £2.50 per bag and fixed costs were £120,000. Its beans come from four farms in Colombia and Ethiopia; the managing director, Aisha Rahman, is considering using a single importer to cut costs. A fully automated roaster would cost £85,000 and could double capacity, but staff fear job losses. Define 'batch production'.

Explain one way Bramble & Bean could improve customer service for its café customers.

Analyse the impact on Bramble & Bean of using a single importer for its coffee beans.

Evaluate whether Bramble & Bean should buy the automated roaster.