Business (AS & A Level) · May / June 2021 · Paper 23 · Question 2

Belted Up (BU) Belted Up (BU) is a manufacturer of hand-made leather belts for clothing. The business makes a range of sizes and colours of belts using batch production. Table 2.1 shows some details of BU’s best-selling belt, the Classic. The price of each Classic belt is $11. Table 2.1: Details of BU’s Classic belt Size Colour Number of belts sold in 2020 (000) Small Brown 10 Medium Brown 60 Large Brown 40 Small Black 15 Medium Black 80 Large Black 60 BU has an objective of internal growth. The directors of BU have decided to manufacture a new belt that can be reversed, so that it is black on one side and brown on the other. This could affect the amount of inventory held by BU and its liquidity. The directors have proposed process innovation so that the new belt can be produced by machine. The factory manager has been promoted within the business and a new factory manager is needed. An extract from the job advertisement for this vacant position is in Fig. 2.1. Job title: Factory manager We are looking for a factory manager to drive the process innovation needed to develop the production of belts. The factory manager will manage all of the 70 production workers and 8 supervisors in the factory. The manager will also meet regularly with the worker representatives. The factory manager will also manage the inventory and be responsible for the warehouse operations. Fig. 2.1: Extract from the job advertisement for the new factory manager 5 10 15 20 25

Read automatically from the paper; the printed page above is exact.