ConceptConceptDocsDocuments

CAIE IGCSE Business Studies 4.1 production of goods and services

Use this production page to define production terms, explain lean and JIT effects and justify job, batch or flow production choices.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • Define terms such as specialisation, lean production or just-in-time inventory control.
  • Explain JIT and lean production effects on storage, waste, costs or supply risk.
  • Justify production method choices using order size, product variety and business context.

Covered syllabus points

4.1.1—Production processes4.1.2—The main methods of production

4.1. Production of goods and services question 1

[Maximum number: 6]

GAE is a multinational company. It manufactures steel. GAE has 2400 employees and has factories in 4 countries. The business regularly introduces new technology. Holding inventory is important. GAE's directors are planning to build a new factory and want to know how legal controls over location might affect this decision. The Managing Director said, 'The new factory will create many external benefits.'

Explain two reasons why holding inventory might be important for GAE.

Reason 1:
Explanation:
Reason 2:
Explanation:

4.1. Production of goods and services question 2

[Maximum number: 6]

TJK manufactures candles. Contributing to sustainable development is important to TJK. The business uses batch production in its factory in country X. The target market for TJK's products is females between 20 and 50 years of age. The Managing Director is reviewing TJK's financial data. An extract is shown in Table 3.1. He is also considering the benefits to a business of becoming a multinational company.

Table 3.1

Table 3.1

Do you think batch production is the best method of production for a business to use? Justify your answer.

All question bank results loaded