O'Level  &

YOUR ANSWER

Method 1: job production involves the manufacture of items one at a time, which would allow the juice to have an added value, as Simon spends a lot of time making juices at his house, therefore he can say that these are handmade and charge a higher price for them, unlike mass produced juices. However, it takes a long time to produce, as the juices are made one at a time.
Method 2: batch production is the production of goods in batches, where each batch passes through one stage of production before moving onto the next one. This allows for a wide range of variety, as there is the possibility of one flavour of juice being one ‘batch’, and another flavour being another ‘batch’. More variety allows risks to be spread, as Simon won’t lose customers due to them not liking one flavour or being allergic to the fruit used. Despite this, Simon will need more storage space and packaging for the drinks, as more will be produced than in job production. This is a problem that he is already having to deal with.
Method 3: flow production produces large quantities of a product in a continuously moving process. As large quantities of juice are produced, he can sell more, increasing the profit that can be gained. For these large quantities of juices to be produced, he needs large quantities of fruits as well, meaning that economies of scale (purchasing economies) can be applied since he is buying in bulk. However, flow production tends to be capital intensive, and FJ opened not too long ago, making it difficult to pay the high initial cost for the machinery needed.
Recommendation: in my opinion, batch production is the method of production FJ should use, as job production has high labour costs and is very taxing on Simon, as he is the only person making juice as of yet, and Simon has problems with storage space, meaning that it will be hard for him to store all the output produced with flow production and he wants to create a unique selling point in comparison to the mass produced juices; while batch production could create the possibility of bulk-buying, which would decrease average costs and allow Simon to save up for the expansion, and is a faster method than job production but without overproducing as much as flow production.

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