Analyse the advantages to a business of using mass customisation.

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. Understanding of mass production
2. Understanding of customisation
3. Any reference to advantages of mass production/customisation in a manufacturing context
4. Increases the ability of the business to satisfy customer needs; slight differences in products might more easily satisfy consumers
5. Reduces the costs of customising products assuming the volume is sufficiently high for each variation of the product
6. The components/materials used in each variation will be the same or similar in most cases but still allow for some bulk-buying discounts
7. The customisation of products is a strong marketing point which can be used to promote a business and its products
8. This allows a business to differentiate itself from its competitors and therefore increase the strength of the brand of the product
9. By responding to customer needs through the process of mass customisation a business might gain a better understanding of exactly what its customers want, and this might allow more focused product development
10. Understanding of inventory control
11. Reference of the control of inventory to the type of items to be found in a hotel such as, for example, food, bedding, towels, cleaning materials
12. A suitable level of inventory is needed to satisfy customer needs, in this case guests in the hotel
13. Most hotels serve meals and so the hotel will need to hold sufficient food supplies to provide meals to the guests as required
14. Food stock will need to be carefully monitored to ensure that food is used within a suitable period. Food usually has a date by which it should be used (shelf life)
15. A hotel will want to purchase its inventory at the best possible price but will have to be aware of the shelf life of the goods being purchased. Food not kept in the right conditions might cause illness to guests
16. The reputation of hotels can depend on the quality of the food served
17. Hotels also need to keep sufficient bedding and towels to adequately meet the needs of guests
18. A sudden surge in demand for the services of the hotel must not leave the business unable to meet the needs of its guests therefore sufficient inventory must be held for that purpose
19. Can the reputation of the business be ruined if goods are not stored in sufficient quantities and the hotel cannot meet the demands of customers?
20. Although many hotels will have a steady flow of guest bookings it can also be difficult to predict a sudden surge or slump in demand e.g., the coronavirus pandemic caused a collapse in bookings leaving hotels with inventory ready to meet the demand of guests who never arrived
21. Inventory control is not only about the quantity but equally importantly about the methods of storage used – cleaning materials will need to be stored safely (hazardous substances) but the most important are probably the food items which need to be stored correctly (perhaps refrigerated) and used in a timely manner
22. Businesses need to make a profit which can be aided by careful inventory control.
23. Other factors may be equally important such as quality of customer service given, sufficient well trained staff, it may depend on the type of hotel.
24. Can risk factors be planned for in terms of effective inventory control?