Rugged Back Packs (RBP) RBP is a manufacturing business that specialises in producing travel bags and backpacks. The products are sold by many different retailers. The brand of RBP has become well known for quality and reliability. Each retailer requires a fast response to orders for more inventory from RBP. RBP holds high levels of inventories to enable it to respond to orders from retailers within 48 hours (see Fig. 1). The inventory is kept in a secure warehouse next to the factory. [Figure 1: Inventory control chart] RBP employs around 100 employees in the factory. Most of the employees are skilled operators of the machinery used to make the bags. The factory manager was dismissed last month because productivity levels had fallen and the factory was not achieving RBP's production targets. This manager had many disagreements with the employees and most of the workforce is demotivated, with high levels of absenteeism and labour turnover. RBP's factory is now managed by Maya. Maya is a very experienced manager and she was described by her previous employer as having a high level of emotional intelligence.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [2] A correct definition will contain: A brand is a name, term, design or symbol
2. [2] A correct definition will contain: Distinguishes one seller's product from those of others/makes it unique.
3. [1] A partial, vague or unfocused definition
4. [1] Percentage/proportion or formula
5. [1] per year/time period (this could be in the formula)
6. [1] Employees/workforce that leave
7. [3] Content: The proportion/percentage/rate of a firm's workforce/employees that leave during a certain time period.
8. [3] Content: Number employees who left in a given time period / Total number of employees × 100
9. [1] Maximum inventory level: 60 000
10. [1] Buffer inventory level: 10 000
11. [1] Re-order quantity: 50 000
12. [3] Shows understanding of a use of an inventory control chart in context
13. [2] Identification of a use of an inventory control chart in context
14. [1] Identification of a use of an inventory control chart
15. [Content] Can be used to make sure RBP do not run out of stock – v important as shops require quick response
16. [Content] Can analyse the lead time required for re-orders
17. [Content] Can make sure RBP do not hold too much stock
18. [Context] RBP known for reliability
19. [Context] Retailers require a fast response
20. [Context] RPB holds high levels of inventory to ensure a fast response to retail orders
21. [Context] Respond to orders within 48 hours
22. [4] Good analysis of two (or more) disadvantages of holding a high level of inventory in context
23. [3] Good analysis of one disadvantage of holding a high level of inventory in context
24. [1-2] Limited analysis of two (or more) disadvantages of holding a high level of inventory
25. [1] Limited analysis of one disadvantage of holding a high level of inventory
26. [Content] Cost of storing the stock (i.e. warehousing, insurance etc.)
27. [Content] Possibility of stock becoming obsolete – new designs, materials etc.
28. [Content] Possibility of demand changing – colours, fashions etc.
29. [Content] Cash tied up inventory – opportunity cost
30. [Example of application/context] RBP produces large items (travel bags) and keep them in a warehouse next to the factory
31. [Example of possible analysis] Will increase the cost of each bag produced and decrease the profit of the business.
32. [7] A justified evaluation based on argument(s) of the importance of emotional intelligence in context
33. [6] Developed evaluation based on argument(s) of the importance of emotional intelligence in context
34. [5] An evaluative statement based on argument(s) of the importance of emotional intelligence in context
35. [4] Argument (two-sided) about the importance of emotional intelligence in context
36. [3] Argument (one-sided) about the importance of emotional intelligence in context
37. [3-4] Shows understanding of emotional intelligence in context
38. [1-2] Shows knowledge of emotional intelligence
39. [Content] Emotional intelligence is the ability to recognise your own and other people's emotions, to discriminate between different feelings and identify them appropriately, and to use emotional information to guide thinking and behaviour. Importance in motivating employees, increasing productivity, reducing absenteeism and turnover.
40. [Context] 100 workers who will need to be motivated and led and this may require emotional intelligence, especially since the workers are skilled and therefore not easily replaced.
41. [Context] RBP has high levels of absenteeism and labour turnover – Maya will need to resolve the underlying issues if she is to make the factory more productive
42. [Context] The previous manager was sacked due to lack of productivity. If this is to be solved Maya will need to be able to motivate the workers
43. [Counter-argument] However, the productivity issue may not be due to a lack of emotional intelligence from the previous manager, but there may be a more important reasons, such as poor training, equipment etc...
44. [Counter-argument] The factory may need a more authoritarian approach to increase productivity
45. [Example Evaluation] Overall Maya having high levels of emotional intelligence is likely to be important, as it will help her understand the issues of the workforce that she manages. (EVAL – statement)
46. [Example Evaluation] However, it depends upon why the productivity levels are low. If the main issue was the disagreement between the previous manager and the workforce then it is likely to be very important. (EVAL - developed)
47. [Example Evaluation] However, this is unlikely to be the only issue and Maya will need more than just emotional intelligence to hit the production targets for RBP. (EVAL – justified)