What does supply chain refer to?
The stages goods and services go through from their source to the end consumer
The process of transporting a product from one location to another
The process of getting a good or service from a warehouse to the end customer
What does procurement mean?
Ordering the right supplies from the right supplier
How long it takes from ordering stock to it arriving
Gaining and retaining customers
Which of these is an advantage of buffer stock?
There is a greater risk of running out of stock
Cost savings can be gained from the reduced need to store stock
The business is more likely to be able to meet spikes in demand
What does JIT stand for?
Just-in-time
Just-in-case
Just-inside-time
Which of these is an advantage of just-in-time (JIT)?
It eliminates buffer stock, allowing previously used storage space to be used as sales space
Buying in smaller quantities means a loss of bulk-buying discounts
Why might a small grocery shop set a low buffer stock for fresh milk?
Because it has lots of customers
To reduce waste as fresh milk has a short shelf life
To enable it to meet spikes in demand
Which of these is an advantage of just-in-case (JIC)?
The business will need to have more storage space
High amounts of cash tied up in stock
The business will benefit from bulk-buy-discounts
What are the three factors affecting the choice of suppliers?
Cost, quality, reliability
Cost, delivery time, reliability
Profit margin, quality, trust
Which best describes logistics?
Ensuring the correct products are ordered and arrive when needed
Applying logic to situations
Ordering the right products
Which of these is not an outcome of well-managed logistics?
Improved reputation
Increased costs
High customer satisfaction