The role of procurement (1)

Which of the following is the opposite of just in time?

• Stock control

• TQM

• Just in case stock management

• Kaizen

A drawback to a business of using just in time stock control is:

• High insurance costs

• Stock could quickly become out of date or obsolete

• Storage costs will be high

• Delays in deliveries could result in idle resources

Which of the following businesses would be best suited to a just in time stock control system?

• Car manufacturer

• Nationwide footwear retailer

• Wholesaler of building supplies

• School uniform retailer

Which of the following would a new fair trade café consider as the most important factor when considering its choice of suppliers?

• Price

• Reliability

• Flexibility

• Ethical values

The business term that involves choosing a supplier, agreeing what to buy at a certain price and by when is called:

• Logistics

• Supply chain management

• Stock control

• Procurement

Which of the following is a benefit to a supplier of consistently delivering products on time?

• Repeat orders

• Lower prices

• Lower storage costs

• Minimal buffer stock held

Supply chain management is increasingly difficult and complex due to:

• The increased pace of globalisation

• The UK’s ageing population

• Economies of scale

• Improvements in communication systems

Which of the following job roles would be found within the logistics department for a large supermarket chain?

• Customer services manager

• Warehouse manager

• Retail manager

• Human resources manager

Which area of business will Amazon particularly focus upon to ensure customer deliveries arrive on time?

• Finance

• Sales

• Logistics

• Marketing

The time difference between a business ordering and receiving stock is called the:

• Reorder quantity

• Lead time

• Buffer stock

• Reorder level