2.3.2 - Working with suppliers (Part B)

In a bar gate stock graph, what is the re-order level?

• The time at which new stock is ordered

• The amount of new stock that is ordered

• The amount of stock that leads to a new order being placed

• The time at which stock levels reach zero

Which of the following is the most likely direct benefit of having an efficient logistics department?

• Stock will arrive exactly when required

• Lead times will increase

• Increased amounts of buffer stock can be held

• Insurance costs will increase

Which of the following is most likely to be an advantage to a business of using just in time (JIT) stock control?

• Last minute orders can be met successfully

• Bulk buying of stock can lead to lower costs

• Improved cash flow

• Delays in the production process are less likely to occur

When choosing a supplier, which of the following would be the most important factor to a business which uses just in time (JIT) stock control?

• Reliability

• Payment terms

• Cost

• Quality

Which of the following best describes the process of ensuring the correct supplies are ordered and delivered on time?

• Operations

• Logistics

• Procurement

• Just in time (JIT) stock control

Which of the following is a potential benefit to a business that buys larger quantities of stock in order to negotiate a cheaper price from suppliers?

• Increased quality

• Lower unit costs

• Faster delivery times

• Increased selling prices

Which of the following best describes the term, buffer stock?

• The maximum amount of stock the business can physically hold

• The amount of stock that arrives in a new delivery

• The minimum amount of stock the business wishes to hold

• The amount of stock held when a new order is triggered

Which of the following statements best describes the term, minimum stock level?

• The time between re-order and delivery of stock

• The highest level of stock held by a business at any one time

• Stock kept by a business to guard against unforeseen shortages

• The least amount of stock a business can or wants to hold

Which of the following is a consequence for a food wholesaler of holding large volumes of stock?

• Low insurance costs

• Low storage costs

• Difficulty in meeting customer demand

• Short shelf life of stock

Which of the following is a potential benefit to a clothing e-tailer of choosing a supplier that consistently delivers high quality goods?

• Increased brand loyalty

• Guaranteed higher footfall in its physical stores

• Customers will expect to pay lower prices

• Increased number of returns