WJEC GCSE Business Operations Supply Chain MSE

What is the definition of procurement?

• A place where resources or finished products are stored before they are sold.

• Involves obtaining or buying of goods and services from an external source to be used in the production process or to be sold on.

• A complex system of businesses, people, activities, information and resources involved in moving goods and services from source to customer.

• The process of selecting and managing suppliers to ensure the best possible price and quality of goods for production.

Why is it important for a business to have reliable suppliers?

• To ensure that the business can hold relatively little stock and reduce stockholding costs.

• To increase the number of deliveries and enhance customer dissatisfaction.

• To have a wide range of products that are expensive and of poor quality.

• To frequently change the prices of their products.

Which of the following is NOT a factor to consider when choosing suitable suppliers?

• Speed of delivery

• Payment terms

• Up to date website

• Behaviour of suppliers

What can be a problem for businesses if suppliers deliver poor quality products?

• It can help with the reputation and quality of the business.

• It can increase the business's profit margins.

• It can cause defects and returned items.

• It can reduce the need for customer service.

What is the definition of a supply chain?

• A place where resources or finished products are stored before they are sold.

• Involves obtaining or buying of goods and services from an external source to be used in the production process or to be sold on.

• A complex system of businesses, people, activities, information and resources involved in moving goods and services from source to customer.

• The process of selecting and managing suppliers to ensure the best possible price and quality of goods for production.

What is the definition of logistics in the context of business operations?

• The process of advertising and selling products

• The management of the movement of goods from where they are to where they are needed

• The financial management of a company's assets

• The hiring and training of new employees

Which of the following is NOT an advantage of the Just-in-Case (Traditional) stock control method?

• Stock usually available

• Bulk purchases may lead to discounts

• Quality of stock can be checked with longer time available

• Can reduce cash flow problems

What is a disadvantage of the Just-in-Time stock control method?

• Materials may deteriorate

• Stock only bought when needed

• Can reduce cash flow problems

• Dependence on suppliers may lead to stockouts if materials don't arrive on time

What does the stock control graph with the terms "Re-order level," "Maximum stock level," and "Minimum stock level" represent?

• A financial projection for the next fiscal year

• A timeline of a company's historical stock prices

• A representation of employee performance metrics

• A stock control system indicating when to order more stock

Why are holding stocks important for a business?

• To ensure there is enough material for marketing campaigns

• To have supplies to keep production going and meet customer demand

• To increase the company's investment portfolio

• To have a reserve for paying off company debts