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WorksheetsSGS Business 2.3.4 Procurement: Working with Suppliers
Total questions: 22
Worksheet time: 11mins
Running the business with so little stock that new supplies have to arrive just before existing supplies run out
Bar gate stock graph
Just in case
Just in time
Stock levels
The minimum stock level held at all times to avoid running out completely
Re-order quantity
Lead time
Buffer stock
Maximum stock level
Items held by a business for use or for sale
Lead time
Stock
Warehouse
Just in time
What is an advantage of ‘just In time’?
Less of the business’s capital is tied up in stocks.
There is a greater risk of running out of stock.
Buying smaller quantities more often means losing out on bulk buying discounts.
It can lead to higher levels of quality.
What is procurement?
Knowing how to get the right supplies quickly
Obtaining the right supplies from the supplier
Ensuring that the right supplies will be ordered and delivered on time
Building a business relationship with suppliers
What is logistics?
Ensuring the right supplies will be ordered and delivered on time
Knowing how to get the right supplies quickly
Building a business relationship with suppliers
Obtaining the right supplies from the right supplier
What does trust mean?
Improving quality through the use of training
Building a business relationship with suppliers
Obtaining the right supplies from the right supplier
Developing motivational strategies to improve productivity
The level of stock that triggers the business reordering new supplies
Buffer stocks
Re-order level
Re-order quantity
Lead time
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 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
Which of the following is a benefit to a business of choosing a supplier that charges the lowest price for stock?
Flexibility on selling price
Increase in unit costs
Lower profit margins
Guaranteed high quality
Which two of the following are possible drawbacks to a high street fashion retailer of changing to a just in time (JIT) stock control system? The business...
May be unable to meet unexpected demand for fashionable products
Will have to use potential selling space to hold buffer stock
May have to increase stock room capacity
Will have a weaker cash flow
May lose out on discounts resulting from bulk buying of stock
It is vital that your supplier .....
Delivers on time
Delivers in reasonable time
Delivers when they are able to
Delivers late
Speed of delivery is important to a business, therefore
A long lead time between ordering and receiving a delivery is vital
A couple of days between ordering and receiving a delivery is acceptable
A short lead time between ordering and receiving a delivery is vital
A undefined lead time between ordering and receiving a delivery is vital
Logistics is the science behind...
The inefficient movement of materials
The efficient movement of materials
The laboured movement of materials
The movement of materials
Well managed logistics don't do which of the following?
A better reputation
Lower costs
Reduce profit
Higher customer satisfaction
