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Worksheets3.2 The role of procurement B
Total questions: 15
Worksheet time: 8mins
Which of the following would be an example of stock for a business operating in the tertiary sector of production?
Raw materials
Work in progress
Semi-finished products
Finished products
Another common term for stock is:
Current asset
Capital
Inventory
Reserves
Which of the following is an advantage to a business of using just in time stock control?
Last minute orders can be met successfully
Benefits from purchasing economies of scale
Improved cash flow
No bottlenecks will occur in the production process
When a business buys large quantities of stock, it can often negotiate a cheaper price that results in lower unit costs. This is an example of a:
Technical economy of scale
Purchasing economy of scale
Marketing economy of scale
Financial economy of scale
Buffer stock can best be described as:
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 a business is holding when a new order is<br />triggered
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 best describes a supply chain?
The relationship a business has with its suppliers
The number of suppliers a business has direct dealings with
The steps involved in getting a product to a customer
The volume of stock a business orders from its suppliers
Which of the following businesses is likely to have a supply chain management department?
Independent café
Car manufacturer
Hairdresser
Window cleaner
When a business deals only with one supplier it is known as:
Procurement
JIT stock control
A supply chain
A sole supplier agreement
