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2.3.2 - Working with suppliers (Part A)

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

Which of the following best describes the term, just in time (JIT) stock control?

a)

The stock which a business holds

b)

A diagram which shows business stock levels and usage over time

c)

A system whereby stock arrives only when it is needed by the business

d)

The minimum amount of stock that a business holds at any one time

2.

Which of the following is a drawback to a business of using just in time (JIT) stock control?

a)

High insurance costs

b)

Stock could become out of date or obsolete

c)

Storage costs will be high

d)

Delays in deliveries could result in idle resources

3.

Which of the following businesses is most likely to operate a just in time (JIT) stock control system?

a)

Car manufacturer

b)

Nationwide footwear retailer

c)

Wholesaler of building supplies

d)

School uniform retailer

4.

Which of the following factors would a café, which prides itself on the sale of ethically sourced products, consider the most important when choosing its suppliers?

a)

Cost

b)

Delivery

c)

Availability

d)

Trust

5.

Which of the following terms best describes the process of choosing a supplier, agreeing what to buy, at what price and by when?

a)

Just in time (JIT) stock control

b)

Logistics

c)

Stock control

d)

Procurement

6.

Which of the following statements is true in relation to the bar gate stock graph below?

a)

The business experienced a stock out in month one

b)

The maximum stock level the business wishes to hold is 4 cartridges

c)

The lead time for each delivery is always two months

d)

D The re-order quantity in month two is 6 cartridges

7.

On a bar gate stock graph, which of the following terms describes the size of an order that is delivered to a business at a set moment in time?

a)

Maximum stock level

b)

Re-order quantity

c)

Minimum stock level

d)

Re-order level

8.

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

a)

Customer services manager

b)

Warehouse manager

c)

Retail manager

d)

Human resources manager

9.

Which of the following areas of business is most likely to be responsible for ensuring customer deliveries arrive on time?

a)

Production

b)

Sales

c)

Customer services

d)

Logistics

10.

Which of the following terms describes the time difference between a business ordering and receiving stock?

a)

Re-order quantity

b)

Lead time

c)

Buffer stock

d)

Re-order level

11.

Which of the following best describes the term, logistics? Ensuring the…

a)

Correct supplies are ordered, stored and delivered on time

b)

Cheapest supplies are purchased

c)

Highest quality supplies are purchased and delivered

d)

Most reliable supplier is chosen

12.

Which two of the following are most likely to occur when a business introduces just in time (JIT) stock control?

a)

Lower stock holding

b)

An increase in obsolete stock

c)

More frequent deliveries

d)

A build-up of unsold stock

e)

Increased storage space is required

13.

When choosing a new supplier, which two of the following would be the most important factors for a discount supermarket to consider if it is currently experiencing delays in delivery?

a)

Quality

b)

Cost

c)

Reliability

d)

Availability

e)

Payment terms