Why is price an important factor in supplier selection for businesses?

  • Price has no impact on business operations
  • Lower prices always result in higher quality products
  • Price directly affects a business's costs and profitability
  • Price is unrelated to supply chain efficiency

Which type of production system is characterised by the continuous production of identical items?

  • Batch production
  • Job production
  • Flow production
  • Custom production

In JIC stock management, what is the primary focus when determining stock levels?

  • Efficient supply chain processes
  • Meeting customer demands exactly on time
  • Building large buffer stocks for safety
  • Reducing carrying costs

In job production, what is the typical batch size?

  • Large quantities
  • Medium quantities
  • Small quantities
  • Continuous, without batches

What benefit does a business experience when it reduces defects and rework through quality control?

  • Increased costs and higher production times
  • Lower product prices
  • Enhanced waste and waste disposal expenses
  • Cost savings and more efficient production processes

What is the primary advantage of flow production in terms of efficiency?

  • High flexibility
  • Lower production costs
  • Tailoring products to customer needs
  • Faster response to market changes

Why is quality control important for a business?

  • To increase waste and production costs
  • To prioritise quantity over quality
  • To consistently meet customer expectations and reduce defects
  • To ignore customer feedback

What is the overall goal of combining JIT and JIC strategies in stock management?

  • Maximising waste
  • Minimising customer satisfaction
  • Achieving a balanced approach that reduces waste and mitigates supply chain risks
  • Ignoring inventory management

Why is effective procurement important for a business's unit costs?

  • It has no impact on unit costs
  • It can result in cost savings through competitive sourcing and supplier selection
  • It always leads to higher unit costs
  • It guarantees low product quality

In what way can self-service options, like FAQs on a website, contribute to good customer service?

  • By increasing customer support staff
  • By providing customers with quick and easy access to answers
  • By allowing customers to search for their own answers
  • Allowing the business to save money by reducing customer support staff