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
