Question detail
RiverRun Catering serves local families while changing supplier; the case evidence includes gross profit margin of ?4,461, sales of 881 units, and a 20% change in costs or demand. Evaluate how the business should respond to Analyse factors affecting supplier choice, including price, quality and reliability.
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
Question
Type
exam_style
Style
Topic
The role of procurement
Question
RiverRun Catering serves local families while changing supplier; the case evidence includes gross profit margin of ?4,461, sales of 881 units, and a 20% change in costs or demand. Evaluate how the business should respond to Analyse factors affecting supplier choice, including price, quality and reliability.
Answer
Build the answer from the scenario. Apply price, reliability, supplier, quality to RiverRun Catering serves local families while changing supplier, then explain how the decision changes average order value, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for suppliers, uses figures such as ?7,861 or 20%, and reaches a supported judgement based on the business objective.
Explanation
Anchor the response in evidence. This explanation is anchored to Suppliers, logistics and supply chains and The role of procurement because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates margin and markup, which helps the final judgement stay precise.
Common mistake
Suppliers, logistics and supply chains common mistake 1
Giving a vague answer instead of directly addressing: Analyse factors affecting supplier choice, including price, quality and reliability..
Answer by clearly explaining how to analyse factors affecting supplier choice, including price, quality and reliability..
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