Question detail
Northline Gym serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?10,612, sales of 772 units, and a 27% change in costs or demand. Which option best applies Explain procurement and logistics and their effect on efficiency and unit costs?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The role of procurement
Question
- A. Use procurement, logistics to judge supplier lead time, customers impact, and the business objective in Suppliers, logistics and supply chains.
- B. Give only a definition of The role of procurement without using the case evidence.
- C. Treat cash flow and profit as identical and ignore the effect on customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use procurement, logistics to judge supplier lead time, customers impact, and the business objective in Suppliers, logistics and supply chains.
Explanation
Choose this response because Use procurement, logistics to judge supplier lead time, customers impact, and the business objective in Suppliers, logistics and supply chains. The case evidence gives ?12,112, 772 units, and 27%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the customers, or ignore the business objective.
Common mistake
Suppliers, logistics and supply chains common mistake 1
Giving a vague answer instead of directly addressing: Explain procurement and logistics and their effect on efficiency and unit costs..
Answer by clearly explaining how to explain procurement and logistics and their effect on efficiency and unit costs..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.