Question detail
SwiftServe serves repeat customers while raising prices; the case evidence includes unit contribution of ?10,868, sales of 718 units, and a 27% change in costs or demand. Analyse how the business should respond to Explain the benefits and costs of holding spare stock and buffer stock.
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At a glance
Question
Type
exam_style
Style
Topic
The role of procurement
Question
SwiftServe serves repeat customers while raising prices; the case evidence includes unit contribution of ?10,868, sales of 718 units, and a 27% change in costs or demand. Analyse how the business should respond to Explain the benefits and costs of holding spare stock and buffer stock.
Answer
Start with the business context. Apply stock, buffer stock to SwiftServe serves repeat customers while raising prices, then explain how the decision changes labour productivity, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for customers, uses figures such as ?14,268 or 27%, and reaches a supported judgement based on the business objective.
Explanation
Use the command word first. This explanation is anchored to Managing stock and The role of procurement because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates gross and net profit, which helps the final judgement stay precise.
Common mistake
Managing stock common mistake 1
Giving a vague answer instead of directly addressing: Explain the benefits and costs of holding spare stock and buffer stock..
Answer by clearly explaining how to explain the benefits and costs of holding spare stock and buffer stock..
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