Question detail
RiverRun Catering serves tourists while improving quality control; the case evidence includes average order value of ?2,718, sales of 663 units, and a 25% change in costs or demand. Which option best applies Explain the benefits of reduced stock costs and the risks of frequent deliveries and lost purchasing economies?
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 stock to judge labour productivity, lenders impact, and the business objective in Managing stock.
- B. Give only a definition of The role of procurement without using the case evidence.
- C. Treat stakeholders and shareholders as identical and ignore the effect on lenders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use stock to judge labour productivity, lenders impact, and the business objective in Managing stock.
Explanation
Choose this response because Use stock to judge labour productivity, lenders impact, and the business objective in Managing stock. The case evidence gives ?4,218, 663 units, and 25%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse stakeholders and shareholders, miss the lenders, or ignore the business objective.
Common mistake
Managing stock common mistake 1
Giving a vague answer instead of directly addressing: Explain the benefits of reduced stock costs and the risks of frequent deliveries and lost purchasing economies..
Answer by clearly explaining how to explain the benefits of reduced stock costs and the risks of frequent deliveries and lost purchasing economies..
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