Question 1: Define the term 'supplier' in the context of a business.

Answer: A supplier is a company or person that provides goods or services to a business.

Question 2: Explain two reasons why a business might choose to buy supplies from a local supplier instead of an overseas supplier.

Answer: Local suppliers can offer faster delivery and reduce transportation costs, making it easier to manage stock levels and respond quickly to customer needs.

Question 3: Imagine a bakery needs flour to make bread. What qualities should the bakery look for when choosing a supplier for flour?

Answer: The bakery should look for a supplier that provides high-quality flour, reliable delivery, and good prices.

Question 4: Describe two potential problems a business might face if their supplier frequently delivers late.

Answer: The business might run out of stock, leading to delays in production and unhappy customers, and it could also increase costs if they have to find emergency supplies.

Question 5: Sketch a simple diagram showing a business, a supplier, and the flow of supplies between them. Label each part clearly.

Answer: A correct sketch would include three labeled parts: the business, the supplier, and arrows showing the flow of supplies from the supplier to the business.

Question 6: List three factors a business should consider when choosing a supplier.

Answer: Quality of products, price, and reliability of delivery.

Question 7: What is meant by 'just-in-time' (JIT) inventory management, and how does it affect suppliers?

Answer: JIT is a system where a business receives supplies exactly when needed for production, which means suppliers must deliver goods quickly and reliably to avoid delays.

Question 8: Identify and explain one advantage and one disadvantage of using multiple suppliers instead of just one.

Answer: An advantage is reduced risk of supply disruption, as the business is not dependent on one supplier. A disadvantage is increased complexity and management costs.

Question 9: Imagine a clothing store needs new fabric for its garments. What might happen if the fabric supplier raises prices unexpectedly?

Answer: The store might have to increase its prices, reduce profit margins, or look for a cheaper supplier.

Question 10: Draw a flowchart showing the process of a business placing an order with a supplier, from ordering to receiving the supplies.

Answer: A correct flowchart would include steps labeled: 'Place order', 'Supplier processes order', 'Supplier dispatches supplies', and 'Business receives supplies'.

Question 11: Explain why maintaining good relationships with suppliers is important for a business.

Answer: Good relationships ensure reliable delivery, better prices, and priority treatment, which can help the business run smoothly.