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

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

Question 2: Explain two reasons why a business might choose to work with multiple suppliers instead of just one.

Answer: A business might choose multiple suppliers to reduce the risk of running out of stock if one supplier fails to deliver, and to get better prices or quality options through competition.

Question 3: Describe what is meant by 'just-in-time' (JIT) inventory and how it involves suppliers.

Answer: Just-in-time inventory is a system where a business receives goods from suppliers exactly when they are needed for production, reducing storage costs. This requires close coordination with suppliers to ensure timely delivery.

Question 4: List three qualities that a business should look for in a reliable supplier.

Answer: Reliability, good communication, and consistent quality of goods.

Question 5: A clothing retailer wants to ensure they have the latest fashion items in stock. Explain how choosing a fast and flexible supplier could benefit their operations.

Answer: A fast and flexible supplier can deliver new fashion items quickly, helping the retailer respond to current trends and meet customer demand promptly, which can increase sales.

Question 6: Identify two potential risks of depending heavily on a single supplier for essential materials.

Answer: If the supplier fails to deliver, the business could face production delays, and the business may have less bargaining power, leading to higher prices.

Question 7: Sketch a simple diagram to show how a business might organize its supply chain with multiple suppliers supplying different parts of a product.

Answer: A correct sketch would show a central business connected via arrows to multiple suppliers, each providing different components or raw materials, which then come together at the business for assembly.

Question 8: Explain how a business can improve its relationship with suppliers.

Answer: By communicating clearly, paying on time, providing feedback, and building trust through long-term partnerships.

Question 9: Describe the impact of delays from suppliers on a manufacturing business.

Answer: Delays can cause production stoppages, increase costs, and lead to late deliveries to customers, damaging the business's reputation.

Question 10: A business is considering switching to a new supplier. What factors should they evaluate before making this decision?

Answer: Price, quality of products, reliability, delivery times, reputation, and how well the supplier can meet the business’s specific needs.