Operations - Suppliers

Question 1

List 4 factors to consider when choosing a supplier

Answer 1

1. Lead Time
2. Location of Supplier
3. Quality of Raw Materials
4. Cost of Materials

Question 2

Describe ‘Lead time’ as a factor to consider when choosing a supplier

Answer 2

Amount of time taken between an order for stock being placed and order being delivered

Question 3

Describe ‘Quality of Raw materials’ as a factor to consider when choosing a supplier

Answer 3

• Has a direct affect on business’s finished product
• Poor quality = wastage

Question 4

Describe ‘Cost of Materials’ as a factor to consider when choosing a supplier

Answer 4

• the price charged by a supplier to purchase raw materials
• higher cost = higher production cost (and vice versa)

Question 5

Describe ‘Location’ as a factor to consider when choosing a supplier

Answer 5

• How far the supplier is from the business
• Further away supplier = more expensive delivery = higher product price (and vice versa)