A factory using JIT receives a vital component two days late. What is the most likely consequence?
Storage costs immediately increase because buffer stock is full
The factory gains a larger bulk-buying discount
Quality assurance prevents any interruption to production
Production may stop because little spare stock is available
38 exam-style questions on Edexcel GCSE Business 2.3 Making operational decisions, covering 2.3.1a The purpose of business operations, 2.3.1b Production processes, 2.3.1c Impacts of technology on production, 2.3.2a Managing stock: bar gate stock graphs, 2.3.2b Managing stock: just in time (JIT), 2.3.2c Relationships with suppliers, 2.3.2d Impact of logistics and supply decisions, 2.3.3a Quality control and quality assurance, 2.3.3b Quality, costs and competitive advantage, 2.3.4a The sales process, and 2.3.4b The importance of good customer service. Each one has a worked solution and a mark scheme showing where the marks go.