A supplier charges 8% less than rivals but has frequent defects and late deliveries. Which conclusion is strongest?
The lower purchase price may be outweighed by rework, delays and dissatisfied customers
Procurement should always select the supplier with the lowest quoted price
Defective materials can improve quality assurance by increasing inspection time rather than reducing faults
Delivery reliability is irrelevant when the purchase price is below competitors
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.