A manufacturer uses JIT and relies on one overseas supplier with a six-week lead time. Which factor creates the greatest operational risk?
Low storage costs increase the quantity of buffer stock available
Small deliveries automatically produce purchasing economies of scale
Overseas sourcing guarantees that every component meets the specification under its contract
A transport disruption could stop production before replacement stock arrives
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.