A technician prepared a report for PPS Furniture Studio after observing its workshop for one month. Fig. 1 shows a modular desk being assembled. PPS designs...

(a) A unique selling point, USP, is a feature or benefit that makes a product different from competitors' products [1] and gives customers a reason to choose it [1]. [2]

(b) PPS's modular design and its suitability for small flats are two possible USPs. Folding or space-saving sections, built-in storage and customer-designed desks would also be valid. [2]

(c) Customers expect a desk by the agreed date [1]. Late delivery causes dissatisfaction [1], and customers may cancel orders or ask for refunds [1]. Poor reviews can damage PPS's reputation [1], which matters because furniture buyers may look at reviews before ordering [1]. Reliable delivery encourages recommendations and repeat purchases, improves sales and profit, and can differentiate PPS from cheaper standard-desk competitors. [5]

(d) Holding more stock reduces the chance that a missing component stops production [1], so it could shorten the present 18-day wait [1]. It gives PPS more control over production [1], but ties up scarce cash in components [1] and creates a risk that stock is damaged or becomes obsolete [1].

A faster supplier reduces lead times without PPS holding large quantities [1], but may charge higher prices and reduce the profit margin [1]. The best choice is a faster supplier if its additional cost is less than the lost profit and reputational damage caused by late deliveries [1]. If demand is predictable and storage is cheap, holding a limited safety stock is justified [1]. [7]