A sole trader who sells decorated cakes from home has introduced cloud-based inventory software. The software sends an alert when ingredients are low and re...
Question 1 Report
A sole trader who sells decorated cakes from home has introduced cloud-based inventory software. The software sends an alert when ingredients are low and records the cost of each order. Before using it, the owner often ran out of food colouring during busy weekends. She wants to improve the way the business plans production.
(a) Which item of information would the owner enter into the inventory software for each cake order? [1]
(b) Explain one benefit to the business of using the inventory software. [3]
Answer Details
(a) The owner could enter the quantity of ingredients used for each cake order. Customer order details, ingredient costs, or the date required are also valid information for the inventory system. [1]
(b) Inventory records show when stock, such as food colouring, is low. [1] The owner can reorder ingredients before production stops. [1] This reduces delays or lost sales and can improve customer service, especially during busy weekends. [1]
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