Fig. 1 shows a simplified supply route for FrostBay, a business making frozen yoghurt tubs for supermarkets. A fault at the fruit-processing site has stoppe...
Question 1 Report
Fig. 1 shows a simplified supply route for FrostBay, a business making frozen yoghurt tubs for supermarkets. A fault at the fruit-processing site has stopped deliveries of berry puree. FrostBay's procurement manager must decide how to keep production running without damaging product quality or supermarket relationships.
Fig. 1
(a) Identify the business in Fig. 1 that turns berries into puree. [1]
(b) Explain one way the fault at the processor could affect FrostBay's production. [2]
(c) Which one of the following is FrostBay's immediate customer in the supply route? [1]
A The fruit farm
B The processor
C The supermarkets
D The berry growers' employees
(d) Explain one benefit of FrostBay having a second approved processor. [2]
(e) Identify one reason why a supermarket may be concerned if yoghurt deliveries are late. [1]
(f) Explain one way FrostBay could communicate with supermarkets to protect its relationship during the disruption. [2]
(g) What is one reason why the procurement manager should check the quality of puree from an alternative processor? [2]
(h) Explain one possible effect on FrostBay's profit if it uses a more expensive emergency supplier. [3]
(i) When might FrostBay decide not to use the emergency supplier, even though it can deliver immediately? [2]
Answer Details
(a) The processor, or fruit-processing site, turns berries into puree. [1]
(b) Because of the fault, FrostBay may receive no berry puree or receive it late. [1] Without this ingredient, frozen-yoghurt production may slow down or stop. [1]
(c) FrostBay’s immediate customer is the supermarkets, because FrostBay supplies yoghurt tubs to them. [1]
(d) A second approved processor provides an alternative source of puree. [1] This helps production continue and reduces the risk of missed supermarket orders. [1]
(e) A supermarket may be concerned because empty shelves can cause lost sales and disappointed customers. [1]
(f) FrostBay should give supermarkets early and accurate information about the disruption. [1] This allows them to plan stock and deliveries, helping to maintain trust. [1]
(g) Puree from an alternative processor may differ in flavour, safety or consistency. [1] Poor-quality puree could lead to rejected yoghurt or customer complaints, so it must be checked. [1]
(h) An emergency supplier may raise ingredient or transport costs. [1] If FrostBay cannot raise its selling price, the profit margin falls. [1] However, continued supply may avoid some lost sales, which is a possible offsetting benefit. [1]
(i) FrostBay may reject the emergency supplier if its puree does not meet required quality or food-safety standards. [1] It may also decide not to use it if its cost is greater than the likely value of sales that the supply would protect. [1]
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