Fig. 1 shows an extract from a procurement record for a bicycle assembly business. The business needs brake cables that meet its safety standard. Its curren...
Question 1 Report
Fig. 1 shows an extract from a procurement record for a bicycle assembly business. The business needs brake cables that meet its safety standard. Its current supplier has offered a discount for an annual contract, but the procurement officer is reviewing alternatives before making a decision.
(a) Which supplier offers the shortest delivery time? [1]
(b) What is meant by a minimum order quantity? [1]
(c) Explain one reason why the business should not choose a supplier using price alone. [2]
Answer Details
(a) Swift offers the shortest delivery time [1]. The procurement record referred to in the question is not included in the supplied material, so its comparison figures cannot be reproduced here; the named answer is consistent with the provided mark scheme.
(b) A minimum order quantity is the smallest number of units a supplier will allow a business to purchase in one order [1].
(c) A cheaper supplier may have slow delivery, poor quality, or an unsuitable minimum order quantity [1]. This could stop assembly or result in unsafe products and customer complaints [1]. Because brake cables must meet a safety standard, quality and reliability are essential as well as price.
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