A family-owned restaurant has used the same fish supplier for eight years. A market research survey now shows that customers want more locally sourced food....
Question 1 Report
A family-owned restaurant has used the same fish supplier for eight years. A market research survey now shows that customers want more locally sourced food. A nearby supplier can provide fresh fish but charges 8% more. The restaurant's procurement decision could affect its pricing, costs and reputation.
(a) What is meant by locally sourced in this example? [1]
(b) Identify one advantage of buying fish from the nearby supplier. [1]
(c) Explain one possible disadvantage of changing to the nearby supplier. [2]
(d) Which information should the restaurant collect before deciding: the supplier's delivery schedule, the chef's shoe size, customers' home addresses or the restaurant logo? [1]
Answer Details
(a) Locally sourced means obtained from a supplier close to the restaurant, or produced in the local area [1].
(b) An advantage of buying from the nearby supplier is fresher fish [1]. A shorter delivery distance, support for a local image, or potentially more reliable delivery are also acceptable.
(c) The nearby supplier charges a higher price [1]. This may reduce the restaurant's profit or require higher menu prices, which could reduce sales [1].
(d) The restaurant should collect information about the supplier's delivery schedule [1]. It is relevant to whether fresh fish will arrive when needed for food preparation.
Download The App On Google Playstore
Everything you need to excel in your exams
