During a disruption at the Red Sea shipping route, an importer in Lahore finds that machinery parts are arriving several weeks late. The firm assembles irri...
Question 1 Report
During a disruption at the Red Sea shipping route, an importer in Lahore finds that machinery parts are arriving several weeks late. The firm assembles irrigation pumps for farmers and depends on parts from East Asia. Managers are reviewing the risks that global trade can create for Pakistan's manufacturing industry.
(a) State one effect of a late delivery of machinery parts on the factory. [1]
(b) Describe one reason why the firm imports specialised parts. [1]
(c) Explain three ways the factory could reduce the impact of future transport disruption. [3]
Answer Details
(a) Production may stop / orders may be delayed / workers may have no work. [1] (b) The parts may not be made in Pakistan / foreign suppliers may have the required technology or quality. [1] (c) Any three: hold a larger buffer stock of essential parts [1]; use more than one overseas supplier [1]; seek a supplier in a nearer country or within Pakistan [1]; plan alternative sea, rail or air routes [1]; redesign products to use locally available components. [1]
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