Check your knowledge of key terms in inventory management and procurement by chooslng the
best definitions for these terms.
Economies of scale:
a Reducing costs per unit by increasing
production
b Cutting costs by reducing output
Buffer stock:
a Goods kept in store to cover seasonal
demand e.g. Christmas sale
b Goods kept in store to cover unforeseen
shortages or fluctuations in demand
Factory gate pricing:
a Transport costs are not included in the
purchase price ofa product
b The price is lower because you buy directly from the manufacturer
4 Supply chain:
a The close co-operation of all parties involved in the making, selling, and delivering of
a product
b Network of stores that suppty customers with a wide variety of products
5 Tender:
a An assessment or calcutation of the approximate cost or value of a product or service
b An offer for goods or services that follows a request for a quotation made by an official
body, e.g. local government
Check your knowledge of key terms in inventory management and procurement by chooslng the best definitions for these terms.
Economies of scale: a Reducing costs per unit by increasing production
Buffer stock: a Goods kept in store to cover seasonal demand e.g. Christmas sale
Factory gate pricing: a Transport costs are not included in the purchase price of a product
4 Supply chain: a The close co-operation of all parties involved in the making, selling, and delivering of a product
5 Tender: b An offer for goods or services that follows a request for a quotation made by an official body, e.g. local government