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The diagram below shows the bar gate stock graph for Billionaire's Shortbread slabs at Hotel Chocolat's Plymouth store during April 2015 - Edexcel - GCSE Business - Question 6 - 2017 - Paper 1
Question 6
The diagram below shows the bar gate stock graph for Billionaire's Shortbread slabs at Hotel Chocolat's Plymouth store during April 2015. During April this store rec... show full transcript
Worked Solution & Example Answer:The diagram below shows the bar gate stock graph for Billionaire's Shortbread slabs at Hotel Chocolat's Plymouth store during April 2015 - Edexcel - GCSE Business - Question 6 - 2017 - Paper 1
Step 1
What is meant by the term buffer stock?
Answer
Buffer stock refers to a supply of raw materials or finished products held by a business to protect against higher than expected demand or delays in delivery. It serves as a safety net to ensure that operations continue smoothly without interruptions. For example, in the context of Hotel Chocolat's Plymouth store, having a buffer stock could mean holding 20 slabs of Billionaire's Shortbread to prevent stockouts due to unforeseen circumstances.
Step 2
How many slabs were delivered in delivery C?
Answer
To determine the number of slabs delivered in delivery C, we analyze the stock levels. At point B, the stock was at 240 slabs before delivery C, and it rose to 260 slabs after the delivery. Thus, the number of slabs delivered in delivery C can be computed as:
Step 3
How long did it take for delivery B to arrive after re-ordering?
Answer
To calculate the time taken for delivery B to arrive after re-ordering, we can observe the stock levels. Delivery B was ordered when the stock reached the reorder level at day 10 and arrived 16 days later. Thus, we calculate: