IB Business Management HL 5.6.1 Hl Supply Chain Process Topic Practice

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Study 5.6.1 (HL)—Supply chain process conceptsOpen the corresponding Concept lesson for explanations, examples and exam connections.

Question 1

[Maximum number: 2]

Jill Anderson


Jill Anderson operates a restaurant. Although Jill's meals are viewed as being excellent quality, sales are slowing. Jill is considering replacing existing meals with gluten-free meals. The following financial and forecast information is for the month of May 2018. Jill's restaurant can only produce either existing or gluten-free meals.

Table 1: Existing meals

Table 1: Existing meals

Table 2: Estimated costs and price if Jill produces the gluten-free meals

Table 2: Estimated costs and price if Jill produces the gluten-free meals

A local gluten-free manufacturer, which is not part of Jill's existing supply chain, has offered to supply already prepared gluten-free meals at $8\$ 8 per meal. Jill is unsure whether to make or buy the gluten-free meals.

Define the term supply chain.

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