Factors Affecting Supplier Choice

Question 1

what are the factors which affect what suppliers a business chooses

Answer 1

-the cost of the raw materials
-the quality of the raw materials
-the quantity of raw materials required
-how reliable the supplier is
-the location of the supplier
-does the supplier offer trade credit

Question 2

explain how the cost of the raw materials affects the business

Answer 2

Costs need to be kept to a minimum to maximise profits.