Lesson 8.14.1

8.14.1 Location and logistics Quiz: OCR Business, Unit 8

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 8.14.1, Location and logistics: 20 multiple choice questions for the OCR Business (H431), Unit 8: Operations, written with Revision Ninja.

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The 20 questions

  1. What term describes returning business operations back to the home country?

    • Outsourcing
    • Re-shoring
    • Subcontracting
    • Offshoring

  2. What term refers to contracting external firms to perform specific operational business tasks?

    • Re-shoring
    • Insourcing
    • Outsourcing
    • Offshoring

  3. What process involves moving business activities or production processes to a different country?

    • Downsizing
    • Offshoring
    • Re-shoring
    • Merging

  4. What term describes hiring another business to complete a specific project or task?

    • Offshoring
    • Subcontracting
    • Re-shoring
    • Franchising

  5. What is the primary role of a distribution centre in modern supply chain management?

    • Primary manufacturing
    • Long-term storage
    • Raw material extraction
    • Order fulfilment

  6. What term covers managing the flow of goods, services, and information to final delivery?

    • Supply chain management
    • Human resource planning
    • Quality assurance
    • Product portfolio management

  7. A UK manufacturer moves production from China back to the UK. What is this process called?

    • Re-shoring
    • Franchising
    • Offshoring
    • Subcontracting

  8. A retailer uses third-party logistics providers instead of running its own delivery fleet. What is this?

    • Internal provision
    • Re-shoring
    • Vertical integration
    • External provision

  9. A fast-food chain opens new branches near university campuses to maximise footfall. Which factor is targeted?

    • Market proximity
    • Low transport costs
    • Cheap raw materials
    • Bulk-gaining production

  10. A bulk-reducing industry like timber milling usually locates near which factor to minimise costs?

    • Financial districts
    • Low-wage overseas labour
    • Final consumer market
    • Raw material source

  11. A brewery produces heavy bottled beer from light ingredients. Where should it ideally locate?

    • Near power plants
    • Near raw materials
    • In foreign markets
    • Near the market

  12. What technology enables real-time tracking of inventory levels across global supply chains automatically?

    • Traditional warehousing
    • RFID tagging
    • Manual stocktaking
    • Physical filing

  13. A firm experiences frequent stockouts due to unreliable overseas suppliers. What strategy reduces supply disruption risk?

    • Offshoring
    • Delaying distribution
    • Re-shoring
    • Subcontracting overseas

  14. Which qualitative factor heavily influences a high-end luxury brand's choice of boutique retail location?

    • Brand image
    • Bulk-reducing logistics
    • Unit labour cost
    • Industrial power supply

  15. What is a major financial risk associated with heavy reliance on external logistics providers?

    • Slower technological adoption
    • Higher capital expenditure
    • Reduced cost control
    • Increased fixed assets

  16. An e-commerce business uses automated software to manage stock levels and dispatch orders. What is this?

    • Manual warehousing
    • Subcontracted manufacturing
    • Traditional haulage
    • Digital logistics

  17. What is the main operational purpose of traditional warehousing in business logistics?

    • Customer retail sales
    • Rapid direct dispatch
    • Product manufacturing
    • Buffer stock storage

  18. Which quantitative factor is most critical when evaluating a location for a distribution hub?

    • High-street lease terms
    • Pedestrian footfall density
    • Transport infrastructure links
    • Nearby retail competitors

  19. What operational risk arises when a manufacturing firm outsources core production to a third party?

    • Increased fixed costs
    • Reduced quality control
    • Higher direct investment
    • Slower market response

  20. What is a key disadvantage of offshoring customer service call centres to lower-cost countries?

    • Communication barriers
    • Excessive freight costs
    • High local wages
    • Increased rent expense

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