Shanghai is a Chinese restaurant in Manhattan that recently changed its ingredients' supplier. The owner trusted the previous supplier to deliver authentic and fresh ingredients on short notice and completely avoided stocking up ingredients. However, the previous supplier defaulted in terms of quality and provided adulterated ingredients. Shanghai was concerned about losing its customers if the news of the adulterated ingredients spread and changed its supplier after a survey of potential suppliers to retain its credibility. Which of the following statements is true about this scenario?

Question

Quizplus · Accepted Answer

The scenario suggests that Shanghai did not completely switch to a new type of supplier, as they only conducted a survey of potential suppliers and modified their existing rebuy system. This implies that they did not consider completely new suppliers, and instead chose to modify their purchasing process with their existing supplier to improve the quality of their ingredients. Choice A is not necessarily true based on the information given, as just-in-time inventory may not have been relevant to Shanghai's decision to change suppliers. Choice B is not backed up by the scenario and is therefore incorrect. Choice D is also incorrect, as the scenario implies that Shanghai did survey potential suppliers before making a decision.

Shanghai Is a Chinese Restaurant in Manhattan That Recently Changed