XAT 2020 — Decision Making Question 15
Read the following paragraph carefully and answer the question that follows:
The Small Shop, selling computer peripherals, is the only one of its kind in the remote village of Turturunk. Because online purchases take two weeks or more to arrive, The Small Shop is a quick stop for buying items such as pen drives and USB cables. Besides selling computer peripherals, The Small Shop also undertakes repairs of out-of-warranty products.
The Small Shop wants to increase the variety of products sold, including expensive ones. However, it is averse to accumulating unsold products, specifically of the expensive kind.
Which of the following is the BEST option if The Small Shop wants to increase the variety of the products it sells?
Answer & solution
- A
The Small Shop should acquire extra space at lower rentals available at a distance of three kilometres from its current location.
- B
The Small Shop should focus only on low-end peripherals that currently contribute to 60% of its revenues.
- C
The Small Shop should get suppliers to courier its requirements to the shop whenever needed. The suppliers require that The Small Shop orders a minimum quantity every month.
- D
The Small Shop should focus exclusively on high-end peripherals which contribute to 10% of its revenues but 25% of its profits.
The Small Shop should make an arrangement with a retailer of the nearest city. The shop can spare one of its employees once a week to procure the weekly requirements.
The question is about increasing the variety of products. It does not state that the Small Shop has limited space to display more products. Thus option 1 is beyond the scope of the passage. Options 2 and 4 are also incorrect as they talk about peripherals and not about variety. Option 3 is incorrect as the paragraph states that The Small Shop does not want to accumulate unsold products while a minimum quantity every month is needed for couriering which might lead to accumulation of unsold products. Only option 5 is correct as it will not only increase the variety of products sold, it will also ensure that no unsold products are accumulated as only weekly requirements will be procured.
Hence, option (e).