1. Fair Coffee (FC) David is about to open a small coffee shop, Fair Coffee (FC), at a central city location. On opening day FC will have a stock level of 500 kg of coffee beans. David estimates that the coffee beans will be used at a constant rate for the first six months of operation. David's planned stock management figures for the coffee beans are shown below: Maximum stock level 500 kg Minimum stock level 200 kg Re-order quantity level 350 kg Re-order quantity 300 kg Quantity used per month 150 kg Lead time for delivery of the coffee beans: 1 month. (a) State two elements of the extended marketing mix (seven Ps) for FC. [2] (b) Using the information in the table, construct a fully labelled stock control chart for FC, for the first six months of operation. [4] (c) A delivery of coffee beans was 1 month late, arriving on the last day of the seventh month rather than the last day of the sixth month. Using figures from the chart you constructed in part (b), explain the effects of: (i) the late delivery on FC's stock level and; (ii) the late arrival delivering only 75 kg of coffee. [2] [2]