Read the case study below and answer the questions that follow;

'We're not a necessary purchase': Small businesses raise prices, some customers push back

For much of the pandemic, small business customers were largely tolerant of price increases and kept on spending. That may be changing.

NEW YORK Inflation isn't only costing small businesses money. It's costing them customers as well.

At the Bushwick Grind Cafe in Brooklyn, New York, Kymme Williams-Davis has raised prices and switched to different types of goods to keep up with the rising costs of milk, coffee, paper goods and plastic, as well as shortages of items such as paper cups and plastic lids.

She hasn't experienced anything like this since opening in 2015. Williams-Davis says she has lost nearly half of her regular customers. Some have traded down and are buying coffee for $1 at the McDonald's or bodega on either side of the caf instead of paying the $3 she charges.

"If (customers) can get it for a dollar for not that notable of a difference, they're going next door." One customer who had been coming in for years stopped in to tell Williams-Davis he bought himself a coffeemaker.

"He said I'm going to start making coffee at home, I need to budget, so I won't be coming in here every day," she said. "I feel like I've been on a goodbye campaign."

Inflation has been rising at nearly the fastest pace in 40 years, driven up by strong consumer spending and higher costs for food, rent, medical care, and other necessities. On Tuesday, the government is expected to report that price increases slowed in August compared with a year ago, largely because of a steady drop in the cost of gas. Prices for other items, particularly food, are likely to keep rising quickly. Overall, economists forecast consumer prices rose 8.1% in August, compared with a year ago, down from 8.5% in July, according to data provider FactSet.

Ninety-seven percent of small business owners say inflationary pressure is the same or worse than it was three months ago, according to a survey of more than 1,500 small businesses by Goldman Sachs 10,000 Small Business Voices. Sixty-five percent have raised prices to offset higher costs. And 38% say they've seen a decline in customer demand due to price increases.

Q.4.1 In your opinion, should Kymme implement cloud-based forecasting to assist her in managing the fluctuations in consumer demand? Justify your stance by discussing at least 3 key points.

Note: your justification points must include theory to underpin application.

Q.4.2 There are three types of purchasing organisations. Which type of purchasing organisation (centralised, decentralised or hybrid) do you think Kymme implements? Justify your stance by discussing at least 3 key points.

Note: your justification points must include theory to underpin application.

Q.4.3 Explain any two inventory performance measures Kymme should employ.

Note: you are required to provide a paraphrased understanding of the concept before you provide an application point per performance measure. (10)

Q.4.4 Discuss internal business processes as a practice to mitigate inventory risk in relation to the case study above.

Note: you are required to provide a paraphrased understanding of the concept before you provide at least two application points.