How many years in advance is green coffee typically purchased for use?

How many years in advance is green coffee typically purchased for use?

• A. 3 years
• B. 1 year
• C. 5 years
• D. 2 years

Answer: (B)

Green coffee is typically purchased one year in advance for use. This practice allows Starbucks to secure consistent quality and supply, providing the company with the opportunity to assess and manage its inventory effectively. By purchasing green coffee one year ahead, Starbucks can also navigate market fluctuations, ensuring that it can meet consumer demand without shortages or price volatility. This advance procurement strategy is essential in the highly variable coffee market, where factors such as weather, harvest yields, and global demand can significantly impact availability and prices. The one-year timeframe strikes a balance between securing coffee at a manageable cost while still allowing for flexibility in sourcing and supply chain management.

Green coffee is typically purchased one year in advance for use. This practice allows Starbucks to secure consistent quality and supply, providing the company with the opportunity to assess and manage its inventory effectively. By purchasing green coffee one year ahead, Starbucks can also navigate market fluctuations, ensuring that it can meet consumer demand without shortages or price volatility. This advance procurement strategy is essential in the highly variable coffee market, where factors such as weather, harvest yields, and global demand can significantly impact availability and prices. The one-year timeframe strikes a balance between securing coffee at a manageable cost while still allowing for flexibility in sourcing and supply chain management.