University of South Africa MNP 2601 MNP Past Papers. 100% Score

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May/June 2017 Question 1 Why are Uber drivers able to sell more rides to passengers by focusing on improved customer lead time? 1. The can offer a ride to passengers at relatively short notice 2. ... The use different vehicles based on the different passenger needs 3. They are carefully screened by the Uber company before being included in Uber’s transportation network 4. They can also participate in the UberEATS and the UberRUSH networks during off-peak periods Question 2 – Ass2,Sem2,Q2-2018 In which way is quality built into Uber’s supply chain? 1. Making the Uber service available in African countries with traffic challenges 2. Exploiting the opportunity f growing middle class in need of fast transportation 3. Remunerating Uber drivers on a weekly basis via direct deposit 4. Evaluating Uber drivers after every ride using the Smartphone application Question 3-Ass2,Sem2,Q3-2018 Uber has made the shift from a supply-driven supply chain to a demand-driven supply chain, which shows in their ability to … 1. Develop a smartphone application to connect supply and demand. 2. Identify suitable drivers for transporting people and goods. 3. Provide the type of transportation service option requested by the customer. 4. Offer all types of multiple services, ranging from transporting people to delivering meals and parcels Question 4- Ass2,Sem2,Q4-2018 Should farmers’ associations consider the Uber business model to move locally produced food directly from local farms to end consumers or retail stores, the shared supply chain processes could be optimised by … [1] charging the lowest price and no delivery fees. [2] using recyclable packaging material to promote sustainability. [3] purchasing empty space on other distributors’ trucks. [4] classifying fresh produce as leverage items in the strategic sourcing matrix.Question 5- Ass2,Sem2,Q5-2018 Should local farmers use the Uber concept to deliver fresh produce directly to retailers by synchronizing their orders with those routes that logistics providers already use, local fresh produce retailers could, in turn, improve their rate of return by …? [1] lowering the purchasing costs of fresh produce and realizing a higher profit margin. [2] Lowering the selling price of fresh produce and buying a bigger variety of fresh produce [3] Increasing transportation costs and saving on electricity expenses related to refrigeration. [4] Increasing the carrying costs of fresh produce and offering a wider variety of fresh produce items. Scenario: The owner of a bridal boutique situated on the outskirts of Johannesburg realizes that they should adapt their business model to include deliveries. During a staff meeting, colleagues suggest that the shop should consider using the UberRUSH service for deliveries to brides and bridal parties. The boutique's owner compares UberRUSH with other local courier companies to find the best provider (supplier) of transportation services. Question 6 Ass2,Sem2,Q6-2018 Which supplier assessment criterion is priority to the boutique's owner if they require different transportation options from the service provider to do different types of deliveries of bridal products? [1] quality [2] price [3] geographic location [4] flexibility Question 7 Ass2,Sem2,Q7-2018 Which supplier assessment criterion is priority if the boutique's owner focuses on demand-pull, which requires that they fulfill small orders of bridal products more frequently? [1] delivery [2] quality [3] financial status [4] price Question 8 Ass2,Sem2,Q8-2018 Which supplier assessment criterion would be the most important if the bridal boutique owner prefers identifying an Uber vehicle closest to the boutique at the time when a delivery service is required? [1] ethics [2] cost structure [3] geographic location [4] quality accreditationQuestion 9 Ass2,Sem2,Q9-2018 What type of relationship would the bridal boutique have with the Uber driver that they use if they decide on Uber as a courier service provider? [1] alliance [2] collaborative [3] transactional [4] application Question 10 Should the bridal company decide on the Uber company as their preferred courier provider and should Uber prove to be the same good partner as they are to other small businesses worldwide, the relationship between the bridal boutique and the Uber company could be described as: 1. Arms length 2. Price-focused 3. Techno-savvy 4. Cooperative Question 11 to 20 are based on theory Question 11 Which one of the following is an example of subjective performance measure that can be used to measure the performance of the purchasing and supply management department? 1. Inventory holding 2. Invoice price variance 3. Rejection ratio 4. Team-building Question 12 Which one of the following is a materials flow metric that measures the availability of materials and services, as well as the hours of uninterrupted production? 1. Materials handling 2. Production planning and control (not sure) 3. Expenditure ratio 4. Promptness factorQuestion 13 The action of comparing purchasing and supply performance between various divisions or between various organizations is known as.... 1. Gaining commodity knowledge 2. Setting budget objectives 3. Performing benchmarking 4. Following historical approach Question 14 Ass1,Sem2,Q8-2018 Which organisational function is mainly responsible for keeping a copy of the order for the purpose of following up and expediting an order, as well as using it as a control measure in the case of part deliveries of the order? 1. Finance 2. Receiving 3. Inspection 4. Purchasing Question 15 Ass1,Sem2,Q9-2018 Which one of the following activities is typically performed when following up with the supplier after placing an order? 1. Assisting the supplier in obtaining an import permit 2. Bidding and negotiation 3. Checking for orders not received on the delivery date 4. Determining the origin of the need Question 16 If a manager arrives at your desk to ask for the actual price data and planned price data for the past two months, he is most likely calculating the following: 1. Price variance ratio (not sure) 2. Invoice price variance 3. Expenditure ratio 4. Promptness factor Question 17 In terms of the purchasing process, the activity of _______ should fall within the authority and responsibility of the purchasing function only, mainly because such an activity is a legally binding step. 1. Describing requirements 2. Selecting suppliers 3. Bidding and negotiation 4. Placing the orderQuestion 18 Ass2,Sem2,Q11-2018 Logistics management is often confused with supply chain management, since practitioners seem not to know that logistics management.... 1. Is the more strategic version of supply chain management 2. Involves the sourcing and management of suppliers as critical role-players in the supply chain. 3. Refers to managing the movement and storage of goods as part of supply chain management 4. Is a broader concept, which includes supplier management, purchasing management and supply chain management Question 19 What is the main difference between a supply chain and value chain? 1. A supply chain is focused on the supply activity, whereas the value chain is focused on value-adding activities. 2. A supply chain has different upstream and downstream linkages, whereas the value chain has only downstream linkages. 3. A supply chain consists of the value-adding activities of a network of organizations, whereas a value chain consists of the value-adding activities of a specific organization. 4. A supply chain focuses its activities on satisfying the final consumers need, whereas a value chain coordinates the supply chain activities of different supply chain role-players. Question 20 Ass2,Sem2,Q13-2018 In a typical supply chain, an upstream linkage will be on the ________ side of the supply chain. 1. Supplier 2. End consumer 3. Focal firm 4. OutboundOctober/November 2017 Question 1 In a typical supply chain, as described in the case study, an upstream linkage connected to a retailer will be a(n) 1. Supplier 2. End-consumer 3. Focal firm 4. Fast-moving consumer good Question 2 The case study mentions that retailers should never stop looking for ways to reduce lead times. How can transportation carriers assist in reducing retailers lead time? 1. By doing delivery to retailers on relatively short notice 2. By using different sizes vehicles based on different retailers needs 3. By carefully screening their drivers before being appointed 4. By using idle space to transport goods to outlying neighboring stores Question 3 Since profit margins are tight, retailers can improve their rate of return by______ 1. Lowering their purchasing costs of goods to realize a higher profit margin 2. Lowering the selling price of their goods and having a wider variety of goods 3. Increasing transportation costs and saving on electricity expenses related to refrigeration 4. Increasing the carrying costs of goods and offering premium price products Question 4 Which phrase from the case study implies that organisations are moving to demand pull? 1. “Carriers have to make more frequent deliveries” 2. “Strikes are a prime example that illustrates the need for contingency planning” 3. “Fuel costs and electricity rates are increasing continuously” 4. “Retailers cannot only plan for when things go right”Question 5 Optimum inventory at retail outlets would imply a situation where 1. Transportation costs from warehouses are the lowest 2. Overall inventory costs are the lowest 3. Inventory holding costs equal inventory ordering costs 4. The stock-out costs of inventory are related to transportation costs Question 6 If retailers protect themselves against irregular supply due to public holidays and hold more items in store, such additional items are known as ____________ inventories 1. Unavoidable 2. Economic 3. Synchronized 4. Buffer Question 7 Which one of the following would be an example of a service purchased by retailers? 1. Quality-approved vehicles 2. Specialised check-our facilities in store 3. Temporary carriers contracted during strikes 4. Special trolleys for moving odd-sized inventory items Question 8 Since retailers have less backroom to keep additional inventory, suppliers might have no option but to keep the items at their premises when ordered by the retailers. In a supply chain, retailers should consider the following when keeping items at supplier’s premises 1. Suppliers should not be asked to hold enough safety inventory for retailers, based on ethical reasons 2. Even if the suppliers is located near the premises of the retailer, it would still be best to hold inventory at the retailers premises 3. Inventory held by a supplier can have cost implication for the supplier, which will be transferred to the retailer 4. The best decision is to keep all inventory items at supplier to lower overall costsQuestion 9 In the case study, the concepts of both logistics management and supply chain management are mentioned. Which statement is correct about the different between these two concepts? 1. Supply chain management involves activities related to the effective flow of material and information within the boundaries of a specific organisation 2. The focus of logistics management is on managing relationships between different organisations across the entire supply chain 3. Logistics is that part of the supply chain that manages the forward and reverse flows of goods and information from the point of origin to the point of consumption 4. Supply chain management focuses on optimizing wealth for a single organisation by adding value. Question 10 In the case study, different logistics activities are mentioned. Which one of the following can be categorized as both an inbound and outbound logistics activity? 1. Order processing 2. Cross-docking 3. Transportation 4. Distribution centre management Question 11- Ass2,Sem1,Q11-2018 If a retailer in Soweto buys merchandise from a wholesaler to resell in his general store to final consumers, the retailer is the wholesaler’s … in a supply chain. [1] first-tier customer [2] first-tier supplier [3] second-tier customer [4] second-tier supplier Question 12 Ass2,Sem1,Q12-2018 If a general store retailer in Soweto buys merchandise from a wholesaler to resell to final consumers, the general store retailer’s customers are the wholesaler’s … in a supply chain. [1] first-tier customers [2] first-tier suppliers [3] second-tier customers [4] second-tier suppliersQuestion 13 Which assessment criteria will be most important in an organisation that uses a just-in time (JIT) system? 1. Delivery 2. Flexibility 3. Technology 4. Social responsibility Question 14 Which corporate social responsibility activity is related to total cost of ownership (TCO)? 1. Supplier development 2. Political emancipation 3. Corporate governance 4. Financial accountability Question 15 The more geographically dispersed the supply base, the more complex the supply chain. This will firstly result in ___________ which in turn could lead to increased stock levels and subsequent higher costs 1. Longer lead times 2. Shorter cycles 3. Increased prices 4. Improved quality Question 16 In a country like South Africa which is prone to currency fluctuations, the value of inventory is influenced by swings in the economy. Therefore, certain organisations may invest in anticipation inventories, which mainly relate to 1. Purchasing costs 2. Hedging against price uncertainties 3. Continuity in production and marketing 4. Protection against supply uncertaintiesQuestion 17 When a ________ system is used, replenishment occurs once an order “trigger” has been reached 1. Vendor-managed inventory 2. Materials requirement planning 3. Just-in –time 4. Periodic reorder Question 18 A limited number of supplier, offering homogenous or similar products, operate in a/an _______ market 1. Oligopolistic 2. Monopolistic 3. Purely competitive 4. Commercial Question 19 Which one of the following represents an internal factor of the purchasing and supply function that affects its performance? 1. Consumer markets 2. Supplier markets 3. Technological factors 4. Organizational policy Question 20 Identify an efficiency measure for the evaluation of performance 1. Purchasing research 2. Supplier relationship 3. Cost savings 4. Materials flowMAY/JUNE 2018 P1 Question 1 Ass1,Sem1,Q11-2019 The logistics function performed by the Woolworths distribution centre in Gauteng is called … [1] sourcing. [2] warehousing. [3] sales planning. [4] waste elimination. Question 2 The Woolworths distribution centre contributes directly to the reduced order cycle time of a Woolworths retail store by … [1] allowing delivery trucks to gather ordered stock items in one journey to the centre. [2] considering sustainability as the cornerstone of the facility design. [3] planning for extensions to the building for extra capacity in future. [4] sourcing sought after specialty products from international suppliers. Question 3 Identifying suitable suppliers to deliver quality products at the Gauteng distribution centre forms part of … [1] distribution. [2] product classification. [3] sourcing. [4] downstream supply chain activities. Question 4 Imperial Logistics is known as a … when Woolworths outsources deliveries to them from the Midrand distribution centre to Woolworths branches in malls. [1] first tier customer [2] third-party logistics provider [3] focal firm [4] second-tier supplier Question 5 An example of an upstream linkage in Woolworths’ supply chain would be … [1] Tetra Pak who provides packaging for transporting fruit juice without refrigeration. [2] Imperial Logistics delivering orders at Woolworths in Mall of Africa. [3] Woolworths’ employees receiving orders at local branches. [4] Woolworths’ financial services doing credit checks on credit card applicants.Question 6 The process of supply base optimization relates to__________ 1. Two supplying organisations buying regularly from each other 2. Eliminating marginal suppliers to limit the number of suppliers 3. Conducting a spend analysis during market research 4. Identifying supplier used by competing organisations Question 7 An organisation may decide to purchase not more than 40% of its production from an individual supplier. This kind of decision is focused on eliminating … [1] captive suppliers. [2] performance appraisal. [3] reciprocity agreement. [4] supplier development Question 8 Select one statement that reflects the example of critical items in the strategic sourcing matrix. [1] Expensive vehicle parts used by car dealers to assemble motorcars with no substitution. [2] Inexpensive cartridges used when printing documents in an organisation. [3] Fuel supply which is obtained in the Middle East with no substitute products. [4] Computer hardware used by lecturers in universities with standard specifications. Question 9 When using a Just-In-Time system, which one of the following documents would provide suppliers with a clear description of and specifications for an organisations specific need for components? 1. Kanbans 2. Purchasing requisitions 3. Materials lists 4. Invoices Question 10 A large clothing manufacturer purchases stationery for office use, which do not form part of clothing inventory items. According to the strategic sourcing matrix, stationery would typically be a … item for a clothing manufacturer. [1] leverage [2] critical [3] bottleneck [4] routineQuestion 11 Which one of the following statements describes lean manufacturing the best? [1] The most effective (and therefore least expensive) operation of all manufacturing processes. [2] The effective and efficient flow of information upstream and downstream in the supply chain. [3] Linking demand-driven customer sales to customer-driven demand. [4] Ensuring the lowest logistics cost in the supply chain, while conforming to or exceeding customer requirements. Question 12 Supply management can reduce lead times to the customer by reducing … [1] logistics costs from the point of origin to point of sales. [2] inventory levels. [3] cycle time from design to finished phase. [4] the number deliveries. Question 13 Which organizational function is mainly responsible for keeping a copy of the order form for the purpose of following-up and expediting an order, as well as to use as a control measure in the case of part deliveries of the order? [1] finance [2] receiving [3] inspection [4] purchasing Question 14 Which one of the following activities is typically performed when following up with the supplier after placing an order? [1] Assisting the supplier in obtaining an import permit [2] Bidding and negotiation [3] Checking for orders not received on the delivery date [4] Determining the origin of the need Question 15 The more geographically dispersed the supply base, the more complex the supply chain. This will firstly result in ___________ which in turn could lead to increased stock levels and subsequent higher costs 1. Longer lead times 2. Shorter cycles 3. Increased prices 4. Improved qualityQuestion 16 If a catering company finds that a contracted supplier of banting meals are not performing to their satisfaction and then decides to rather source the activity internally due to a lack of capable supplier of banting meals, it is called 1. Supplier evaluation 2. In sourcing 3. Captive suppliers 4. Sub-contracting Question 17 Buying from local suppliers usually has the following advantage: [1] Express orders can be accommodated. [2] Transportation costs are higher, since no delivery is usually possible by the local suppliers. [3] Lead times are longer due to local suppliers’ labour-intensive techniques. [4] Larger inventories are carried to provide in the unforeseen customer needs. Question 18 Suppliers whose past performance consistently meets and exceeds the required levels for quality are known as ... suppliers. [1] weighted average [2] approved [3] preferred [4] accredited Question 19 An example of striving towards environmental sustainability would be when an organisation … [1] replaces traditional boilers with modular heat pumps to have warm water more efficiently and costeffectively. [2] accepts economic accountability to ensure that resources are used in such a way that an organisations viability is continued. [3] accepts their social responsibility and provides nutritious food for the Feed-a-Child project. [4] realizes that happy workers are productive workers and provides fringe benefits to suit workers’ diverse compensation needs. Question 20 If suppliers of sustainable products do not keep to the agreed delivery dates, the organisation can be affected negatively. This type of risk would typically be called a(n) ... risk. [1] operational [2] external downside [3] incidental [4] lead time Question 21A straightforward relationship between the buyer and the seller where both parties exchange goods and services for payment is known as ... [1] a transactional relationship. [2] a collaborative relationship. [3] an alliance relationship. [4] supplier relationship management. Question 22 The process of strategic sourcing entails ... [1] selecting a purchasing team with knowledge about specific products and services to make purchases. [2] setting policy guidelines to enable the purchasing and supply function to make decisions more easily. [3] purchasing goods that were previously produced in-house from external suppliers. [4] buying packaging materials that can be more easily recycled or reused. Question 23 The following principle should be kept in mind when evaluating purchasing and supply performance: [1] It would be best to use the generic evaluation system that is available to evaluate purchasing and supply performance. [2] Quantitative measures give the best and most accurate indication of purchasing and supply performance. [3] As long as the benefits equal the costs, the evaluation system for evaluating purchasing and supply performance is effective. [4] A sound database with information on a wide spectrum of purchasing and supply activities is necessary to evaluate performance. Question 24 What is the main difference between supply chain and a value chain? [1] A supply chain is focused on the supply activity, whereas the value chain is focused on value-adding activities. [2] A supply chain has different upstream and downstream linkages, whereas the value chain has only downstream linkages. [3] A supply chain consists of the value-adding activities of a network of organisations, whereas a value chain consists of the value-adding activities of a specific organisation [4] A supply chain focuses its activities on satisfying the final consumer’s need, whereas a value chain coordinates the supply chain activities of different supply chain role-players. Question 25 When buying specialised equipment, the purchasing procedures might require that requisitions exceeding a predetermined amount be accompanied by two or three written quotations. In such cases, the … has the prerogative of selecting the supplier.[1] user department [2] purchasing official [3] specialised equipment specialist [4] financial function Question 26 Ass1,Sem2,Q8-2016 The usual procedure for selecting suppliers of standard items in relatively small quantities would be to choose the supplier … [1] after following a comprehensive procedure for supplier selection. [2] as recommended on the requisition by the user function. [3] which seems to be the best one from three or four suggested suppliers. [4] which submitted a complete quotation on time. Question 27 Ass1,Sem1,Q16-2018 When making the decision to in source or outsource, which one of the following options is most suitable when a buying organisation is more competent in performing an activity than a potential supplier? [1] Outsource to any external supplier that has the capability to perform the activity. [2] outsource a core activity even though it gives a competitive advantage. [3] Invest in disadvantaged suppliers to create their capability to perform the activity in-house at their premises. [4] Keep the activity in-house and invest to maintain and increase competitive advantage. Question 28 An example of external failure costs when a product or service does not comply to quality expectations is ______ 1. Reworking costs 2. Warranty claims 3. Scrap costs 4. Double inspections Question 29 When measuring supply management performance, supply proficiency could measure (a) ____________ whereas a supply efficiency could measure (b) ________________ 1. (a) negotiation ability, (b) promptness of delivery 2. (a) rejection ratio, (b) outstanding orders 3. (a) contracting the right suppliers; (b) supplier development4. (a) overall goal achievement (b) input-output ratio Question 30 How can transportation carriers assist in reducing retailers lead time? 1. By doing a delivery to retailers on relatively short notice 2. By using different sizes vehicles based on different retailers needs 3. By carefully screening their drivers before being appointed 4. By using idle space to transport goods to outlying neighborhood stores Question 31 When profit margins are tight, retailers can improve their rate of return by______ 1. Lowering their purchasing costs of goods to realize a higher profit margin 2. Lowering the selling price of their goods and having a wider variety of goods 3. Increasing transportation costs and saving on electricity expenses related to refrigeration 4. Increasing the carrying costs of goods and offering premium price products Question 32 Optimum inventory at retail outlets would imply a situation where 1. Transportation costs from warehouses are the lowest 2. Overall inventory costs are the lowest 3. Inventory holding costs equal inventory ordering costs 4. The stock-out costs of inventory are related to transportation costs Question 33 If retailers protect themselves against irregular supply due to public holidays and hold more items in store, such additional items are known as ____________ inventories 1. Unavoidable 2. Economic 3. Synchronized 4. BufferQuestion 34 Since retailers nowadays have less backroom to keep additional inventory, suppliers might have no option but to keep the items until they are ordered by the retailers. In a supply chain, retailers should consider the following when keeping items at supplier sites 1. Suppliers should not be asked to hold sufficient safety inventory for retailers based on ethical reasons 2. Even if the supplier is located near the premises of the retailer, it would still be best to hold inventory at the retailers premises 3. Inventory held by a supplier can have cost implication for the supplier, which will be transferred to the retailer 4. The best decision is to keep all inventory items at suppliers to lower overall costs in the supply chain Question 35 Which supplier assessment criteria will be most important in an organisation that uses a just-in time (JIT) system? 1. Delivery 2. Flexibility 3. Technology 4. Social responsibilityMAY/JUNE 2018 P2 Question 1 The concepts of logistics management and supply chain management are sometimes confused. Which statement is correct about the difference between these concepts? [1] Supply chain management involves activities related to the effective flow of material and information within the boundaries of a specific organisation. [2] The focus of logistics management is on managing relationships between different organisations across the entire supply chain. [3] Logistics is that part of the supply chain that manages the forward and reverse flow of goods and information from the point of origin to the point of consumption. [4] Supply chain management focuses on optimizing wealth for a single organisation by adding value. Question 2 Which one of the following can typically be categorized as an inbound logistics activity? [1] inspecting inventory [2] cross-docking [3] warehousing [4] customer service Question 3 Which one of the following can be categorized as both an inbound and an outbound logistics activity? [1] customer service [2] cross-docking [3] transportation [4] salvage and scrap Question 4 If a company adopts the philosophy of lean manufacturing, they would typically use the following statement in conversations: [1] “By keeping large inventories of raw materials, even if not used in manufacturing, we will be prepared to respond to customers’ orders when they come in.” [2] “If we have more work stations at the plant, we can employ more people in the manufacturing process.” [3] “By simplifying our work environment, we can reduce waste and keep our employees, equipment and workspace responsive to current needs.” [4] “We have invested large sums of capital in these advanced machines; therefore, we need to get maximum return on our investment before meeting changing demands.”Question 5 During the control task, the activity of evaluating the performance of the purchasing and supply function should be based on both the following critical dimensions: [1] tactical and strategic objectives [2] centralisation and decentralisation [3] quantitative and qualitative bases [4] cost reduction and income increase Question 6 A typical example of a qualitative performance indicator for evaluating purchasing and supply activities in the organisation is the … the purchasing and supply function. [1] negotiation ability of [2] promptness factor achieved by [3] rejection ratio of consignments by [4] outstanding orders of Question 7 A typical example of quantitative indicator for evaluating purchasing and supply activities in the organisation is 1. Benchmarking 2. Supplier credibility 3. Quality certification 4. Teambuilding Question 8 Since the purchasing and supply function is a support function, lateral purchasing and supply coordination is essential. This means that purchasing and supply … [1] has a harmonious relationship with other organisational functions. [2] uses horizontal thinking to solve purchasing and supply challenges. (not sure) [3] distributes an annual report to all the relevant internal and external stakeholders. [4] promotes a hybrid purchasing and supply organizational structure Question 9 The following principle should be kept in mind when evaluating purchasing and supply performance: [1] It would be best to use the generic evaluation system that is available to evaluate purchasing and supply performance. [2] Quantitative measures give the best and most accurate indication of purchasing and supply performance. [3] As long as the benefits equal the costs, the evaluation system for evaluating purchasing and supply performance is effective. [4] A sound database with information on a wide spectrum of purchasing and supply activities is necessary to evaluate performance.Question 10 When determining responsibilities in the purchasing and supply process, the … function has the prime responsibility to contact the supplier base about faulty consignments. [1] receiving [2] inspection [3] financial [4] purchasing Question 11 Expediting an order in the purchasing and supply context implies that the purchasing official firstly 1. Obtains advanced technology to speed up the process 2. Phones the supplier to discuss future relationships 3. Monitors the suppliers progress with the order 4. Suggests lean manufacturing as an efficient alternative Question 12 When buying specialised equipment, the purchasing procedures might require that requisitions exceeding a predetermined amount be accompanied by two or three written quotations. In such cases, the … has the prerogative of selecting the supplier. [1] user [2] purchasing official [3] specialised equipment specialist [4] financial function Question 13 When making the decision to in source or outsource, which one of the following options is most suitable when a buying organisation is more competent in performing an activity than a potential supplier? [1] Outsource to any external supplier that has the capability to perform the activity. [2] Outsource a core activity even though it gives a competitive advantage. [3] Invest in disadvantaged suppliers to create their capability to perform the activity in-house at their premises. [4] Keep the activity in-house and invest to maintain and increase competitive advantage. Question 14 … is when an organisation decides to partially transfer the activities of a function to a supplier outside while keeping the rest of the activities in-house. [1] Outsourcing [2] Insourcing [3] Co-sourcing[4] Back-sourcing Question 15 Reciprocity is a practice where … [1] suppliers, who are also customers of the organisation, enjoy preferential treatment. [2] the supplier is directly or indirectly owned by the purchasing organisation. [3] the buyer buys from a supplier that employs or is owned by a family member of the buyer. [4] a purchasing organisation buys more than half of the supplier’s production. Question 16 Which one of the following statements refers to the most likely decision of whether inventory will be held by suppliers on behalf of the buying organisation? 1. Suppliers should not be asked to hold sufficient safety inventory for the buying organisation based on ethical reasons 2. Even if the supplier is located near the premises of the buying organisation, it would still be best to hold inventory at the buying organisations premises 3. Inventory held by a supplier can have cost implications for the supplier, which will be transferred to the buying organisation 4. Only contingency inventory should be held by the supplier in the warehouses until needed by the buying organisation due to the insurance risks borne by the supplier Question 17 If a company leases computer equipment, which one of the following best describes risk transfer as a way to manage risks? 1. The financial consequences of losing computers are transferred to the insurance company 2. In the lease agreement, the risk of obsolescent computers is transferred to the owner of the computers 3. The risk of stolen computers is transferred to the board of directors 4. The risk of redundant computers can be transferred to the computer equipment manufacturer Question 18 According to the King III report, which level of the organisation is primarily responsible for the development and implementation of good ethics? [1] financial officials [2] shareholders [3] internal stakeholders [4] board of directorsQuestion 19 … costs arise from the warranty claims and product recalls of the Kindle Fire Tablet sold by Amazon.com. [1] Internal failure [2] Appraisal [3] External failure [4] Prevention Question 20 Amazon.com, an online retailer, uses a central computer in their warehouses, which records the location of goods and maps out routes for pickers of the ordered items. If the central computer should have insufficient capacity to handle all the required transactions, it would imply the following type of operational risk: [1] hardware risk [2] systems risk [3] policy risk [4] process risk Question 21 Storing 14.5 million tons of maize in silos at different cooperatives can hold some risks, of which … risk refers to the supply risk when maize prices fluctuate. [1] core business [2] external downside [3] incidental business [4] foreign exchange Question 22 ___________ risk is experienced when damaged roads due to flooding delay the delivery of maize to the silos 1. Lead time 2. External downside 3. Incidental business 4. Foreign exchangeQuestion 23 The risk of receiving sub-standard quality maize in the silos could proactively be managed by the following management technique: [1] ABC inventory management [2] supplier certification [3] target costing [4] buffer inventory Question 24 As a general rule of thumb, small-scale maize millers should realize that the poor quality of incoming maize grain from farmers could cause approximately …% of the problems and related costs associated with the maize meal products reaching the final consumer. [1] 20 [2] 40 [3] 75 [4] 95 Question 25 The quality of service that internal suppliers provide to internal customers is equally important. In terms of the government’s support programmes to help the small-scale millers as discussed in the case study, the … would most probably be the internal supplier/s of maize grain to small millers. [1] government purchasers of maize grain [2] sellers of milling equipment [3] rural maize users [4] Department of Trade and Industry Question 26 One of the cost elements that small-scale maize millers should consider is direct material costs, which in this case would refer to the … [1] cost of the cleaning materials for the milling machines. [2] electricity cost for operating the milling machines. [3] cost of adjusting the coarseness of the milled maize. [4] cost of the maize grain used in the milling processQuestion 27 An example of millers overhead cost will be 1. Milling machines 2. Maize bags 3. Electricity 4. Bulk maize Question 28 The decision-makers in the Department of Trade and Industry most probably assumed that the miller’s learning curve would change over time to decrease the labour cost component of milled maize. In this case, an improved learning curve would imply that … [1] the more small-scale millers attend training sessions before being selected for the programme, the more skilled they will be during the milling process. [2] the more skilled the small-scale millers become in actually handling the milling equipment, the more bags of milled maize will be produced. [3] maize millers’ labour skills can be improved indefinitely through the repeated handling of milling equipment. [4] skilled workers who are unwilling to work or often go on strike should be replaced by advanced milling equipment. Question 29 As a rule of thumb. The millers should learn that the inventory holding costs of produced maize usually represent on average ________ % of the amount invested in maize inventory 1. 10 2. 20 3. 50 4. 75 Question 30 Optimum maize inventory for millers would imply a situation where … [1] maize transportation costs from rural areas are the lowest. [2] overall maize inventory costs are the lowest. [3] inventory holding costs equals inventory ordering costs. [4] the stock-out costs of maize inventory are related to transportation costs.Question 31 A typical example of multi-purpose capital equipment purchased by millers would be … [1] forklifts for moving bags of maize meal in storage. [2] milling machines for grinding maize grain. [3] stitching machines for closing maize bags. [4] specialised maize milling plants to produce maize meal. Question 32 When contracting a repair expert to fix a milling machine, there is no lead time in repair service delivery. This refers to the following characteristic of services: [1] heterogeneity [2] simultaneity [3] perishability [4] intangibility Question 33 If a machine repairman arrives at the plant, only to realize that he needs other tools and more hands to repair the machine at the specific time, the subsequent non-rendering of the service would be due to the _________ of services 1. Perishability 2. Simultaneity 3. Intangibility 4. Heterogeneity Question 34 When the Department of Trade and Industry buys transportation services for delivering maize to the 24 small-scale millers, they should ensure that the potential transportation companies are able to deliver the maize at the geographically dispersed milling plants. In this case _______________ is a key variable in transport decision making 1. Reliability 2. Capability 3. Accessibility 4. SpeedQuestion 35- Distinguishing between ethical and unethical conduct is difficult. Which ONE of the following lines of thinking would be ethical when allocating a budget to a province to train millers for a six-month period in commercial milling? [1] My brother-in-law has a training facility in Kimberley which we could easily use for our training. By doing this, both my family and the DTI would benefit. [2] It would make financial sense to use a written quotation from one of the training companies to help a competing training company to quote the lowest price for the training. [3] Since bribes are common practice in other African countries, we can do the same when awarding contracts to trainers in the Northern Cape Province. [4] Loyalty has a price; therefore, even if my career is at stake, I have to blow the whistle on my superior who awarded the training contract to his best friend OCTOBER/NOVEMBER 2018Question 1 When an organisation has a short term (one year) need for particular capital equipment, purchasing and supply will most probably recommend that 1. Used equipment be bought 2. Equipment be leased by means of a financial lease 3. Equipment be leased by means of an operating lease 4. Equipment be bought on hired purchase Question 2 Which one of the following statements represents a misconception held by purchasing and supply regarding stock-out situations? 1. Calculating stock-out costs is complicated 2. Carrying large inventories will decrease the stock-out costs 3. Customers adapt easily and stock-outs seldom effect them 4. Stock-outs might necessitate reconfiguring the production plant Question 3 A periodic reorder system is most suitable for the following inventory items 1. A items 2. C items 3. Buffer stock items 4. Low demand items Question 4 These items in the ABC analysis need careful consideration since they are responsible for the major part of the inventory investment 1. A items 2. B items 3. C items 4. X items Question 5 Purchasing and supply management should consider the following when calculating ordering costs1. Total order costs will be reduced if larger, single orders are placed 2. Ordering costs are on average between 30% and 35% of the investment in inventory 3. The individual ordering cost components refer to capital costs, storage costs and risk costs 4. Ordering costs and carrying costs are mutually exclusive Question 6 Inventory carrying costs are on average between ______ % and _________% of the investment in inventory 1. 20, 50 2. 20, 80 3. 25, 35 4. 10, 50 Question 7 Which one of the following refers to a response-based technique widely used in independent demand management 1. Continuous replenishment 2. Materials requirement planning 3. Enterprise resource planning 4. Just-in-time Question 8 Which one of the following can be viewed as the organisations consideration of, and response to, issues beyond its narrow economy, technical and legal requirements? 1. Risk management 2. Corporate social responsibility 3. Supplier selection 4. Environmental management Question 9 Which one of the following statements refers to how supplier selection should be made? 1. The decision should be based on quantifiable factors such as price and delivery, ignoring social and political issues 2. The decision should always be preceded by a formal supplier evaluation and rating 3. The decision is based on uniform set of weighted criteria that can be applied to every purchase 4. The decision can be made through the evaluation of criteria and probabilities of success and failureQuestion 10 The progression of buyer-supplier relationships usually is 1. From partnership to transaction to alliance 2. From adversarial to alliance to partnership 3. From arms length to alliance to transactional 4. From transactional to partnership to alliance Question 11 When classifying a supplier as a certified supplier 1. Such a supplier may experience added costs and few benefits 2. The buyer may benefit from lower costs and improved quality 3. Both the supplier and buyer lose marketing value 4. The relationship between the buyer may face termination Question 12 The first step in strategic sourcing process would be to 1. Compile a strategic plan and assemble a multifunctional team 2. Classify products according to the strategic sourcing matrix 3. Strategically source potential suppliers offering the best price 4. Strategically manage supplier relationships Question 13 The basis for dividing total spending into categories in the strategic sourcing matrix is the 1. Risks involved in supplying the commodity and the amount spent on the commodity 2. Complexity of the commodity and the number of suppliers 3. Cost of bottleneck commodity items compared to leverage commodity items 4. Purchasing price of commodity items and the cost involved in sourcing the commodity items Question 14Several copies of the ________ should be distributed to various organisational functions due to this document being a source document for a series of purchasing and supply activities 1. Purchasing requisition 2. Materials list 3. Kanban 4. Order form Question 15 Reciprocity is a practice where … [1] suppliers, who are also customers of the organisation, enjoy preferential treatment. [2] the supplier is directly or indirectly owned by the purchasing organisation. [3] the buyer buys from a supplier that employs or is owned by a family member of the buyer. [4] a purchasing organisation buys more than half of the supplier’s production. Question 16 In terms of the purchasing process, the activity of _______ should fall within the authority and responsibility of the purchasing function only, mainly because such an activity is a legally binding step. 1. Describing requirements 2. Selecting suppliers 3. Bidding and negotiation 4. Placing the order Question 17 What is the most important activity performed during the “closing the order”? 1. Paying the supplier 2. Filling purchasing order documents 3. Forming partnership with the preferred supplier 4. Issuing an invoice to the supplier Question 18 Which one of the following objectives relates to purchasing and supply activities performed at operational level? 1. Analyse inventory 2. Investigate alternative control systems 3. Develop existing suppliers 4. Ensure availability of purchased requirementsQuestion 19 The purchasing and supply management task of ______ is essentially the creation of a structure in which tasks can be assigned and to which resources can be allocated 1. Planning 2. Organizing 3. Motivating 4. Controlling Question 20 Which one of the following can be regarded as the coordination task within the purchasing and supply function? 1. Open communication, formulating strategic alliances, integrating systems and motivating suppliers to perform better 2. Purchasing and supply staff working in teams and being led by cross-functional teams 3. Comparing purchasing and supply performance between various divisions within an organisation 4. Implementing and controlling the efficient and effective forward and reverse flow and storage of goods Question 21 The action of comparing purchasing and supply performance between various divisions or between various organisations is known as.... 1. Gaining commodity knowledge 2. Setting budget objectives 3. Performing benchmarking 4. Following historical approach Question 22 Which one of the following principles should be kept in mind when evaluating purchasing and supply performance? 1. It would be best to use the generic evaluation system that is available to evaluate purchasing and supply performance 2. Quantitative measures give the best and most accurate indication of purchasing and supply performance 3. As long as the benefits equal the costs, the evaluation system for evaluating purchasing and supply performance is effective 4. A sound database with information on a wide spectrum of purchasing and supply activities is necessary to evaluate performance Question 23In the progression of supply chain management, it is becoming increasingly _____________ orientated 1. Cost 2. Logistics 3. Market 4. Supplier (not sure) Question 24 During the control task, the activity of evaluating the performance of the purchasing and supply function should be based on both the following critical dimensions: [1] tactical and strategic objectives [2] centralisation and decentralisation [3] quantitative and qualitative bases [4] cost reduction and income increase Question 25 Which one of the following best described a situation where the purchasing function buys more than half of a suppliers productions? 1. Unreliable suppliers 2. Developed suppliers 3. Captive suppliers 4. Reciprocal suppliers Question 26 Expediting an order in the purchasing and supply context implies that the purchasing official firstly 1. Obtains advanced technology to speed up the process 2. Phones the supplier to save time to discuss future relationships 3. Monitors the suppliers progress with the order 4. Suggests lean manufacturing as a stream-lined process Question 27Non-cost factors should be considered in the outsourcing decision. A non-cost factor, such as _________ would compel the organization to perform an activity internally when style plays and unusually important role and patents do not provide sufficient protection against emulation 1. Quality control 2. Workforce stability 3. Design secrecy (not sure) 4. Market share Question 28 … is when an organisation decides to partially transfer the activities of a function to a supplier outside while keeping the rest of the activities in-house. [1] Outsourcing [2] Insourcing [3] Co-sourcing [4] Back-sourcing Question 29 An example of internal service quality would be the following 1. The purchasing team has an obligation towards the different organizational departments to contract the most cost-effective supplier of requirements 2. The supplier is awarded the contract based on political connections and not by following regular tender processes 3. The supplier is able to provide sufficient items at the predetermined price 4. The buyer cancels its contract with the supplier due to tax certificates not issued by South African Revenue Services (SARS) Question 30 If cost-efficiency is not considered when awarding a contract and an unfair price for the purchased items is determined it means that 1. The lowest price that could ensure the continuous supply of product is not negotiated 2. The price asked by the supplier is determined by active competing suppliers in a competitive market 3. The price of items is in reasonable proportion to the total manufacturing costs 4. The price determined for items is reasonable to both the buyer and the supplier Question 31 If a township retailer buys merchandise from a wholesale to resell in his general store the retailer represents the ______ of the wholesaler in a supply chain1. First-tier customer 2. First-tier supplier 3. Second-tier customer 4. Second-tier supplier Question 32 If a general store retailer in Soweto buys merchandise from a wholesaler to resell to final consumers, the general store retailer’s customers are the wholesaler’s … in a supply chain. [1] first-tier customers [2] first-tier suppliers [3] second-tier customers [4] second-tier suppliers Question 33 The value chain comprises of primary and support activities that can lead to a competitive advantage for an organisation when they are configured properly. Which one of the following would be an example of a primary activity in the value chain? [1] Human resource management [2] Technological development [3] Purchasing [4] Outbound logistics Question 34 Third-party logistics services (3PLs) are for-hire outside agents to which all or much of an organisation’s logistics activities can be outsourced. Which one of the following would be considered a logistics activity that a 3PL could provide? [1] Labelling [2] Manufacturing [3] Technological development [4] Purchasing Question 35 The linkages referring to the two-way movement and coordination between the different flows in the supply chain implies that ... [1] the two flows of goods and information move in the direction towards the end customer. [2] information, money and goods can also flow in a reverse direction in the supply chain. [3] both inbound and outbound activities on the two sides of the supply chain should be coordinated. [4] goods can flow from first-tier customers to second-tier customers. MAY/JUNE 2019Question 1 Which statement is most correct when considering the scope of the concepts value chain and supply chain management? 1. Both concepts relate only to internal organizational functions 2. Both concepts encompass both internal and external organization functions 3. The value chain is demarcated by organization boundaries, while supply chain management also includes external parties 4. Supply chain management is demarcated by organizational boundaries, while the value chain also includes external parties Question 2 Which one of the following describes what asset turnover rate entails? [1] A measure of how efficiently assets have been employed [2] Total income from sales minus costs [3] A measure of the profit percentage out of each rand’s turnover [4] Profit margin multiplied by turnover rate of assets Question 3 Assume a start-up organization will source from many suppliers countrywide, but will exclusively market their products in the Western Cape, with primary focus on the urban hub of Cape Town. Which one of the following would rationalize the decision on the purchasing and supply structure? 1. A decentralized structure would be preferred to ensure that economies of scale are achieved, while centralization would result in a loss of economies of scale 2. Decentralization generally reduces negotiating power, whereas centralization allows greater negotiating power 3. Centralization will result in slow response times to regional outlets, while decentralization ensures faster response times 4. Centralization often results in a duplication of staff and facilities, while decentralization will ensure a leaner organizational structure Question 4 At an operational level, _____________ planning entails forecasting marketing investigations and analysis and interpreting master production schedules 1. Supply 2. Purchasing and supply program 3. Materials requirements 4. Extraordinary projectQuestion 5 Which one of the following is characteristic of a successful purchasing and supply team? 1. Create permanent cross-functional teams 2. Create temporary cross-functional teams 3. Align team functions according to specialization 4. Team works independently from senior executive support Question 6 Shirley, your local purchasing, and supply administrator, informs you that even though she is still able to order printing paper and printer toner from a preferred local store, she has to, from now onwards, put in a request to head office to replace broken printers. What is the most likely type of purchasing and supply organizational structure in your organization? 1. Centralized (general knowledge) 2. Decentralized 3. Combined 4. Matrix Question 7 A situation where an organisation decides to engage one of its existing suppliers for the purchase of a different product can best be described as a … situation. [1] new task [2] routine rebuy [3] modified rebuy [4] straight rebuy Question 8 In the bidding and negotiation step of the purchasing and supply process, which document is used for more complex requirements in which price is only one of several key decision variables? 1. Request for information (RFI) 2. Request for quotation (RFQ) 3. Request for proposal (RFP) 4. Request for bid (RFB) Question 9The following are bar code forms consisting of labels with information about from whom the item is purchased and are mainly used for the repeat purchases of standard inventory requirements. 1. Kanbans 2. Stock checks 3. Reorder point systems 4. Travelling requisitions Question 10 Which one of the following options describes the steps followed during the transition phase of the outsourcing process? 1. Negotiate a contract, execute the project and transfer activities to the contractor 2. Analyze competence, assess the situation, and approve the project 3. Assess the situation, approve the project, and negotiate the contract 4. Managing relationships with the contractor and (or) terminate the contract Question 11 A captive supplier is a supplier that … 1. sells more than half its total production to one organisation. 2. sells to an organisation that it also buys from. 3. sells less than half its total production to one organisation. 4. produces more than 50% of a buying organisation’s supply. Question 12- Which one of the following circumstances will favor outsourcing services? 1. When the organisation’s quality requirements are too stringent to be met. 2. When capacity is available for use. 3. When product demand is relatively small and only temporary. 4. When no or only a few reliable suppliers exist Questions 11 to 20 are based on the case study “Woolworths’ sustainable Distribution Centre” on pp. 205-206 of your prescribed book, excerpts from websites provided in the questions below and the list of definitions provided (see Addendum D) in Tutorial Letter 101. Read the case attentively before answering the questions. Question 13In the strategic sourcing matrix, a product with low risk and complexity on which only a small amount is spent can be classified as which type of product? 1. Bottleneck 2. Critical 3. Routine 4. Leverage Question 14 Your organization is the only supplier of processor chips for the iPhone. It would take another company two years to ramp up production sufficiently to replace you as supplier. From Apple Inc’s point of view, your organization supplies them with a _________ item 1. Bottleneck 2. Routine 3. Critical 4. Leverage Question 15 One of your suppliers phones you and suggests that he will buy a thousand units of the widget you produce for every R1million your organization spends on products from his organization. He further promises to give you expedited supply lead times. Your supplier is suggesting a supply strategy known as; 5. Supply base optimization (pg75) 6. Reciprocity 7. Environmental protection 8. Captive suppliers Question 16 The following two actions take place during the assessment phase of the supplier selection process 1. Choosing the supplier assessment method and pre-screening to reject unsuitable suppliers 2. Selecting the supplier and conducting ongoing measurement of supplier performance 3. Conducting research on potentially suitable suppliers and choosing the supplier assessment method (pg91)-incorrect 4. Conducting ongoing measurement of supplier performance and supplier accreditation Question 17Approved suppliers are suppliers who have ____________ 1. Shown that their performance consistently meets and exceeds the required levels of criteria, such as quality, cost reduction, delivery and service 2. Been presented with certification that can be used in their advertising or correspondence 3. Been identified as potential suppliers during the exploratory phase of the supplier selection process 4. Met the levels for criteria, such as quality, cost reduction, delivery and service of the supplier selection process Question 18 Which one of the following risk management approaches means that the consequences of loss will be borne by the party exposed to the chance of loss? 1. Transfer (pg 113)-incorrect 2. Reduction 3. Assumption 4. Avoidance Question 19 Which one of the following options is a reason why managers are more concerned about the ethical conduct of purchasing and supply than in any other organizational function? 1. Purchasers have no say in terms of which supplier will receive an order. 2. Purchasers have power over large sums of money. 3. Purchasers’ objectivity and rational thinking will always conquer unethical conduct. 4. Purchasers are less exposed to temptations than other organizational members. Question 20 The following risk includes all the activities, decisions and events that impact directly on the operating profit of an organisation 1. Operational risk 2. Incidental business risk 3. Core business risk 4. External downside risk Question 21 Which one of the following statements regarding the standardization of products is correct? 1. Standardization is often employed by newly established businesses, because less inventory is generally required for standardised products. 2. Standardization can only be implemented once the organizations’ employees have reached a high level of technical capability. 3. Standardization should be employed when the organisation is not experiencing any price competition in order to take advantage higher profits by lowering production costs, while raising product prices.4. Standardization is mostly employed when market demand for a product is certain, because standardised manufacturing tends to be costlier than non-standard manufacturing. Question 22 You are part of a supply chain transformation team looking to implement six sigma practices within your organisation. The team is looking to establish a so-called DMAIC improvement cycle to improve purchasing performance. One of the team members has built up a database of performance data and wants the team to immediately start with data analysis to determine reasons for deviation. What task should however precede data analysis? 1. Implementation of industry best practice processes 2. Introduction of standardised procedures 3. Development of measurement instruments to determine baseline 4. Define improvement goals Question 23 Mercedes-Benz vehicles are known for their superior performing engines, state of the art interiors and the incorporation of innovative technologies, which is known as high … 1. prevention cost. 2. design quality. 3. conformance quality. 4. appraisal costs. Question 24 Toyota is generally known to be a manufacturer of highly reliable vehicles which are products of the standard Toyota Production System. A core focus is on streamlining production processes to achieve highly consistent operations and eliminate errors and wastage, which can best be described as high ... 1. design quality. 2. conformance quality. 3. appraisal costs. 4. external failure costs. Question 25 Which one of the following statements regarding break even analysis is true? 1. The total fixed cost increases at the total volume and total revenue increases 2. Total variable cost decreases as volume increases due to economies of learning 3. The breakeven point is where total revenue meets the combined point of total variable plus total fixed cost (pg157)-incorrect 4. The breakeven point is where total revenue meets total fixed costQuestion 26 Which one of the following analysis tools is used when evaluating leverage purchases with a primary focus on cost? 1. Target cost analysis 2. Total cost modeling (pg152) graph 3. TCO analysis 4. Life-cycle costing Question 27 Which one of the following scenarios described an oligopolistic market form? 1. A market dominated by a single large seller 2. A market with many sellers and many buyers 3. A market with many sellers and few buyers 4. A market dominated by a small number of large sellers Question 28 A supplier has developed an innovative consumable product that will drastically increase overall quality of output if employed within manufacturing processes. The technology seems easy to imitate and industry players agree that this supplier is following a market skimming model at this stage. What impact will such a supplier pricing strategy have on the contract term between a buyer and this supplier? 1. A long-term contract should be entered into to secure supply, as availability of supply will become limited over time when interest in the new product fades 2. A mid-term contract is ideal for this scenario as it is uncertain whether product prices will increase or decrease over time 3. A long-term contract should be entered into since product prices will exponentially increase as time passes 4. A short-term contract should be entered into, because the supplier plans to capitalize on his early mover advantage with high product prices, after which prices will likely drop. Question 29 Identify the market-driven pricing model strategy where the supplier analyses the market to find the volume of sales combined with a specific price per unit that will ensure maximum profit? 1. Market volume price level model 2. Revenue pricing model 3. Price volume model 4. Market skimming modelQuestion 30 One drawback of the periodic reorder system is that it typically leads to large inventories. For which one of the following products would this “drawback” be admissible? 1. Machine lubricant that is sporadically consumed in small quantities 2. Corn maize that is used as the primary input for cereal 3. Computer microchips that is used in laptop computers 4. An engine part that is manufactured to engineered specifications Question 31 Ford Motor Company can compete internationally, since the landscape of doing business at a global scale changed significantly when … 1. the localization of trade within countries and trade-areas was established. 2. longer product life cycles were adopted. 3. customers became less demanding of organisations. 4. massive advances in information technology happened. Question 32 When Ford developed an initiative called “Order to Delivery”, they knew that a decrease in … might lead to an increase in their sales figures. 1. customer lead time 2. return on investment 3. flexibility 4. innovation Question 33 As part of re-engineering at Ford, they had to restructure their network of suppliers. Based on the case study, which supplier assessment criteria is the most important one when selecting suppliers at Ford? 1. Financial status 2. Computer systems 3. Quality 4. Environmental awareness Question 34 If Ford rejects a delivery from one of its rubber suppliers, which function at Ford is responsible for all negotiations with suppliers over faulty rubber consignments and rejections? 1. The Just-in-Time management team 2. The purchasing and supply function 3. Supervisors on the tyre manufacturing line 4. The finance functionQuestion 35 In the months before re-engineering at Ford, the head of purchasing and supply management was probably asked to quantify the financial benefit of this division for the Ford Motor Company. Since purchasing and supply affects the elements of Ford’s return on investment (ROI), which of the following figures for the previous five financial years were most probably requested from Ford’s finance department to do the calculation? 1. sales value, total cost, value of fixed assets, value of current assets 2. sales volume, total cost, value of fixed assets, value of current assets 3. total returns, value of fixed assets, value of current assets 4. sales value, purchasing cost, supply cost, total assets OCTOBER/NOVEMBER 2019 Questions 1 to 10 are based on the case study “Managing supply chains in South Africa” on pp 2 to 3Question 1 In a typical supply chain, as described in the case study, an upstream linkage connected to a retailer will be a(n) 1. Supplier 2. End-consumer 3. Focal firm 4. Fast-moving consumer good Question 2 The case study mentions that retailers should never stop looking for ways to reduce lead times. How can transportation carriers assist in reducing retailers lead time? 1. By doing delivery to trailers on relatively short notice 2. By using different sizes vehicles based on different retailers needs 3. By carefully screening their drivers before being appointed 4. By using idle space to transport goods to outlying neighboring stores Question 3 Since profit margins are tight (as mentioned in the case study), retailers can improve their rate of return by.. 1. Lowering their purchasing costs of goods to realised a higher profit margin 2. Lowering the selling price of their goods and having a wider variety of goods 3. Increasing transportation costs and saving on electricity expenses 4. Increasing the carrying costs of goods and offering premium-priced products Question 4 Which phrase from the case study implies that organisations are doing demand-driven planning? 1. “Carriers have to make more frequent deliveries” 2. “Strikes are a prime example that illustrates the need for contingency planning” 3. “Fuel costs and electricity rates are increasing continuously” 4. “Retailers cannot only plan for when things go right” Question 5 Optimum inventory at retail outlets would imply a situation where.. 1. Transportation costs from warehouses are the lowest 2. Overall inventory costs are the lowest 3. Inventory holding costs equal inventory ordering costs 4. The stock-out costs of inventory are related to transportation costs Question 6If retailers protect themselves against irregular supply due to public holidays and hold more items in store, such additional items are known as ____________ inventories 1. Unavoidable 2. Economic 3. Synchronized 4. Buffer Question 7 Which one of the following would be an example of a service purchased by retailers? 1. Quality-approved vehicles 2. Specialised check-our facilities in store 3. Temporary carriers contracted during strikes 4. Special trolleys for moving odd-sized inventory items Question 8 Since retailers have less backroom to keep additional inventory, suppliers might have no option but to keep the items at their premises when ordered by the retailers. In a supply chain, retailers should consider the following when keeping items at supplier’s premises 1. Suppliers should not be asked to hold enough safety inventory for retailers, based on ethical reasons 2. Even if the suppliers is located near the premises of the retailer, it would still be best to hold inventory at the retailers premises 3. Inventory held by a supplier can have cost implication for the supplier, which will be transferred to the retailer 4. The best decision is to keep all inventory items at supplier to lower overall costs Question 9 In the case study, the concepts of both logistics management and supply chain management are mentioned. Which statement is correct about the different between these two concepts? 1. Supply chain management involves activities related to the effective flow of material and information within the boundaries of a specific organisation 2. The focus of logistics management is on managing relationships between different organisations across the entire supply chain 3. Logistics is that part of the supply chain that manages the forward and reverse flows of goods and information from the point of origin to the point of consumption 4. Supply chain management focuses on optimizing wealth for a single organisation by adding value. Question 10 Which one of the following refers to a logistics activity in the case study1. Formulating contingency plans 2. Preparing for strikes 3. Managing transportation 4. Cutting electricity Question 11 Which of the following relates to supply base optimization as a critical activity in supply policy and strategy formulation? 1. Two supplying organisation engage in buying from each other 2. A decision is made on the number of suppliers to maintain 3. A spend analysis is conducted during market research 4. The supplier identification process is followed Question 12 An organisation may decide to purchase not more than 40% of its production from an individual supplier. This kind of decision is focused on eliminating 1. Captive suppliers 2. Performance appraisal 3. Reciprocity agreement 4. Supplier development Question 13 Select the statement that reflects an example of critical items in the strategic sourcing matrix 1. Expensive vehicle parts with no substitution used by car manufacturers to assemble motorcars 2. Inexpensive cartridges used when printing documents in an organisation 3. Fuel supply which is obtained in the middle east with no substitute products 4. Computer hardware with standard specification used by university lecturers Question 14 All-rounder Automobiles services and repairs vehicles. They have decided to start manufacturing minor components, such as side mirrors and bumpers. If they are using the Just-In-Time system, which one of the following documents would provide All-rounder Automobiles suppliers with a clear description of and specification for their specific need for reflective glass and plastic moulds? 1. Kanbans 2. Purchasing requisitions 3. Materials lists 4. Invoices Question 15, which do not form part of clothing inventory items. According to the strategic sourcing matrix, stationery would typically be a ____ item for a clothing manufacturer 1. Leverage item 2. Critical item 3. Bottleneck item 4. Routine item Question 16 Which one of the following statements describes lean manufacturing best? 1. The most effective (and therefore least expensive ) operation of all manufacturing processes 2. The effective and efficient flow of information upstream and downstream in the manufacturing supply chain 3. Linking demand-driven customer sales to customer-driven demand in manufacturing 4. Ensuring the lowest logistics cost in the manufacturing supply chain, while conforming to or exceeding customer requirements Question 17 Which organisation function is mainly responsible for keeping a copy of the order form for the purpose of following-up and expediting an order, as well as to use a control measure in the case of part deliveries of the order? 1. Finance 2. Receiving 3. Inspection 4. Purchasing Question 18 Which one of the following activities is typically performed when following up with the supplier after placing an order? 1. Assisting the supplier in obtaining an import permit 2. Bidding and negotiation 3. Checking for orders not received on the delivery date 4. Determining the origin of the need Question 19 In general, buying from local suppliers usually has the following advantage 1. Express orders can be accommodated 2. Transportation costs are often higher, due to restricted delivery options for local suppliers3. Lead times are longer due to local suppliers labour-intensive techniques 4. Larger inventories are carried to provide in the unforeseen customer needs Question 20 Suppliers that have shown that their past performance consistently meets and exceeds the required levels for quality are known as ________ suppliers 1. Weighted average 2. Approved 3. Preferred 4. Accredited Question 21 An example of striving towards environmental sustainability would be when an organisation 1. Replaces traditional boilers with solar powered pumps to have warm water 2. Accepts economic accountability to ensure that resources are used in such a way that and organisations viability is continued 3. Accepts their social responsibility and provides nutritious food for the Feed-a-Child project 4. Realizes that happy workers are productive workers and provides fringe benefits to suit workers diverse compensation needs. 5. Question 22 The following purchasing and supply risk refers to the exposure of an organisation to losses resulting from internal failures people, processes and systems 1. Operational 2. Liquidity 3. Incidental 4. Lead time Question 23 A straight-forward relationship between the buyer and the seller where both parties exchange goods and services for payment is known as ____________1. A transactional relationship 2. A collaborative relationship 3. An alliance relationship 4. Supplier relationship management Question 24 The process of strategic sourcing entails 1. Selecting a knowledgeable purchasing team for purchasing specific products 2. Setting policy guidelines for the purchasing and supply function for easy decision-making 3. Purchasing goods that were previously produced in house from external supplier 4. Buying packaging materials that can be recycled or reused more easily Question 25 The following principle should be kept in mind when evaluating purchasing and supply performance 1. It would be best to use the generic evaluation system that is available to evaluate purchasing and supply performance 2. Quantitative measures give the best and most accurate indication of purchasing and supply performance 3. As long as the benefits equal the costs, the evaluation system for evaluating purchasing and supply performance is effective 4. A sound database with information on a wide spectrum of purchasing and supply activities is necessary to evaluate performance Question 26 Which supplier assessment criterion is priority criterion if a manufacturer demands that the suppliers is ISO 14001 accredited? 1. Quality 2. Price 3. Geographic location 4. Flexibility Question 27If a supplier adhere to “supply chain management” as supplier selection criterion, such a supplier would _________ in its supply chain 1. Foster short term relationships 2. Reject lean manufacturing 3. Only use the least costly transportation (The effectiveness of the supplier’s transport and distribution) 4. Adopt flexible practices Question 28 Which supplier assessment criterion would be the most important if a boutique owner prefers identifying a courier closest to the boutique at the time when a delivery service is required? 1. Ethics 2. Cost structure 3. Geographic location 4. Quality accreditation Question 29 Should an organisation decide on a preferred courier service provided and the courier prefer to be the same good partner as they have been to other businesses worldwide, the relationship between the organisation and the courier could be described as 1. Arms length 2. Price focused 3. Techno-savvy 4. cooperative Question 30 What is the main difference between supply chain and a value chain? 1. A supply chain is focused on the supply activity, whereas the value chain is focused on value-adding activities 2. A supply chain has different upstream and downstream linkages, whereas the value chain only has downstream linkages 3. A supply chain consists of the value-adding activities of a network of organisations, whereas a value chain consists of the value-adding activities of a specific organisation 4. A supply chain focuses its activities on satisfying the final consumers need, whereas a value chain coordinates the supply chain activities of different supply chain role-players Question 31 The linkages referring to the two-way movement coordination between the different flows in the supply chain implies that1. The two flows of goods and information move in the direction towards the end customer 2. Information, money and goods can also flow in a reverse direction in the supply chain 3. Both inbound and outbound activities on the two sides of the supply chain should be coordinated 4. Goods can flow from first-tire customer to second-tier customers Question 32 Third-party logistics services (3PLs) are for-hire , outside agents to which all or much of an organisations logistics activities can be outsourced. Which one of the following would be considered a logistics activity that a 3PL could provide? 1. Labeling 2. Manufacturing 3. Technological development 4. Purchasing Question 33 You, as a buyer, find a tender document on your desk one morning. This confirms that your purchasing and supply department has progressed to the _______ step in the process for kitting out the new testing lab that you requested 1. Product specification 2. Bidding and negotiation 3. Order placement 4. Invoice analysis Question 34 Which one of the following options is a reason why managers are more concerned about the ethical conduct of the purchasing and supply function than in any other organizational function? 1. Purchasers have no say in terms of which supplier will receive an order 2. Purchasers have power over large sums of money 3. Purchasers objectivity will always conquer unethical conduct 4. Purchasers are less exposed to temptations than other employees Question 35 Which one of the following tools can be used in the critical projects quadrant of the purchasing matrix to support strategic cost management? 1. Landed price 2. Open books 3. Target cost analysis 4. Life cycle costing [Show More]

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