Question 1

Which of the following best explains the concept of 'supply chain'?

Accepted Answer

A)  A series of companies (links) in which the consecutive stages of production of an economic product take place, from primary producer to final consumer. 
B)  The way in which finished products are distributed by the company to its customers. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company. 
A)  A series of companies (links) in which the consecutive stages of production of an economic product take place, from primary producer to final consumer. 
B)  The way in which finished products are distributed by the company to its customers. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company. A

Question 2

Which of the following best explains 'Kanban'?

Accepted Answer

A)  A form of JIT based upon fixed volume lot delivery. 
B)  The exact same as just-in-time (JIT). 
C)  Where the ordering costs per unit is lowest. 
D)  A form of JIT based upon fixed volume lot delivery. When a lot is used, the kanban (card) will be sent to the supplier as a signal to replenish that lot 
A)  A form of JIT based upon fixed volume lot delivery. 
B)  The exact same as just-in-time (JIT). 
C)  Where the ordering costs per unit is lowest. 
D)  A form of JIT based upon fixed volume lot delivery. When a lot is used, the kanban (card) will be sent to the supplier as a signal to replenish that lot D

Question 3

Which of the following is an aspiration of supply chain management?

Accepted Answer

A)  Achieving the highest delivery reliability. 
B)  Achieving the best order fulfilment. 
C)  Achieving the shortest delivery time. 
D)  Relationship management between the company and its suppliers as well as its customers. 
A)  Achieving the highest delivery reliability. 
B)  Achieving the best order fulfilment. 
C)  Achieving the shortest delivery time. 
D)  Relationship management between the company and its suppliers as well as its customers. D

Question 4

Which of the following is not a feature of 'make to stock (MTS)'?

Accepted Answer

A)  Finished products are kept in stock at the end of the production process. 
B)  Finished products are distributed to various distribution points. 
C)  Orders are not released to customers. 
D)  Finished products are shipped directly to many geographically dispersed customers. 
A)  Finished products are kept in stock at the end of the production process. 
B)  Finished products are distributed to various distribution points. 
C)  Orders are not released to customers. 
D)  Finished products are shipped directly to many geographically dispersed customers.

Question 5

Which of the following best explains the concept of 'outgoing materials flow'?

Accepted Answer

A)  The activities needed to optimize the goods flow from suppliers to the point of consumption. 
B)  The way in which finished products are distributed by the company to its customers. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company. 
A)  The activities needed to optimize the goods flow from suppliers to the point of consumption. 
B)  The way in which finished products are distributed by the company to its customers. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company.

Question 6

Which of the following is a characteristic of 'master production scheduling (MPS)'?

Accepted Answer

A)  Customer orders, the sales plan, the planned stocks of finished products, and the purchasing plans are linked together. 
B)  The resources needed are recorded in a document from which the required composition of manufacturing resources is derived. 
C)  This is a basis for computing the quantities of materials, semi-manufactured products and components which must be manufactured. 
D)  Priorities are derived directly from the master production schedule. 
A)  Customer orders, the sales plan, the planned stocks of finished products, and the purchasing plans are linked together. 
B)  The resources needed are recorded in a document from which the required composition of manufacturing resources is derived. 
C)  This is a basis for computing the quantities of materials, semi-manufactured products and components which must be manufactured. 
D)  Priorities are derived directly from the master production schedule.

Question 7

Which of the following best explains 'pay for production'?

Accepted Answer

A)  Payment is made monthly based on units supplied. 
B)  Payment is made by the manufacturer on the basis of labour costs of the component supplier. 
C)  The manufacturer only pays the supplier for the components which have actually been consumed during the production of a given day or batch. 
D)  Payment is based on the number of hours required for the production of each unit of the component. 
A)  Payment is made monthly based on units supplied. 
B)  Payment is made by the manufacturer on the basis of labour costs of the component supplier. 
C)  The manufacturer only pays the supplier for the components which have actually been consumed during the production of a given day or batch. 
D)  Payment is based on the number of hours required for the production of each unit of the component.

Question 8

Which of the following best explains the concept of 'logistics'?

Accepted Answer

A)  The activities needed to optimize the goods flow from suppliers to the point of consumption. 
B)  Recycling packaging materials and surplus materials. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company. 
A)  The activities needed to optimize the goods flow from suppliers to the point of consumption. 
B)  Recycling packaging materials and surplus materials. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company.

Question 9

Which of the following is not a feature of 'make and send stock (MSS)'?

Accepted Answer

A)  Products are manufactured and distributed to various distribution points which are dispersed and located close to the customer. 
B)  Products are distributed to various distribution points. 
C)  Orders are ready for distribution. 
D)  Manufacturing is based upon forecasts and on expected stock turnover at the points of distribution. 
A)  Products are manufactured and distributed to various distribution points which are dispersed and located close to the customer. 
B)  Products are distributed to various distribution points. 
C)  Orders are ready for distribution. 
D)  Manufacturing is based upon forecasts and on expected stock turnover at the points of distribution.

Question 10

Which of the following is a characteristic of the JIT approach?

Accepted Answer

A)  Minimum of two suppliers. 
B)  Payment per order. 
C)  Delivery times and specification often change. 
D)  Delivery time and specifications fixed, quantities are adjusted within predetermined margins if necessary. 
A)  Minimum of two suppliers. 
B)  Payment per order. 
C)  Delivery times and specification often change. 
D)  Delivery time and specifications fixed, quantities are adjusted within predetermined margins if necessary.

Question 11

Which of the following best explains the concept of 'logistics management'?

Accepted Answer

A)  Identifying saving in direct and indirect activities. 
B)  Recycling packaging materials and surplus materials. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company. 
A)  Identifying saving in direct and indirect activities. 
B)  Recycling packaging materials and surplus materials. 
C)  Includes the management of materials planning, the supply of raw materials and other purchased goods, internal transportation, storage and physical distribution. 
D)  The way in which materials processes are managed within a company.

Question 12

Which of the following is a characteristic of 'cartel'?

Accepted Answer

A)  Price can be set by a market- or price leader, or arranged through some form or price arrangement. 
B)  There is a high degree of product differentiation. 
C)  A limited number of suppliers and a limited product differentiation. 
D)  The supplier cannot influence the price of the product because there are a large number of buyers. 
A)  Price can be set by a market- or price leader, or arranged through some form or price arrangement. 
B)  There is a high degree of product differentiation. 
C)  A limited number of suppliers and a limited product differentiation. 
D)  The supplier cannot influence the price of the product because there are a large number of buyers.

Question 13

Which of the following best explains 'customer order decoupling point (CODP)'?

Accepted Answer

A)  The point in the supply chain where a production order becomes customer specific. 
B)  Activities are planned based upon customer order. 
C)  Orders are ready for distribution. 
D)  Activities are planned based upon forecast. 
A)  The point in the supply chain where a production order becomes customer specific. 
B)  Activities are planned based upon customer order. 
C)  Orders are ready for distribution. 
D)  Activities are planned based upon forecast.

Question 14

What is the driver for all activities downstream from the order penetration point?

Accepted Answer

A)  Customer orders. 
B)  Forecast-based. 
C)  Internal audit. 
D)  Quality control. 
A)  Customer orders. 
B)  Forecast-based. 
C)  Internal audit. 
D)  Quality control.

Question 15

Which of the following best explains the concept of 'diverging supply chain'?

Accepted Answer

A)  The finished product of one link is the main or sole input for the next production stage of various other industry columns. 
B)  The finished product of one link is the main or sole input for the subsequent link. 
C)  Various finished products of links of various supply chains are the input for the next link. 
D)  A company producing a diverse range of products. 
A)  The finished product of one link is the main or sole input for the next production stage of various other industry columns. 
B)  The finished product of one link is the main or sole input for the subsequent link. 
C)  Various finished products of links of various supply chains are the input for the next link. 
D)  A company producing a diverse range of products.

Question 16

Which of the following is not a characteristic of 'Manufacturing Resources Planning (MRP-II)'?

Accepted Answer

A)  Controls production capacity. 
B)  Releasing purchasing requisitions. 
C)  Taking into account the relationship between materials flows and the required capacity. 
D)  Controls relevant materials flows. 
A)  Controls production capacity. 
B)  Releasing purchasing requisitions. 
C)  Taking into account the relationship between materials flows and the required capacity. 
D)  Controls relevant materials flows.

Question 17

Which of the following is not an element of a purchasing information system?

Accepted Answer

A)  Requisitioning and ordering. 
B)  Product, contract and supplier database. 
C)  Order follow-up. 
D)  Reduced purchase prices. 
A)  Requisitioning and ordering. 
B)  Product, contract and supplier database. 
C)  Order follow-up. 
D)  Reduced purchase prices.

Question 18

Which of the following is a characteristic of 'monopolistic competition'?

Accepted Answer

A)  Neither the supplier nor the buyer can influence the price of the product because there are a large number of buyers and sellers. 
B)  There is a high degree of product differentiation. 
C)  A limited number of suppliers and a limited product differentiation. 
D)  The supplier cannot influence the price of the product because there are a large number of buyers. 
A)  Neither the supplier nor the buyer can influence the price of the product because there are a large number of buyers and sellers. 
B)  There is a high degree of product differentiation. 
C)  A limited number of suppliers and a limited product differentiation. 
D)  The supplier cannot influence the price of the product because there are a large number of buyers.

Question 19

Which of the following is a characteristic of 'pure competition'?

Accepted Answer

A)  Neither the supplier nor the buyer can influence the price of the product because there are a large number of buyers and sellers. 
B)  There is a high degree of product differentiation. 
C)  A limited number of suppliers and a limited product differentiation. 
D)  The supplier cannot influence the price of the product because there are a large number of buyers. 
A)  Neither the supplier nor the buyer can influence the price of the product because there are a large number of buyers and sellers. 
B)  There is a high degree of product differentiation. 
C)  A limited number of suppliers and a limited product differentiation. 
D)  The supplier cannot influence the price of the product because there are a large number of buyers.

Question 20

Which of the following best explains the term 'vendor managed inventory'?

Accepted Answer

A)  An infrequent replenishment programme that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish product at the store or warehouse level. 
B)  A continuous replenishment programme that uses forecasts to allow the supplier to manage and replenish product at the store or warehouse level. 
C)  A monthly replenishment programme that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish product at the store or warehouse level. 
D)  A weekly replenishment programme that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish product at the store or warehouse level. 
A)  An infrequent replenishment programme that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish product at the store or warehouse level. 
B)  A continuous replenishment programme that uses forecasts to allow the supplier to manage and replenish product at the store or warehouse level. 
C)  A monthly replenishment programme that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish product at the store or warehouse level. 
D)  A weekly replenishment programme that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish product at the store or warehouse level.

Which of the following best explains the concept of 'supply chain'?

Which of the following best explains 'Kanban'?

Which of the following is an aspiration of supply chain management?

Which of the following is not a feature of 'make to stock (MTS)'?

Which of the following best explains the concept of 'outgoing materials flow'?

Which of the following is a characteristic of 'master production scheduling (MPS)'?

Which of the following best explains 'pay for production'?

Which of the following best explains the concept of 'logistics'?

Which of the following is not a feature of 'make and send stock (MSS)'?

Which of the following is a characteristic of the JIT approach?

Which of the following best explains the concept of 'logistics management'?

Which of the following is a characteristic of 'cartel'?

Which of the following best explains 'customer order decoupling point (CODP)'?

What is the driver for all activities downstream from the order penetration point?

Which of the following best explains the concept of 'diverging supply chain'?

Which of the following is not a characteristic of 'Manufacturing Resources Planning (MRP-II)'?

Which of the following is not an element of a purchasing information system?

Which of the following is a characteristic of 'monopolistic competition'?

Which of the following is a characteristic of 'pure competition'?

Which of the following best explains the term 'vendor managed inventory'?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters

Exam 11: Purchasing Logistics and Supply Chain Management

Which of the following best explains the concept of 'supply chain'?

Which of the following best explains 'Kanban'?

Which of the following is an aspiration of supply chain management?

Which of the following is not a feature of 'make to stock (MTS)'?

Which of the following best explains the concept of 'outgoing materials flow'?

Which of the following is a characteristic of 'master production scheduling (MPS)'?

Which of the following best explains 'pay for production'?

Which of the following best explains the concept of 'logistics'?

Which of the following is not a feature of 'make and send stock (MSS)'?

Which of the following is a characteristic of the JIT approach?

Which of the following best explains the concept of 'logistics management'?

Which of the following is a characteristic of 'cartel'?

Which of the following best explains 'customer order decoupling point (CODP)'?

What is the driver for all activities downstream from the order penetration point?

Which of the following best explains the concept of 'diverging supply chain'?

Which of the following is not a characteristic of 'Manufacturing Resources Planning (MRP-II)'?

Which of the following is not an element of a purchasing information system?

Which of the following is a characteristic of 'monopolistic competition'?

Which of the following is a characteristic of 'pure competition'?

Which of the following best explains the term 'vendor managed inventory'?

The Role of Purchasing in the Value Chain

Industrial Buying Behavior: Decision-Making in Purchasing

The Purchasing Management Process

Buying Business Services

Contract Management for Complex Projects

Public Procurement

Purchasing and Business Strategy

Outsourcing and Risk Management

Category Sourcing: Developing Effective Sourcing Strategies

Purchasing Innovation and Quality Management

Purchasing Organization

Performance Measurement and Governance in Purchasing

Cost Approaches and Techniques

Purchasing, Corporate Social Responsibility and Integrity

Filters