1.7 An organization’s ability to respond to changes in demand with respect to volume and
variety refers to
.
a. responsiveness
b. leanness
c. agility
d. relevancy
1.8 Which of the following statements do you think has a greatest validity?
a. Purchasing has a broader meaning than procurement.
b. Procurement is broadly equivalent to purchasing.
c. Procurement is broadly equivalent to purchasing.
d. None of the above.
1.9 The buying power has the ability to:
a. Supply own goods
b. Increase profits in the industry
c. Reduce the selling price
d. Influence the share price
1.10
Which statement best describes a supply chain?
a. Achain of interconnected companies
b. Achain of interdependent companies
c. Anetwork of competing companies
d. Anetwork of interdependent and interconnected companies competing as one
[Sub-Total: 20 Marks]
SECTION B
[20 MARKS]
QUESTION 2: TRUE & FALSE QUESTIONS
[2 Marks X 10 = 20 Marks]
2.1 Organizations that put a lot of emphasis on customer satisfaction are said to have a
customer focus.
2.2 An aircraft manufacturer is a good example of an organization with a heavy inbound
flow and a simple outbound flow.
2.3 Logistics management is not concerned with the flow of services, its focus is primarily
with the flow of goods.
2.4 Consumer’s purchasing and recycling behaviours will not change when they realize they
need to pay for reverse logistics and recycling of the products they get rid of.