2019 SCM 2nd Opp-July

QUESTION 2 20 Marks

(5 Marks) Answer the following questions by indicating whether the below statements are TRUE or FALSE.

2.1 One limitation of the EOQ model is that it does not take into account the seasonal fluctuations in the cost of inventory.

2.2 Of the factors that make up the total cost of ownership (TCO), the big majority of this cost is in the acquisition cost.

2.3 One of the advantages of collaborative relationships is that lower skill levels of procurement personnel are required.

2.4 Supply management is also known as procurement at many firms and government agencies.

2.5 ABC analysis facilitates the management of inventory according to the value it holds or the value derived from it.