2x10-20 Marks (2 marks) Question 1: Multiple Choice Write the letter next to the correct answer. 1.1. Which of the following is not a reason for carrying inventory? a) to maintain independence of operations b) to take advantage of economic purchase-order size to make the system less productive d) to meet variation in product demand (2 marks) 1.2. Which of the following is NOT an element of supply chain management? a) Distribution and transportation b) Inventory c) Production d) Labor 1.3. Logistic network through which unwanted or excess products by resellers or consumers is classified as: (2 marks) a) Inbound distribution b) outbound distribution c) forward distribution d) reverse distribution 1.4. Process of managing upstream and downstream of final goods, flow of raw materials and information about resellers and final consumers is classified as (2 marks) a) marketing logistics network b) supply chain management c) delivery network d) physical distribution network (2 marks) 1.5. What is the point of warehouse management systems? a) To keep track of what is in inventory b) To keep track of what is on the sales floor c) To keep track of all goods d) To keep track of goods in transit (2 marks) 1.6. 'Buffer stock is the level of stock a) Half of the actual stock b) At which the ordering process should start c) Minimum stock level below which actual stock should not fall d) Maximum stock in inventory (2 marks) 1.7. The period between placing an order its receipt in stock is known as: a) Lead time b) Carrying time c) Shortage time d) Over time 1.8. The order cost per order of an inventory is N$ 400 with an annual carrying cost N$ per unit. The Economic Order Quantity (EOQ) for an annual demand of 2000 units is (2 marks) a) 400 b) 440 c) 480 d) 500 (2 marks) 1.9. The following are examples of waste, except which one a) IT manufacturing b) Over production c) Waiting times d) Defective output (2 marks) 1.10.Buyer is dominant when? a) sources of suppliers b) Many Globalization c) High switching cost d) All of the above Sub-total: 20 Marks