. Multiple Choice

A. By economic utility we mean:

1. Products being in a form that (1) can be used by the customer and (2) is of value to the customer.
2. Having products available where the customers need them; products are moved from points of lesser value to points of greater value.
3. Having products available when customers need them.
4. The value or usefulness of a product in fulfilling customer needs or wants.
5. The value or usefulness that comes from a customer being able to take possession of a product.

6. By possession utility we mean:

   1. Products being in a form that (1) can be used by the customer and (2) is of value to the customer.

   2. Having products available where the customers need them; products are moved from points of lesser value to points of greater value.

   3. Having products available when customers need them.

   4. The value or usefulness of a product in fulfilling customer needs or wants.

   5. The value or usefulness that comes from a customer being able to take possession of a product.

   C. By form utility we mean:

   1. Products being in a form that (1) can be used by the customer and (2) is of value to the customer.

   2. Having products available where the customers need them; products are moved from points of lesser value to points of greater value.

   3. Having products available when customers need them.

   4. The value or usefulness of a product in fulfilling customer needs or wants.

   5. The value or usefulness that comes from a customer being able to take possession of a product.

   D. By place utility we mean:

   1. Products being in a form that (1) can be used by the customer and (2) is of value to the customer.

   2. Having products available where the customers need them; products are moved from points of lesser value to points of greater value.

   3. Having products available when customers need them.

   4. The value or usefulness of a product in fulfilling customer needs or wants.

   5. The value or usefulness that comes from a customer being able to take possession of a product.

   E. By time utility we mean:

   1. Products being in a form that (1) can be used by the customer and (2) is of value to the customer.

   2. Having products available where the customers need them; products are moved from points of lesser value to points of greater value.

   3. Having products available when customers need them.

   4. The value or usefulness of a product in fulfilling customer needs or wants.

   5. The value or usefulness that comes from a customer being able to take possession of a product.

   F. The increased importance of logistics results from the following aspects except:

   1. An increase in economic regulation

   2. Changes in customer behavior

   3. Technological advances

   4. The growing power of retailers

   5. Globalization of trade

   G. Which of the following is a procurement objective:

   1. Supporting organizational goals and objectives

   2. Managing the purchasing process effectively and efficiently

   3. Managing the supply base

   4. Developing strong relationships with other functional groups

   5. All of the above

   H. Obsolete materials means:

   1. Stock that exceeds the reasonable requirements of an organization, perhaps because of an overly optimistic demand forecast.

   2. Materials that are not likely to ever be used by the organization that purchased it.

   3. Materials that are no longer serviceable, have been discarded, or are a by-product of the production process.

   4. Materials that have been spoiled, broken, or otherwise rendered unfit for further use or reclamation (no economic value).

   5. None of the above.