Multiple choice questions with justification (1 point per each)

1. Its common for organizations in most cases of stock outs that it can cost approximately ____ times as much to get a new customer as it does to keep an existing customer.

a. three

b. four

c. five

d. six

2. Considered to be the most used form of materials handling in warehouses.

a. side loaders b. pickers

c. industrial trucks

d. all of the above

3. ____ identifies opportunities to recover revenues or reduce costs associated with scrap, surplus, obsolete, and waste materials.

e. recycling

f. reuse

g. reverse logistics

h. investment recovery

4. Is the compensatory exchange between customer service levels and inventory costs for determining optimal inventory balances.

a. Logistics Total cost tradeoff

b. carrying cost and ordering cost tradeoff

c. carrying cost and stockout cost tradeoff

d. b and c

e. a and b

5. Which of the following is not considered to be an objective of purchasing?

a. Waste reduction

b. Supplier negotiations

c. Placing POs

d. Supplier evaluation

e. To ensure timely delivery.