Question 1: Multiple choice Questions 2x 20 = (40 Marks) For each question, choose the correct answer by writing the correct letter next to the question number. For example, 1. (g). 1.1 It is not one of the factors contributing to the development of the contemporary supply management philosophy (a) Recognition that concern with strategic supply rather than price is important

(b) Global competition demands rapid product innovation (c) The Rapid developments in information technology which facilitated the evolution (d) The realization that supplier support can increase efficiency and emphasis on supplier relations (e) The nature of the products which can be sold to the consumers on a reasonable price 1.2 The difference between Purchasing and Supply Management (a) Close relationship between the concepts of purchasing and supply management (b) Same group of activities involved (c) Supply chain management seems to maintain a broader perspective than purchasing (d) a + b + c (e) None of the above 1.3Steps of the purchasing system (a) Analysing the invoice (b) Selection of suppliers (c) Bidding and negotiation (d) Specification (e) All of the above 1.4 Influence of supply management on general business operations includes the following, except (a) Operations/ production function (b) Marketing function (c) Human resources function (d) Administrative and finance function (e) Business function 1.5 Given its importance, the order form copies are made and distributed to the following functions or groups (a) Supplier receiving the original order (b) Financial department receives a copy for verifying the invoice and for payment (c) Receiving department, frequently part of the stores, gets a copy notifying it to expect a delivery (d) All of the above (e) None of the above 1.6 Which of the following is not true about product classification matrix

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Marks Available (a) Leverage items are associated with high profit impact and low supply risk (b) Bottleneck items are associated with high supply risk and low supply risk (c) Strategic items are associated with high profit impact and high supply risk (d) Noncritical items are associated with low profit impact and low supply risk (e) Noncritical items are associated with high profit impact and low supply risk 1.7 The most important aspect of analysing the invoice includes the following (a) Measuring supplier performance (b) Closing the order (c) Receipt inspection and distribution (d) Verifying calculations (e) Source of identification 1.8 Supply chain processes, includes the following (a) Information processing (b) Efficient logistics (c) Sourcing (d) Customer driven supply chain (e) All of the above 1.9 Key concepts of the Supply Chain Management (a) Value and the creation of the customer value (b) Total cost of ownership (c) Integration of processes (d) All of the above (e) None of the above 1.10 Are the components of the purchasing and supply strategy formulation considerations (a) Material planning requirements (b) Opportunities (c) Extraordinary projects (d) Supplier market (e) Only b and d 1.11 Purchasing of professional services includes the following except... (a) Consultation with the legal department and seek the professional services (b) Conduct an internal audit to determine the current cost and use of professional services (c) Define the scope of each project

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Marks Available

(d) Ensure that services are satisfactory (e) Buy-in into policies and practices for purchasing professional services is essential 1.12 Reasons to procure capital equipment (a) To achieve economy in operation and maintenance (b) To ensure availability because organizations are dependent on its use (c) For safety, pollution and emergency protection (d) a +b +c (e) a +b+ c are incorrect 1.13 Underlying reasons for international & global purchasing, includes the following: (a) Increasing foreign competition from low-cost procedures (b) Move towards the creation of global strategic alliances (c) a + b (d) Highlight the key success factors for global sourcing (e) Trading online 1.14 Circumstances under which negotiations takes place (a) Alliances and long-term agreements (b) Post- tender negotiations (c) Normal relationships with suppliers (d) Competition in the marketplace (e) All of the above 1.15 Advantages of Research in purchasing management (a) Availability of information for decision making (b) Strategic supply chains can be developed, reducing interruptions in supply (c) Dealing with supplier relationship management (d) Better decisions can be made (e) a + b + d 1.16 Negative influences of the Materials Requirement Planning (MRP) on the purchasing management (a) Forging closer links with suppliers and user departments (b) Changing the stock levels so that they can equate the production (c) Fewer outstanding orders (d) Elimination of expediting orders (e) A considerable decrease in the inventory of purchased parts

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1.17 ................... is not a method of benchmarking (a) Competing tenders, quotations or offers (b) Existing and stable market prices (c) Historical data or reliable trends (d) Substitution of products or services (e) Internal estimates 1.18 ........................... is not one of the basic elements of a Total Quality Management (TQM) system. (a) Commitment (b) Coordination (c) Supplier management (d) Negotiation (e) Quality information 1.19 Role of purchasing in corporate governance (a) Largest spender of funds (b) Act ethically and lawfully (c) Best value package with every purchase (d) Keep up to date with newest developments (e) All of the above 1.20 Supplier evaluation criteria (a) Quality and quality accreditations (b) Cost minimization (c) Profit maximization (d) Need analysis (e) Purchasing plan