Question 1 (True or False) [2 x 10 = 20 Marks] Which of the following statements are true or false? 1. One of the objectives of purchasing and supply chain management is to maintain an optimum balance of inventory that would ensure the desired level of customer service while increasing costs. 2. Supply management has a major impact on the net income of the firm because it increases input costs and reduces sales revenue 3. The purchasing and supply function of a firm operates independently from the other enterprise functions. 4. Supply Management is the process of planning, organising, coordinating, and controlling all the resources of the firm effectively and efficiently to attain the objectives of the firm as determined by management. 5. Strategic plans formulated at top management of purchasing and supply management are implemented or executed at top-level management 6. In decentralized purchasing structures negotiating power is increased and volume discounts are made possible. 7. Steps of the strategic sourcing process: build the team, develop a strategy, conduct market research, manage supplier relationships and negotiate contracts. 8. The supplier selection decision is based on a uniform set of weighted criteria that can be applied to every purchase. 9. Outsourcing is necessary for the reduction of operating and control costs. 10. Uncertainty arises from a person's imperfect state of knowledge concerning future events