QUESTION 3 Uplifting communities is a key priority for South Arica. If PEP Stores decides to increase the proportion of clothing items bought from local suppliers to more than 80% of total inventory and creates programmes to establish new local suppliers, these actions represent an example of the following level of purchasing and supply planning and objectives? [1] Operational objectives and planning [2] Tactical objectives and planning [3] Mission statement and strategic planning [4] Integrated objectives

QUESTION 4 Assume that the purchasing and supply manager at Takelot (an online retailer) is requested to submit a report on suppliers in accordance with the policy guidelines of the organisation. In his report, he lists the different types of suppliers and their dealings with Takealot. Which one of the following best describes a situation where the purchasing and supply function of Takealot buys more than half of a suppliers production of video games? [1] unreliable suppliers [2] suppliers specialised knowledge [3] captive suppliers [4] reciprocal suppliers

QUESTION 5 Which one of the following factors directly contributes to lower total cost? [1] innovation [2] improved customer lead time [3] lower inventory cost [4] improved quality

QUESTION 4 A General Manager is looking to measure the extent to which the purchasing and supply function has achieved the overall objectives for which the function was introduced into the organisation. Which one of the following sets of measures is used to determine this? [1] The outcomes of a training and integration questionnaire [2] Cost savings, workload and administrative performance [3] Communicating and publicising programme results [4] Pricing proficiency, supplier performance and materials flow

QUESTION 5 If an organisation experiences an unexpected slump in sales when a new competing supplier enters the market, which one of the following may directly contribute to increased sales? [1] lower inventory carrying cost [2] increased flexibility [3] reduced quality cost [4] partnering with long-term suppliers

QUESTION 6 Wheel Forge, a tyre manufacturer, had to reject a delivery from one of its rubber suppliers. Which function at Wheel Forge is responsible for all negotiations with suppliers over faulty rubber consignments and rejections? [1] The Just-in-Time management team [2] The purchasing and supply function [3] Supervisors on tyre manufacturing line [4] The finance function