Question 1

What back‐up plan could a manufacturer have in case a supplier is unable to obtain raw materials? Select all that apply

Options :

A : Contract other suppliers to assist should problems arise

B : Do nothing

C : Hold extra stock

D : None of the above

Answer: A,C

Question 2

An individual or organisation who is the end user of the goods or services that have been produced or supplied is known as what?

Options :

A : Customers

B : Consumers

C : Emptor

D : Patron

Answer: B

Question 3

All parties must have the _______ that their agreement can be enforced by civil law, i.e. if something goes wrong, one party can take legal action against the other.

Options :

A : Acceptance

B : Capacity

C : Consideration

D : Intention

E : Offer

F : Signature

Answer: D

Question 4

There are 2 types of specifications, what are they?

Options :

A : Capacity and Price

B : Commodity and Production

C : Conformance and Performance

D : Customer and Prevention

Answer: C

Question 5

A contract can be amended if both parties are in agreement, for example, to revise quantities, KPIs, payment terms, length of contract, etc.

Options :

A : TRUE

B : FALSE

Answer: A