Question 1

Which of the following is a definition of the economic order quantity – EOQ?

Options :

A : Formula that buyers use to calculate the most economically viable quantity in which to order additional stock

B :

Formula that buyers use to calculate the most economically viable price in which to order additional stock

C : Formula that buyers use to calculate the most economically viable place in which to order additional stock

D : Formula that buyers use to calculate the most economically viable quantity in which to order additional stock

Answer: A

Question 2

The buyer does not need to look at global sources to fully understand their own country’s domestic importation regulations.

Options :

A : TRUE

B : FALSE

Answer: B

Question 3

Which of the following are examples of indirect costs? More than one applies

Options :

A : Lease hire of the company vehicle

B : Packaging

C : Rent of the office

D : Wages of salaried staff

Answer: A,C,D

Question 4

An organisation can be in profit but have poor cash flow

Options :

A : TRUE

B : FALSE

Answer: A

Question 5

The MRP refers to minimum order quantity, batch quantities and buffer stock to arrive at an order and creates BOM for each product ordered. What does BOM stand for?

Options :

A :

Bill of manufacturing

B : Bill of materials

C : Bill of measurements

D :

Bill of motion

Answer: B