Question 1

David is required to include stock turnover ratio in the report. Which of the following should be collected to calculate the rate? Select THREE that apply

Options :

A : Discounted rate

B : Delivery schedule

C : Net purchase

D : Closing stock

E : Lead time

F : Opening stock

Answer: A,C,D

Question 2

Which of the following are most likely the benefits of using unit loads? Select TWO that apply.

Options :

A : Safer handling

B : Increase transport time of each item

C : Unit loads must be placed on pallets

D : Reduce handling cost of one unit

E : Minimise space utilisation

Answer: A,D

Question 3

One of the classifications of inventory is referred to as 'indirect supplies.' Which of the following items are examples of indirect supplies in a water bottling plant? Lubricants for maintenance of production machines Computer cartridges for the procurement office Reams of printed labels to stick on water bottles Blue-colored plastic caps to seal the water bottles

Options :

A : 1 and 2 only

B : 1 and 3 only

C : 2 and 3 only

D : 3 and 4 only

Answer: A

Question 4

GAP Ltd is a growing retail business. It spends a lot of money on buying stock for sale. However, the procurement process is still largely manual. This manual process contains a lot of tasks that are repeated for each procurement event and time consuming. The company management team decides to adopt procure-to-pay (P2P) software in order to eliminate duplicate activities and improve process efficiencies. Which type of cost is GAP targeting?

Options :

A : Holding costs

B : Cost of stockouts

C : Acquisition costs

D : Disposal costs

Answer: C

Question 5

A logistics company has a 2-story warehouse in the suburban area. The goods receiving area and dispatch area are located on the ground floor only. There is a lift connecting the two floors. The daily operations of the warehouse are quite busy. Which of the following would the best arrangement for this warehouse?

Options :

A :

Small items in tote boxes will be stored on the ground floor with forklifts and other equipment, high-usage palletised items will be stored on the first floor

B : Pallets, roller cages and other bulky items will be stored on the ground floor, smaller items in plastic tote boxes will be stored on the first floor

C : Forklifts and other warehouse equipment will park on the ground floor, all inventories will be stored on the first floor

D : Medium- to low-usage palletised items will be stored on the ground floor, high-usage items will be stored on the first floor where the building administrative office is located

Answer: B