Question 1

“A measure of the ability of an organisation to supply customers without delay” is the best definition of which of the following:

Options :

A : Safety stock

B : Re-order level

C : Key performance indicator

D : Service level

Answer: D

Question 2

Which of the following best describes what happens when order volumes from customers increase and multiply through the supply chain?

Options :

A : Pareto curve

B :

Opitz system

C : Seasonal demand

D : Forrester effect

Answer: D

Question 3

Ranger Mobile Ltd is a new smartphone manufacturer that uses the just-

Options :

A : Insurance premiums

B : Resale value of the warehouse

C : Costs of facilities management

D : Technology upgrade costs

E : Initial construction costs

Answer: C,D

Question 4

Which of the following can replace pallets as bases for unit loads but they require push pull accessories to retrieve or discharge unit load?

Options :

A : Skids

B : Shrink wraps

C : Post pallets

D : Slip sheets

Answer: D

Question 5

XYZ Ltd is looking for new office space overseas. To keep the overhead expense minimal, it chooses leasing rather than purchasing new office. In leasing contract, which of the following costs are most likely to be attributable to the lessee?

1. Disposal costs

2. Rentals

3. Operating costs

4. Vendor selection costs

Options :

A : 1, 3 and 4

B : 1, 2 and 3

C : 2, 3 and 4

D : 1, 2 and 4

Answer: C