Started on Monday, 16 May 2022, 12:24 PM

State Finished
Completed on Monday, 16 May 2022, 1:24 PM
Time taken 59 mins 13 secs
Marks 14.00/15.00
Grade 93.33 out of 100.00
Question 1
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Karyn owns a home-scent business and is currently negotiating with the supplier of the
soy wax she uses in her candles. Negotiations will occur at which level of purchasing and
supply planning?

Select one:

a.
Tactical management level

b.
Operations level

c.
Strategic level

d.
Functional level
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The correct answer is: Tactical management level

Question 2
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During which step of the purchasing and supply cycle will tenders be used to determine
pricing?
Select one:

a.
Research on prices and availability

b.
Development and description of a need

c.
Choice of supplier

d.
Issuing the order and concluding the contract
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The correct answer is: Research on prices and availability

Question 3
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Which one of the following is a disadvantage of holding too little inventory?

Select one:

a.
Operating capital is tied up, with the resultant opportunity and interest costs.

b.
Cost of production or job interruptions and the accompanying strained relations with
users or marketers in the business.

c.
Losses in terms of depreciation, obsolescence, damage and theft.

d.
Costs in terms of storage space, more warehouse staff and equipment, and larger
insurance premiums.
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The correct answer is: Cost of production or job interruptions and the accompanying
strained relations with users or marketers in the business.
Question 4
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Karyn owns a home-scent business. To create a truly organic experience for her
customers, Karyn has entered into a supplier alliance with a small, organic coconut oil
producer. Supplier alliances will occur at which level of purchasing and supply planning?

Select one:

a.
Strategic level

b.
Tactical level

c.
Middle-management level

d.
Operations level
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The correct answer is: Strategic level

Question 5
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During the first step of the purchasing process, the need for materials is conveyed by
means of a ___________________ .

Select one:

a.
delivery note

b.
requisition

c.
reminder note

d.
inspection report
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The correct answer is: requisition

Question 6
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The JIT system at Toyota SA is complicated by the fact that their suppliers are dispersed
through South Africa and some of the suppliers are even overseas. If Toyota moves away
from the JIT system and decides to incorporate a new computer-assisted system which is
used to maintain minimum inventory levels, they would make use of the ______________
system.

Select one:

a.
cyclical-ordering

b.
materials-requirements planning

c.
fixed-order quantities

d.
quick-response
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The correct answer is: materials-requirements planning

Question 7
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For which one of the following options is stores reception responsible for?

Select one:

a.
Checking the quantities and condition of materials received.

b.
Ensuring that the correct quantities of materials are ordered.

c.
Communicating with suppliers.

d.
Filing all documentation with regard to the order.
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The correct answer is: Checking the quantities and condition of materials received.

Question 8
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During supplier selection, it is expected that an assurance of data protection will become
an important consideration. Other considerations include past performance and quality
which are considered during the __________________ .

Select one:

a.
compilation of a list of suppliers

b.
shortlisting of suppliers

c.
final choice of supplier
d.
evaluation of supplier performance
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The correct answer is: final choice of supplier

Question 9
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For communication purposes, the description of quality is entered in which document?

Select one:

a.
The requisition

b.
The delivery note

c.
The invoice

d.
The price list
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The correct answer is: The requisition

Question 10
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Which one of the following best describes a closed tender?

Select one:

a.
A tender which is no longer valid.

b.
A tender where the due date has lapsed, but no outcome was reached.

c.
A tender where only specific suppliers were requested to tender.

d.
A tender where an agreeable outcome was reached.
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The correct answer is: A tender where only specific suppliers were requested to tender.

Question 11
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Anja owns a bakery, Earth First, which bakes artisanal breads from almond flour. Nearly
all the materials required for her artisanal breads are bought from one supplier,
Lialmonde Inc. Which type of purchasing and supply organisational structure should Anja
use at Earth First?

Select one:

a.
Centralised structure

b.
Decentralised structure

c.
Combination of decentralised and centralised

d.
Single supplier structure
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The correct answer is: Centralised structure

Question 12
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 Flag question
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Kgaugelo owns an organic food store in Newlands. None of his produce is pre-packaged
and consumers are expected to bring their own containers. The prices charged for
produce are based on the weight of the produce consumers choose to purchase and as
such, quantities vary greatly. To assist with inventory control, Kgaugelo and his team do
stocktaking at the end of each week for each product in the store and the order
quantities are adjusted to the quantities available. Which inventory-control system would
be the most appropriate to use in this scenario?

Select one:

a.
The cyclical-ordering system

b.
The materials-requirements planning system

c.
The just-in-time system

d.
The quick-response system
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The correct answer is: The cyclical-ordering system

Question 13
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An organisation such as Toyota, with a head office, different business units and plants,
has various options when it comes to an organisational structure. If each plant and each
branch at Toyota do their own purchasing, then Toyota has a ____________ purchasing and
supply structure.

Select one:

a.
centralised

b.
decentralised

c.
combination of centralised and decentralised

d.
matrix
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The correct answer is: decentralised

Question 14
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Karyn owns a home-scent business. Karyn is responsible for purchasing all the materials
required to produce the business' candles whereas as her partner, Kagiso, is responsible
for purchasing all the materials required to produce the business' bath melts. They have
recently appointed Shamila who is responsible for purchasing the materials required to
produce their new diffuser line of scents. This is an example of a/an _________________ .

Select one:

a.
specialist group

b.
decentralised purchasing structure

c.
informal structure

d.
cross-functional team
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The correct answer is: specialist group

Question 15
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Following several worldwide recalls, it has become evident that Toyota has rushed into
relationships with suppliers whom have not been adequately vetted. Supplier alliances
and supplier development are thus crucial elements that need to be addressed. At which
level of purchasing and supply planning will supplier alliance and supplier development
occur?

Select one:

a.
Strategic level

b.
Tactical level

c.
Middle-management level

d.
Operations level
Feedback
The correct answer is: Strategic level