Question 1

Which of the following allow an organisation to have more flexible space for storage by leveraging the facilities of other parties? Select TWO that apply.

Options :

A : Eliminating dead stock or inventory

B : Consignment stocking

C : Temporary warehousing

D : Adopting carousel-type storage

E : Installing double-deep pallet racking

Answer: B,C

Question 2

Which of the following are examples of subjective methods of forecasting? Select TWO that apply. Trend line analysis Moving averages Market research Expert opinion Seasonal variations

Options :

A : 1 and 2 only

B : 3 and 4 only

C : 2 and 5 only

D : 1 and 5 only

Answer: B

Question 3

A big investment bank wants to buy a complex banking system that will work with different applications at different times of the day. The system needs to pass various tests by the in-house team and off-shore testing consultants together. The tests will be done in a shared environment with limited resources and overseen by the on-shore development team. The costs for testing are generally classified as...?

Options :

A : Purchase prices

B : Maintenance costs

C : Insurance

D : Acquisition costs

Answer: D

Question 4

Which of the following indicates the supplier's attention to the environment?

Options :

A : The supplier uses low-cost materials to produce vehicles

B : The supplier changes the dimension of vehicles

C : The supplier uses recycled materials to produce vehicles

D : The supplier changes the colour of vehicles

Answer: C

Question 5

GAP Ltd is a retail business that wants to reduce its spending on stock. Its current procurement process is manual, repetitive and slow. The management team plans to use procure-to-pay (P2P) software to streamline the process and cut costs. What kind of cost is GAP aiming to lower?

Options :

A : Cost of stockouts

B : Acquisition costs

C : Holding costs

D : Disposal costs

Answer: B

Free L4M7 Mock Exam – Practice Online Confidently

Buying Options: