Chap 4 (4.1)

What is operational procurement primarily focused on?

• Maximizing long-term investments

• Enhancing marketing strategies

• Sustaining daily operations of a business

• Reducing employee turnover

Which principle aims to reduce risk in procurement?

• Multiple supplier principle

• Return on assets principle

• Balance of interest principle

• Service & logistics cost principle

What does the leverage principle in procurement suggest?

• Relative cost reduction in procurement is more effective for profits

• Only supplier competition matters

• Cost reductions in procurement are less effective

• All cost reductions are equally effective

What is a 'new buy' in the procurement method?

• Buying from a familiar supplier

• Buying only when needed

• Renegotiating with existing suppliers

• Purchasing new products or opening new branches

What is the purpose of safety stock?

• To increase overall inventory levels

• To mitigate risks of stockouts

• To reduce supplier relationships

• To eliminate the need for forecasting

Which of the following is NOT a type of inventory?

• Cycle inventory

• Transit inventory

• Safety stock

• Supplier inventory

What does EOQ stand for?

• Estimated Order Quantity

• Effective Order Quality

• Economic Order Quantity

• Essential Order Quantity

What is the primary goal of inventory management?

• Reducing employee workload

• Increasing supplier costs

• Satisfying production and exchange needs at reasonable costs

• Maximizing storage space

What is a characteristic of the seller-centric model in e-commerce?

• Focus on customer feedback

• Sellers build websites and direct sales channels

• Customers set up the purchasing system

• Power belongs to the customers

Which of the following is a requirement for effective inventory management?

• High levels of safety stock

• Accurate forecasting of customer needs

• Reducing product variety

• Minimizing supplier relationships