PROCUREMENT

A drawback to a business of using just in time stock control is

• High insurance costs

• High insurance costs

• Storage costs will be high

•  Delays in deliveries could result in idle resources

Procurement vs Purchasing

• Purchasing has a broader meaning than procurement

• Procurement is broadly equivalent to purchasing.

• • Procurement has a broader meaning than purchasing.

•  None of the above

Which of the following is the first stage in a supply chain for a chocolate bar?

• The supplier of cocoa beans

•  The manufacturer of the chocolate bar

•  Transportation between each stage of the supply chain

• The retailer

A business getting good value when buying products means that it will:

• Always get the cheapest price

• Always get the highest quality

• Get the right balance between price and quality

• Charge its customers the lowest price possible

.Which of the following is a benefit to a business of having an efficient procurement department?

• Improved levels of customer service

• Increased levels of staff motivation

• Higher sales revenue

• Lower unit costs

The time difference between a business ordering and receiving stock is called the:

• Reorder quantity

• Lead time

•  Buffer stock

• Reorder level

Which area of business will Amazon particularly focus upon to ensure customer delivery on time?

• Finance

• Sales

• Logistics

• Marketing

The business term that involves choosing a supplier, agreeing what to buy at a certain price and by when is called:

• Logistics

• Supply chain management

• Stock control

• Procurement

 Purchasing transaction is a contract between?

• Business and buyer

• Seller and buyer

• Industries and sellers

• Seller and business

What is the primary goal of logistics management?

• Maximizing profit

• Minimizing lead time

• Reducing customer complaints

• Optimizing supply chain operations