Question 1
An example of reverse logistics at Air Chefs could be ... .
1. reversing the loading trucks to the ramps for easy loading onto the aircraft
2. communicating with the cabin crew to inform them of the final flight menu
3. employing chefs from culinary schools
4. recycling items on used trays after flights
Question 2
The typical downstream linkage in Air Chefs’ supply chain would be ... .
1. abattoirs for slaughtering free-range chickens
2. sources of recyclable cutlery on trays
3. passengers enjoying fine cuisine meals
4. halaal kitchens for specific meals
Question 3
The special packaging for meals to ensure freshness and hygiene for passengers is part of ... .
1. inspecting inventory
2. outbound logistics
3. internal distribution
4. production units
Question 4
Which one of the following scenarios would describe benchmarking as part of performance evaluation
in Air Chefs’ purchasing and supply function?
1. Air Chefs has a certified halaal kitchen unit.
2. Modular heat pumps provide warm water efficiently.
3. Compared to Air France, Air Chefs is more efficient in uploading meals before flights.
4. All meat bought are inspected for hygiene purposes when received at the kitchen units.
Question 5
Air Chefs’ kitchen staff have to place an order for soya beans, lentils and lean meat for processing
purposes with the suppliers of these special ingredients. Which one of the following documents should
Air Chefs’ purchasing officer complete for the beans, lentils and meat?
1. material invoice
2. receiving note
3. material list
4. purchasing requisition
Question 6
Select the purchasing and supply objective that can typically be formulated at the operational level of
Air Chefs.
1. analysing inventory
2. developing existing suppliers
3. studying alternative control systems
4. ensuring the availability of purchased requirements
,Question 7
To execute a purchasing transaction, the various steps of the purchasing cycle should be performed.
Which combination of steps should normally take place PRIOR to placing the order with suppliers?
a. awarding the order
b. expediting and contract administration
c. receipt and inspection
d. invoice analysis and payment
e. product (need) identification
f. source identification and selection
g. bidding and negotiation
Choose the correct combination:
1. e f a
2. b c d
3. e f g
4. f g d
Question 8
The product classification matrix consists of strategic, leverage, non-critical and bottleneck items.
Bottleneck items are items that are characterised by ... .
1. high-profit impact and high-supply risk
2. high-profit impact and low-supply risk
3. low-supply risk and low-profit impact
4. high-supply risk and low-profit impact
Question 9
Logistics is considered part of the supply chain process and has more to do with the inbound and
outbound flow and storage of information, material, goods and services within and between
organisations. Select a process that forms part of outbound logistics.
1. receiving
2. internal distribution
3. cross-docking
4. internal inspection
Question 10
The following is one of the functions of supply chain management that are specifically aimed at
managing the processes of delivery across organisational and functional boundaries.
1. process integration
2. cycle time reduction
3. total cost ownership
4. value creation
Question 11
The process of asking for written tenders in purchasing and supply is referred to as ... .
,Question 12
One of the management tasks performed in purchasing with the aim of aligning the activities of the
purchasing and supply functions with those of other business functions is known as ... .
Question 13
Select the statement that represents an example of the objective of strategic purchasing.
1. to ensure the availability of purchased requirements at a competitive price
2. to put together a project team that is responsible for developing suppliers
3. to study the situation in the supplier market and develop technical support for developing suppliers
4. to enter into long-term contracts with reliable suppliers of materials
Question 14
A structure where the purchasing and supply function is performed by different departments,
branches or plants is known as a(n) ... structure.
Question 15
A(n) ... structure exists when an organisation vests the authority of the purchasing and supply function
in one person or a dedicated team.
Question 16
When discussing the product classification matrix, which one of the following statements is FALSE?
1. It is typically found that there are a large number of suppliers of leverage items in the market.
2. Bottleneck items generally have a high supply risk.
3. All products, materials and services can be classified according to two main characteristics of supply
situations, namely supply risk and lead time.
4. Strategic items pose the greatest overall risk to the supply department.
Question 17
Which combination of the following could be considered objectives of purchasing and supply
management?
a. Managing the supply base so that adequate suppliers are available for the current and future
requirements of the organisation.
b. Maintaining the optimum balance of inventory to ensure the desired level of customer service
while minimising inventory holding cost.
c. Ensuring that goods are purchased at the lowest possible cost above all other criteria.
, d. Maintaining and developing the quality of purchased products and services by implementing
quality assurance programmes.
Choose the correct combination:
1. a c
2. b c d
3. b c
4. a b d
Question 18
Which one of the following statements is TRUE about purchasing and supply organisational
structures?
1. Gaining economies of scale is an advantage of a decentralised purchasing and supply structure.
2. A centralised purchasing and supply structure has higher administrative costs than a decentralised
structure.
3. The purchasing and supply department’s negotiating power is increased with a centralised
structure.
4. Decentralised structures offer easier control over the purchasing and supply department.
Question 19
When discussing level-2 supply proficiency, some of the most important measures that can be used
for performance evaluation are pricing proficiency, supplier performance and materials flow. The ... is
a ratio that is used for materials flow measurement.
1. rejection ratio
2. expenditure ratio
3. input ratio
4. promptness factor
Question 20
Which combination of the following factors will positively contribute to increased sales?
a. increased flexibility
b. improved quality
c. increased customer lead time
d. more innovative products
Choose the correct combination:
1. a b c d
2. b d c
3. a b d
4. b d
2015 Semester 1 - Assignment 2
Question 1
Air Chefs offers a wide range of services. Assume that they conclude that the canteen services should
rather be outsourced. Which one of the following situations best describes the possible disadvantage
of the contractor becoming a captive supplier in the Air Chefs context?
1. The market can be saturated with too many canteen catering specialists, leading to fewer business
opportunities for entrepreneurs.
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