MGT 1163 : Session 3 2023/2024

The movement of products from one location to another as it makes its way from the beginning of a supply chain to the customer's hands is referred to as ____________.

• retailing

• distribution

• transportation

• manufacturing

The following are the purposes of the Bill of Lading, except

• It is used by customs to determine the value of the goods.

• It is the contract of carriage between shipper and the carrier.

• It is the receipt for goods provided by the carrier.

• It is a certificate on the title of ownership.

If a truck was crossing a border into a different country and was stopped by authorities, what document should the driver show to prove ownership?

• Freight bill

• Bill of Lading

• Shipment manifest

• Commercial invoice

Which of the following is an example of inventory service cost?

• Unloading the raw materials from rail cars and store them outside.

• The premium insurance Imposed due to risk of damage Inventory.

• Borrowing of money from external sources to fund operations.

• The price falling of fresh fruits and vegetables over time.

Inventory risk cost is the situation where __________________________________.

• product is at risk of loss or damage which might require high insurance

• product such as lighting is moved into and out of inventory

• goods are held in storage for long periods of time, and it might become obsolete

• capital is tied up in inventory and resulting in lost opportunity from investment

Which of the following is not a need for a warehouse?

• Quick supply of goods

• Small scale production

• Large scale production

• Seasonal production of goods

The risks of inventory loss and damage are minimal in contract warehousing because __________________________________.

• it requires more in-depth negotiations than public warehouse to secure

• it provides the warehouse customer greater control than private warehousing

• it demonstrates a greater commitment to customers than buying a private warehouse

• it allows the company a degree of control yet is less expensive than private warehouse

Public warehousing makes more sense than private warehousing when

• volume is low with high variability in demand and significant seasonality.

• Customer service requirements are low and market density is high.

• volume is high and very predictable with little variation in demand.

• customers are close to our facility and products are not seasonal.

Which of the following type of warehouse is situated at airports and seaports?

• Public warehouses

• Private warehouses

• Bonded warehouses

• Contract warehouses

Which of the following is not an objective of procurement?

• Technology and innovation.

• Quality improvement.

• Lowest total cost of ownership.

• Maximum inventory investment.