Supply Chain Management Quiz

What is the definition of procurement in supply chain management?

• The process of selling goods to customers

• Involves obtaining or buying of goods and services from an external source

• The distribution of products to retailers

• The analysis of market trends

Why is customer satisfaction important in supply chain management?

• It increases the cost of production

• It ensures businesses run out of stock

• It helps businesses meet their own customer requirements

• It reduces the quality of finished goods

What can cause problems for businesses regarding suppliers?

• Suppliers deliver on time

• Suppliers offer low prices

• Suppliers provide high-quality products

• Suppliers have late deliveries

Which factor is NOT considered when choosing suitable suppliers?

• Cost

• Quality

• Color of the supplier's logo

• Speed of delivery

What is the primary role of logistics in a business?

• To increase the production speed

• To manage the movement of goods

• To reduce employee costs

• To enhance marketing strategies

Which of the following is an advantage of the Just-in-Case stock control method?

• Stock is only bought when needed

• No need for a warehouse

• Stock is usually available

• Reduced chance of damage

What is a disadvantage of the Just-in-Time stock control method?

• Need to find storage

• Depend on suppliers

• Bulk purchases available

• Quality of stock can be checked

Why is holding stock important for a business?

• To increase marketing reach

• To keep production going

• To reduce employee turnover

• To enhance customer service

What is the definition of buffer stock?

• The maximum stock level a business can hold

• The amount of stock held between the minimum stock holding and zero stock

• The time taken to deliver an order

• The cost of raw materials

What does lead time refer to in business operations?

• The time taken to manufacture a product

• The time between placing an order and the delivery of that order

• The time taken to restock inventory

• The time taken to process a customer complaint