PURCHASING & LOGISTICS EXAM FULLY SOLVED #8
What is the link between logistics and purchasing? - correct answer Purchasing is when
a business or organisation attempts to acquire goods or services to accomplish the
goals of its enterprise
Logistics is coordinating and moving resources-people, materials, inventory and
equipment from one location to store at the delivered destination
Everything starts from the purchasing and moves and reaches final destination by
logistics
Part of logistics concept - correct answer Marketing Mix
What is customer service? - correct answer It's the output of the logistics system
Demand forecasting - correct answer A decision process in which managers predict
demand patterns
EDI systems - correct answer Electronic data interchange
EFT system - correct answer A computerized system that electronically performs
financial transactions such as making purchases, paying bills, and receiving paychecks.
Procurement - correct answer Supplier selection, negotiation of price,
Supplier quality assessment
Procurement Process - correct answer Procurement is the purchase of materials and
service from outside organisations to support the firm's operations from production to
marketing, sales, and logistics
Reverse flow logistics - correct answer Recycling, reusing and disposal activities.
Returns may take place because of a problem with the performance of the item or
simply because of the customer changed his or her mind.
Return goods handling is complex and costly.
The cost of moving a product backward nearly as much as
Nine times as high as moving the same product forward
Warehousing - correct answer receiving, storing , shipping goods
Warehouse layout, design, ownership, automation
, What is the future challenges in logistics? - correct answer TQM(total quality
management), JIT(just in time), QR(quick response), ECR(efficient consumer
response), Green marketing, accounting for logistics costs
You learned about the relationship between logistics, marketing and production. Explain
this relationship in max 8 lines. - correct answer Logistics and marketing are
complementary business operations that enable a company to ensure that it can offer
the right products to the right customers in the right place. Place is one of the five P's of
marketing.
By coordinating logistics and marketing, companies can build the highest levels of
customer satisfaction.
What are the types of inventory for a company? - correct answer 1)Raw materials &
purchased parts
2)Partially completed goods called: work-in-progress
3)Finished-goods inventories
4)
Mention 4 functions of inventory - correct answer 1)To meet anticipated demand
2)To smooth production requirements
3)To decouple operations
4)To protect against 'stock-outs' (buffer)
5)To take advantage of order cycles
6)To help hedge against price increases
7)To permit operations
8)To take advantage of quantity discounts
JIT management - correct answer Only produce what's needed
Minimize transit time
There is no reserve stock ( buffer stock)
Buffer stock - correct answer extra inventory held to guard against uncertainty in
demand or supply
Just in case (JIC) management - correct answer There is buffer stock
What is lead time? - correct answer time interval between ordering and receiving the
order
How lead time impacts just in time management? - correct answer Lead time is
important because it affects the efficiency of just in time from the supplier to the
customer. If lead time is small then there will be enough stock for every order made
What is cycle stock? - correct answer Components or products that are received in bulk
by a downstream partner, gradually used up, and then replenished again in bulk by an
upstream partner.(materials we have in stock to meet customer demand)
What is the link between logistics and purchasing? - correct answer Purchasing is when
a business or organisation attempts to acquire goods or services to accomplish the
goals of its enterprise
Logistics is coordinating and moving resources-people, materials, inventory and
equipment from one location to store at the delivered destination
Everything starts from the purchasing and moves and reaches final destination by
logistics
Part of logistics concept - correct answer Marketing Mix
What is customer service? - correct answer It's the output of the logistics system
Demand forecasting - correct answer A decision process in which managers predict
demand patterns
EDI systems - correct answer Electronic data interchange
EFT system - correct answer A computerized system that electronically performs
financial transactions such as making purchases, paying bills, and receiving paychecks.
Procurement - correct answer Supplier selection, negotiation of price,
Supplier quality assessment
Procurement Process - correct answer Procurement is the purchase of materials and
service from outside organisations to support the firm's operations from production to
marketing, sales, and logistics
Reverse flow logistics - correct answer Recycling, reusing and disposal activities.
Returns may take place because of a problem with the performance of the item or
simply because of the customer changed his or her mind.
Return goods handling is complex and costly.
The cost of moving a product backward nearly as much as
Nine times as high as moving the same product forward
Warehousing - correct answer receiving, storing , shipping goods
Warehouse layout, design, ownership, automation
, What is the future challenges in logistics? - correct answer TQM(total quality
management), JIT(just in time), QR(quick response), ECR(efficient consumer
response), Green marketing, accounting for logistics costs
You learned about the relationship between logistics, marketing and production. Explain
this relationship in max 8 lines. - correct answer Logistics and marketing are
complementary business operations that enable a company to ensure that it can offer
the right products to the right customers in the right place. Place is one of the five P's of
marketing.
By coordinating logistics and marketing, companies can build the highest levels of
customer satisfaction.
What are the types of inventory for a company? - correct answer 1)Raw materials &
purchased parts
2)Partially completed goods called: work-in-progress
3)Finished-goods inventories
4)
Mention 4 functions of inventory - correct answer 1)To meet anticipated demand
2)To smooth production requirements
3)To decouple operations
4)To protect against 'stock-outs' (buffer)
5)To take advantage of order cycles
6)To help hedge against price increases
7)To permit operations
8)To take advantage of quantity discounts
JIT management - correct answer Only produce what's needed
Minimize transit time
There is no reserve stock ( buffer stock)
Buffer stock - correct answer extra inventory held to guard against uncertainty in
demand or supply
Just in case (JIC) management - correct answer There is buffer stock
What is lead time? - correct answer time interval between ordering and receiving the
order
How lead time impacts just in time management? - correct answer Lead time is
important because it affects the efficiency of just in time from the supplier to the
customer. If lead time is small then there will be enough stock for every order made
What is cycle stock? - correct answer Components or products that are received in bulk
by a downstream partner, gradually used up, and then replenished again in bulk by an
upstream partner.(materials we have in stock to meet customer demand)
