How often Purchasing and supply management is asked
Where it was asked
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The questions
Oct/Nov 2019, Q571 mark · multiple choice
An extract from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition) explains that Toyota SA's just-in-time (JIT) system is complicated because its suppliers are spread across South Africa and some are even overseas, so inventories need to be kept to cover the risks of buying from suppliers who are far away. Given that inventories are kept to guard against these risks of purchasing from distant suppliers, which one of the following is a disadvantage of holding too much inventory?
Oct/Nov 2019, Q581 mark · multiple choice
Still referring to the Toyota SA case, suppose Toyota decided to abandon its just-in-time (JIT) system and instead adopt a new computer-assisted system designed to keep inventory at minimum levels. Which system would Toyota then be using?
Oct/Nov 2019, Q591 mark · multiple choice
The extent to which the purchasing and supply function contributes to profitability varies from one business to another. In which one of the following situations would purchasing, as a factor influencing profitability, be less critical yet still remain important?
Oct/Nov 2019, Q601 mark · multiple choice
Tebogo is the purchasing and supply manager at Cross Pharmacy, a large national chain of pharmacies. One of his key performance areas involves managing the purchasing and supply function for the future, which includes safeguarding materials provisions and developing supplier sources. At which level of purchasing and supply planning is Tebogo operating?
Oct/Nov 2019, Q611 mark · multiple choice
Tebogo has negotiated a contract with a French beauty brand giving Cross Pharmacy exclusive rights to distribute its products in South Africa. To manage this new product line, Tebogo, based at Cross Pharmacy's head office, will handle all purchasing for these products himself. This new arrangement does not affect the purchasing of other beauty brands that the pharmacies stock, and each branch will continue to manage its own purchases of those other brands as before. Which type of purchasing and supply structure does this describe?
Oct/Nov 2019, Q621 mark · multiple choice
Fill in the missing term: ____________ allocate the responsibility for buying a specific material or service to a specific person.
Oct/Nov 2019, Q631 mark · multiple choice
Mavis is the marketing manager at Mars Plastics and serves on a cross-functional purchasing team set up for the company's toy division. The team consists of members from the finance department, the purchasing and supply department, and Mars Plastic's main toy supplier, Kidz R Us. Which one of the following would be a reason for including Kidz R Us in this cross-functional team at Mars Plastics?
Oct/Nov 2019, Q641 mark · multiple choice
To assess the management performance of the cross-functional team on which Mavis serves, Mars Plastics has drawn up an evaluation sheet. Which one of the following options would be included on that evaluation sheet when assessing management performance?
Oct/Nov 2019, Q651 mark · multiple choice
Mankhubu, the purchasing and supply manager, also sits on Mavis's cross-functional team and is responsible for assessing the team's purchasing and supply activities. Which control point should Mankhubu use to evaluate the effectiveness of inventory-holding?
Oct/Nov 2019, Q661 mark · multiple choice
Which one of the following is the most general method used to describe quality?
Oct/Nov 2019, Q671 mark · multiple choice
Which one of the following statements applies to the cyclical ordering system?
Oct/Nov 2019, Q681 mark · multiple choice
By owning its own steel supplier, Hyundai Steel, Hyundai is able to save on purchasing costs. This saving, since purchasing costs make up a major portion of Hyundai's total cost, offers greater profit potential for the company than an equivalent increase in sales would. Which purchasing and supply concept is being described here?
Oct/Nov 2019, Q691 mark · multiple choice
Inbus Ltd is looking for an IT company to develop a software program tailored to the company's specific needs. Which price determination method should be used to identify a suitable IT service provider capable of developing this customised program?
Oct/Nov 2019, Q701 mark · multiple choice
Fill in the missing term: a ____________ is compiled during the second step of the purchasing cycle, namely the choice of suppliers.
May/Jun 2019, Q571 mark · multiple choice
An extract from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition) explains that in modern organisations such as Toyota, the purchasing function forms an inherent and integrative part of an integrated supply chain. This supply chain consists of purchasing (inputs or sourcing), the operational process (assembling or transformation), and the distribution of half-finished or finished consumer goods. Based on this extract, maintaining Toyota's purchasing and supply system takes place at which level of purchasing and supply planning?
May/Jun 2019, Q581 mark · multiple choice
Using the same Toyota extract (which describes the purchasing function as an integrative part of an integrated supply chain comprising purchasing, the operational process, and distribution of goods), at which level of purchasing and supply planning does supply-chain process integration occur at Toyota?
May/Jun 2019, Q591 mark · multiple choice
Still drawing on the Toyota extract, the purpose of Toyota's purchasing and supply function is not only to supply the right materials, services and equipment, but also to do something further. Which of the following correctly completes this statement about the additional purpose of Toyota's purchasing and supply function?
May/Jun 2019, Q601 mark · multiple choice
Consider the four scenarios below and decide in which one purchasing, viewed as a factor influencing profitability, would be more critical than usual.
May/Jun 2019, Q611 mark · multiple choice
Vicki is the regional buyer for Black Cat Pet stores in Gauteng. She prefers to purchase a greater volume of cat food from her preferred supplier, Munchkins, because this results in lower inventory levels and lower prices, since Munchkins offers her a discount for volume orders. This benefit is an advantage of a certain concept, which is only possible under a particular type of purchasing and supply structure. Which combination of terms correctly completes the statement: 'This is an advantage of ___, which is possible with a ___ purchasing and supply structure'?
May/Jun 2019, Q621 mark · multiple choice
Kgaugelo owns an organic food store in Newlands. Because the store is new and quite small, she does not currently have a dedicated purchasing and supply manager. Apart from the size of the business, which one of the following is another factor Kgaugelo would use to determine the importance of the purchasing and supply function?
May/Jun 2019, Q631 mark · multiple choice
With regard to the internal organisation of the purchasing and supply function, a certain arrangement is used when each person takes responsibility for buying a specific material or service. Which term correctly completes the statement: '___ are used when each person takes responsibility for buying a specific material or service'?
May/Jun 2019, Q641 mark · multiple choice
Which one of the following represents a level at which co-ordination of the purchasing and supply function occurs?
May/Jun 2019, Q651 mark · multiple choice
Moses works for Studio Grant, an interior design company that also manufactures custom-made pieces for clients. As the purchasing and supply manager, he is responsible for buying the materials required to produce these bespoke pieces. Which measure could Moses adopt to ensure that purchasing and supply objectives are pursued within acceptable standards?
May/Jun 2019, Q661 mark · multiple choice
Moses uses the control point of price proficiency to determine whether purchasing activities are being performed effectively. Which one of the following would he use to determine the effectiveness of price proficiency?
May/Jun 2019, Q671 mark · multiple choice
Carol is the quality controller for J'Divine, a popular wedding photography business. It is her responsibility to ensure that the photo books sent out to customers meet stringent quality requirements. Carol uses one tool to describe the required quality of the books and another tool to control the quality of the photo books. Which pair of terms correctly completes the statement: 'Carol makes use of ___ to describe the required quality of the books and ___ to control the quality of the photo books'?
May/Jun 2019, Q681 mark · multiple choice
Michael is a contractor who owns his own home renovations business, Let's Build. He currently has two work teams that can each manage their own projects. However, Michael has realised that some of his projects run over budget, and to counter this he has decided to initiate a cost-reduction plan. Which one of the following purchasing and supply objectives would be appropriate given Michael's new business objective?
May/Jun 2019, Q691 mark · multiple choice
Which one of the following is a disadvantage of holding too little inventory?
May/Jun 2019, Q701 mark · multiple choice
The purchasing process consists of several steps. During which step would the materials be taken up as inventory?
Oct/Nov 2018, Q571 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Several worldwide recalls have shown that Toyota rushed into relationships with suppliers who were not adequately vetted, making supplier alliances and supplier development crucial issues to address. At which level of purchasing and supply planning would supplier alliance and supplier development take place?
Oct/Nov 2018, Q581 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Suppose Toyota adopts a new purchasing and supply objective of actively seeking out or developing new suppliers. Which of the following would be a suitable business objective for Toyota to pursue in support of this purchasing and supply objective?
Oct/Nov 2018, Q591 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Because Toyota is actively pursuing cost leadership, it would benefit from standardisation, which offers significant cost-saving advantages. Given this emphasis on standardisation, which purchasing and supply structure would be the most appropriate for Toyota to adopt?
Oct/Nov 2018, Q601 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Given Toyota's current difficulties with its suppliers, it might seem sensible to hold more inventory on hand to prevent stock-outs. However, holding too much inventory also has drawbacks. Which of the following is a disadvantage of keeping too much inventory?
Oct/Nov 2018, Q611 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Because executing a cost-leadership strategy over the past few years has led Toyota into relationships with suppliers it did not adequately vet, supplier selection must be treated as an ongoing process applied with discretion to prevent recalls. Once a supplier has been chosen, its performance must be continuously and objectively evaluated. Why is the objective evaluation of supplier performance important?
Oct/Nov 2018, Q621 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Kgaugelo runs an organic food store in Newlands. None of his produce is pre-packaged, and customers are expected to bring their own containers. Because prices are based on the weight of produce a customer selects, the quantities purchased vary considerably. To help control inventory, Kgaugelo and his staff perform stocktaking at the end of every week for each product in the store, and order quantities are then adjusted to match what is available. Which inventory-control system would be most suitable for this scenario?
Oct/Nov 2018, Q631 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Organisations maintain relationships with suppliers of varying nature, and an alliance or partnership represents a high-involvement relationship. Which of the following would be an attribute of strategic-supplier alliances?
Oct/Nov 2018, Q641 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Gabi, regarded as one of the best rehabilitation physiotherapists in South Africa, dreams of building a state-of-the-art rehabilitation centre for victims of motor vehicle accidents. The first step is to determine the construction price she will need for the centre. The centre will be custom-built to Gabi's exact specifications and, although it will carry a high monetary value, there is ample time available for the process to be completed. Gabi has already identified several suppliers in the market who are in serious competition with one another, and she intends to issue a request only to those suppliers she has identified. Which price determination process should Gabi use for her rehabilitation centre?
Oct/Nov 2018, Q651 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. The timing of purchases often determines the price paid for materials. The purpose of buying at the right time is to do which of the following?
Oct/Nov 2018, Q661 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. When the supply market takes the form of a monopoly or an oligopoly, negotiation needs to occur at a high level. This requirement influences which level of the purchasing and supply function within the organisational structure?
Oct/Nov 2018, Q671 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. During the first step of the purchasing process, the need for materials is communicated by means of which document?
Oct/Nov 2018, Q681 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. If a company evaluates the effectiveness of its purchasing and supply activities by counting the number of rejected orders, on what basis is it assessing those activities?
Oct/Nov 2018, Q691 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Engineer & Design has been contracted to prepare engineering drawings for the new rotor-motor engine that Yanmar Electronics will supply to Seascape Boats. The engine will be used exclusively in Seascape Boats' new range of luxury catamarans. The engineering drawings represent which form of quality management?
Oct/Nov 2018, Q701 mark · multiple choice
Questions 57 to 61 relate to an extract taken from the business case 'Purchasing and supply chain management: Toyota' (Business Cases, 2nd edition). The extract explains that Toyota gradually moved away from the principles of lean manufacturing. Its pursuit of cost leadership and market leadership went too far, blurring the differentiation that used to come from quality, reliability and fuel efficiency. Executing this cost-leadership strategy over the past few years has pushed Toyota into relationships with suppliers that were not properly vetted, and questionable security measures were applied as parts were sourced from suppliers all over the world. Which type of cost includes the cost of storage, the salaries of warehouse staff, and wear and tear?
May/Jun 2018, Q571 mark · multiple choice
Read the extract taken from the business case 'Purchasing and supply chain management: Toyota': The global automotive industry is the largest manufacturing sector in the world, with industry output equivalent to the world's sixth largest economy. It draws on a wide range of supplier industries, from raw materials (such as steel, aluminium, plastics and chemicals) through to sophisticated component assemblies, tooling, design and engineering services. Given that the global automotive industry is the largest manufacturing sector in the world, it follows that the purchasing and supply management function becomes increasingly important for automotive manufacturers such as Toyota. Identify which one of the listed options represents a factor that will determine the importance of the purchasing and supply function within an organisation.
May/Jun 2018, Q581 mark · multiple choice
Continuing with the Toyota extract about the automotive industry drawing on a wide range of supplier industries (from raw materials through to sophisticated component assemblies, tooling, design and engineering services): because savings in purchasing costs make up a major portion of an automotive manufacturer's total cost, such savings produce a greater profit potential than an equivalent increase in sales. Identify the term used to describe this phenomenon.
May/Jun 2018, Q591 mark · multiple choice
Still referring to the Toyota case, since the automotive industry draws on a wide range of supplier industries, the planning process must include elements such as supplier alliances, supplier development and supply-chain process integration. Determine at which level of purchasing and supply planning these elements will occur.
May/Jun 2018, Q601 mark · multiple choice
Continuing with the Toyota case, the automotive industry requires a variety of raw materials, including steel, aluminium, plastics and chemicals, making inventory management an important aspect of the purchasing and supply management function for automotive manufacturers such as Toyota. Identify the correct description of the aim of inventory management.
May/Jun 2018, Q611 mark · multiple choice
Mustafa owns an electronic equipment chain store called E-Connect, which currently has nine stores across South Africa, one located in each province. To keep distribution costs down, purchases are made from a number of local suppliers. Determine which type of purchasing and supply structure would best suit E-Connect.
May/Jun 2018, Q621 mark · multiple choice
Michael is a contractor who owns his own home renovations business called Let's Build. He currently has two work teams, each managing their own projects. However, Michael has noticed that some of his projects run over budget, and to counter this he has decided to initiate a cost-reduction plan. Identify which purchasing and supply objective would be appropriate given Michael's new business objective.
May/Jun 2018, Q631 mark · multiple choice
There are four main issues that need to be addressed when organising the purchasing and supply function. Identify which one of the listed options represents such an issue.
May/Jun 2018, Q641 mark · multiple choice
The purchasing and supply function can be divided into a particular arrangement in which each person takes responsibility for buying a specific material or service. Identify the term that describes this arrangement.
May/Jun 2018, Q651 mark · multiple choice
The use of cross-functional teams is an important practice in purchasing and supply. Identify which one of the listed options is an objective of using cross-functional sourcing teams.
May/Jun 2018, Q661 mark · multiple choice
Determine which one of the listed options correctly applies to the cyclical ordering system.
May/Jun 2018, Q671 mark · multiple choice
Sarah owns a boutique called RunFast, which sells high-end running apparel. She recognises that there is a fine line between holding too much inventory and holding too little inventory. Identify which one of the listed options is a disadvantage of having too much inventory.
May/Jun 2018, Q681 mark · multiple choice
During recessions, a favourable buyers' market exists and materials can be bought at lower prices. Identify which factor influencing the scheduling of purchases this situation is an example of.
May/Jun 2018, Q691 mark · multiple choice
Identify the term for the quick and informal method used for both standard materials and non-standard materials with a high value.
May/Jun 2018, Q701 mark · multiple choice
Purchasing and supply consist of several steps or cycles. Identify which one of the listed options is generally considered to be the first step in the purchasing process.
May/Jun 2015, Q571 mark · multiple choice
Edgars is described as the leading retailer of clothing, footwear, textiles and accessories in Southern Africa, and as the leading national distributor of top global brands and merchandise ranges that are exclusive to Edgars. If Edgars wants to place its stock orders far in advance, based on sales forecasting, which inventory-control system would be most suitable for it?
May/Jun 2015, Q581 mark · multiple choice
Edgars, the leading retailer of clothing, footwear, textiles and accessories in Southern Africa and leading national distributor of top global brands and merchandise ranges exclusive to Edgars, places great importance on constant communication with its suppliers and their operational staff. At which level of purchasing and supply planning does this kind of constant communication take place?
May/Jun 2015, Q591 mark · multiple choice
During 2014 a decision was taken to introduce VAT on all electronic material, which effectively reduced the purchasing power of higher-education libraries by 40%, leaving fewer resources available for students, lecturers and researchers. To counteract the effect of this VAT, it was proposed that the Department of Higher Education and Training and the Department of Science and Technology jointly purchase critical online information resources as a national resource, to be distributed to the libraries affected. This proposal is an example of a blank purchasing structure.
May/Jun 2015, Q601 mark · multiple choice
Rexor Pty is busy planning its purchasing and supply activities for the coming two years. Which one of the following options would qualify as a purchasing and supply objective?
May/Jun 2015, Q611 mark · multiple choice
Engineer & Design has been contracted to produce engineering drawings for a new rotor-motor engine that Yanmar Electronics will supply to Seascape Boats, for exclusive use in Seascape Boats' new range of luxury catamarans. These engineering drawings represent a form of quality blank.
May/Jun 2015, Q621 mark · multiple choice
As order quantities increase, ordering costs blank while carrying costs blank.
May/Jun 2015, Q631 mark · multiple choice
Within the purchasing and supply cycle, stores reception forms part of the blank step, while the filing of documentation forms part of the blank step.
May/Jun 2015, Q641 mark · multiple choice
The practice of allowing a purchaser to work together on a team with colleagues from other functional management areas, so as to carry out various tasks such as supplier selection and the development of cost-reduction strategies, is known as blank teams.
May/Jun 2015, Q651 mark · multiple choice
A blank is accompanied by a lengthy procedure that must be strictly followed. It is suitable for purchasing custom-made materials of high monetary value in situations where there are many suppliers competing actively and seriously with one another in the market.
May/Jun 2015, Q661 mark · multiple choice
Brewing beer is by nature a water-intensive process. By reducing the amount of water SAB uses to brew its beer, the company lowers its purchasing costs, and this reduction in purchasing costs leads to a greater increase in profit potential than an equivalent increase in beer sales would produce. This effect is known as blank.
May/Jun 2015, Q671 mark · multiple choice
Negotiation in purchasing is described as a comprehensive process. In which of the following situations is negotiation mainly used: (a) where the supplier holds a strong market position; (b) where there are many suppliers in the market; (c) where transactions are of a high monetary value; (d) where the contract conditions are complex?
May/Jun 2015, Q681 mark · multiple choice
Various factors affect the timing of purchases. For example, the price of coffee is set by the relationship between the amount of coffee available for sale and the amount that people wish to buy (supply and demand). This is an example of a blank, which is an blank factor influencing the scheduling of purchases.
May/Jun 2015, Q691 mark · multiple choice
Smart Computers is a large company with many branches spread across South Africa, and each branch buys its own stock from local suppliers. What is an advantage of the purchasing and supply structure that Smart Computers uses?
May/Jun 2015, Q701 mark · multiple choice
Smart Computers understands how important it is to control its purchasing and supply function. Which one of the following would serve as a control point to measure the effectiveness of Smart Computers' purchasing and supply activities?
Oct/Nov 2014, Q571 mark · multiple choice
For this question, study the extract from case study 3, 'Innovation and technology': Crocs are not made of plastic or rubber. They are made of an extraordinary impact-absorbing resin material developed for maximum cushioning; its properties resist odour, inhibit bacterial and fungal growth, and are non-toxic, and people with troubled feet and knees appreciate its benefits and versatile styles. The special resin materials from which Crocs are made need to be sourced well in advance to ensure that enough material is available for production. At which level of purchasing and supply planning is this kind of availability forecasting carried out?
Oct/Nov 2014, Q581 mark · multiple choice
Using the same Crocs extract described above (the special resin material that is impact-absorbing, odour-resistant, non-toxic and inhibits bacterial and fungal growth), consider that the Crocs Company can use several criteria to measure the effectiveness of its purchasing and supply activities. If the company monitors the number of orders and requisitions for the special resin compound placed with its supplier, what are they measuring?
Oct/Nov 2014, Q591 mark · multiple choice
Bronwyn works as the retail buyer for Askan Fashions, a chain store selling affordable clothing. She uses an inventory-control system that delivers merchandise to regional stores in exactly the amount required and at the precise time it is needed. Askan Fashions' suppliers restock inventory based on actual product usage and stock-level information that Bronwyn provides to them. Which type of inventory control system does Askan Fashions use?
Oct/Nov 2014, Q601 mark · multiple choice
Consider an organisation such as Toyota, which has a head office, various business units and several plants, and therefore has a number of options available when deciding on an organisational structure for purchasing and supply. If each plant and each branch at Toyota carries out its own purchasing independently, what type of purchasing and supply structure does Toyota have?
Oct/Nov 2014, Q611 mark · multiple choice
The just-in-time (JIT) system used at Toyota SA is made more complicated by the fact that some of its suppliers are located overseas. What is needed to make a JIT system work effectively under these circumstances?
Oct/Nov 2014, Q621 mark · multiple choice
During 2011, Hyundai made use of an $8 billion capital investment in Hyundai Steel to expand capacity for more innovative and modern blast furnaces. The main reason for bringing in this new supplier was to produce higher-density steel and, as a result, more fuel-efficient vehicles. Quality control was therefore important, since Hyundai had to make sure that its vehicles were indeed fuel-efficient. Which method did Hyundai use to control the quality of its new supplier?
Oct/Nov 2014, Q631 mark · multiple choice
Match each step in the purchasing cycle, listed in column A, with the document required for that step, listed in column B. Column A lists: (a) development and description of need; (b) issuing the order; (c) paying the order; and (d) closing the order. Column B lists the documents: (i) cheque; (ii) requisition; (iii) specifications; and (iv) proof or receipt. Choose the option that correctly matches each step with its document.
Oct/Nov 2014, Q641 mark · multiple choice
Toyota has realised that it is holding too much inventory in one of its warehouses. Which of the following would be a disadvantage of carrying too much inventory?
Oct/Nov 2014, Q651 mark · multiple choice
Which one of the following items is regarded as an inventory-carrying cost?
Oct/Nov 2014, Q661 mark · multiple choice
With regard to quality requirements, the engineers and designers working on Toyota vehicles would regard ________ factors, such as job performance and reliability, as the most important, and would therefore require the highest-quality materials for these factors. Which word correctly completes this statement?
Oct/Nov 2014, Q671 mark · multiple choice
The purchasing process consists of several steps. During which step of this process would the materials be taken up as inventory?
Oct/Nov 2014, Q681 mark · multiple choice
A buyer is most likely to obtain the most favourable price for materials by doing which one of the following?
Oct/Nov 2014, Q691 mark · multiple choice
Which one of the following factors would help to determine how important the purchasing and supply function is within an organisation?
Oct/Nov 2014, Q701 mark · multiple choice
Cross-functional sourcing teams play an important role in purchasing and supply activities. In which one of the following activities are cross-functional sourcing teams typically used?
May/Jun 2014, Q571 mark · multiple choice
According to case study 9 on Toyota's purchasing function, Toyota aims to keep its inventory to a minimum by using the JIT (just-in-time) system: nothing is produced until the customer requests it, and thereafter nothing is purchased until the production process begins and materials are requested from the supplier - materials are therefore 'pulled' from their source and never 'pushed' into the process. Given that Toyota purchases material only just before it is needed, and that this approach is especially effective during boom periods when economic activity is high, complete the statement: this works well provided that...
May/Jun 2014, Q581 mark · multiple choice
Still referring to the Toyota case study on the JIT purchasing system used across its operations, identify which one of the following external factors will influence the scheduling of Toyota's purchasing.
May/Jun 2014, Q591 mark · multiple choice
Carol works as the quality controller for J'Divine, a popular wedding photography business, and it is her job to make sure that the photo books sent out to customers meet strict quality requirements. Complete the sentence: Carol makes use of ___ to describe the required quality of the books, and ___ to control the quality of the photo books.
May/Jun 2014, Q601 mark · multiple choice
Printmate's, a large printing company, undertakes planning at a certain level that involves elements such as supplier alliances, supplier development, supply chain process integration, availability forecasting, and purchasing and supply policy. At which level is this planning taking place?
May/Jun 2014, Q611 mark · multiple choice
Marcus owns a large warehouse that rents out storage space to companies. The fee that Annabella Boutique pays Marcus to store its excess summer stock during the winter season is known as which type of cost?
May/Jun 2014, Q621 mark · multiple choice
From the end of August 2013, Edgars will stock a new international brand in some of its stores called Paul Frank, a fun, vibrant and edgy apparel range. Edgars has chosen Paul Frank Industries as the supplier for this new summer range, having researched the prices and availability of various ranges. An order has already been issued and a contract concluded. What would the next step in the purchasing process be?
May/Jun 2014, Q631 mark · multiple choice
Inbus Ltd needs an IT company to develop a software program tailored to its very specific needs, and this development is expected to be a costly process. Which price determination method should Inbus Ltd use to identify a potential IT service provider capable of developing this customised programme?
May/Jun 2014, Q641 mark · multiple choice
The purchasing manager of a toy company has decided that whenever the stock of Snow White Barbie dolls drops to only 20 units, an order for 50 new Barbie dolls will be placed. Which inventory control system does this describe?
May/Jun 2014, Q651 mark · multiple choice
Complete the statement: the aim of inventory management is to ___.
May/Jun 2014, Q661 mark · multiple choice
Identify which one of the following statements about a cross-functional team is INCORRECT.
May/Jun 2014, Q671 mark · multiple choice
Telkom's head office negotiates large contracts with suppliers of copper cable to be used across South Africa, while its regional offices independently buy non-strategic items such as tools from local suppliers. Complete the statement: they are using a ___ purchasing and supply structure.
May/Jun 2014, Q681 mark · multiple choice
Consider the following possible criteria for gauging the effectiveness of the execution of purchasing activities: (a) the number of purchasing contracts established; (b) noting rejected orders; (c) comparing costs with those of previous periods; (d) investigating the number of orders and requisitions. Which combination of these represents valid criteria for gauging effectiveness?
May/Jun 2014, Q691 mark · multiple choice
Identify which one of the following will be a factor when determining the importance of the purchasing and supply chain function.
May/Jun 2014, Q701 mark · multiple choice
Complete the statement: the profit leverage effect dictates that a ___.
Oct/Nov 2013, Q571 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Toyota is described as having a very mature approach to its purchasing activities, which is reflected in its bottom line (drawn from case study 9 in Business Cases). Its cost-reduction techniques are recognised worldwide. At which level of purchasing and supply planning are such cost-reduction techniques decided upon?
Oct/Nov 2013, Q581 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Following the 2010 vehicle recalls, Toyota would have needed to evaluate its purchasing and supply management team (drawn from case study 9 in Business Cases). Which combination of the listed items would form part of this assessment: (a) leadership demonstrated in introducing new ideas; (b) the number of rental contracts established; (c) the knowledge and skills needed to lead the purchasing and supply function; (d) relationships built with strategic competitors; (e) appropriate purchasing and supply policies?
Oct/Nov 2013, Q591 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Which of the following is regarded as the most general method used to describe quality?
Oct/Nov 2013, Q601 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Dairy Belle Cheese & Butter Ltd operates a 'just-in-time' inventory system. While the company is in the process of investigating possible suppliers, which one of the following factors would be most valuable to it?
Oct/Nov 2013, Q611 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. A six percent (6%) reduction in purchasing costs can make the same contribution to profitability as a twenty percent (20%) increase in sales. What is this phenomenon referred to as?
Oct/Nov 2013, Q621 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. If a purchaser already has a complete list of suppliers, what would be the most suitable way to carry out price determination?
Oct/Nov 2013, Q631 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Norman owns an ice cream store in Margate and knows that, during summer, from November to January, he needs to order more ice cream every week. Which one of the following inventory systems would be best suited to Norman's ice cream store?
Oct/Nov 2013, Q641 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Toyota aims to keep its inventory to a minimum by making use of the JIT (just-in-time) system (drawn from case study 9 in Business Cases). Holding either too much or too little inventory carries disadvantages for an organisation. Which of the following would be a disadvantage for Toyota if it were to hold too much inventory?
Oct/Nov 2013, Q651 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. The cost of storage together with the salaries paid to warehouse staff can be classified as which type of cost?
Oct/Nov 2013, Q661 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Which type of purchasing and supply structure is particularly suited to a business made up of geographically dispersed plants, where purchases are made from a variety of geographically dispersed suppliers?
Oct/Nov 2013, Q671 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. The popular Afrikaans women's magazine (printed on the page as 'Sane', likely a scanning error for 'Sarie') decides to implement a vertical strategy in its supply chain. Under this strategy, the manufacturer (the printers of the magazine) will aim to supply its retail customers with exact quantities of magazines on a continuous basis with minimal lead times, resulting in minimum inventory levels throughout the retail supply chain and saving a large amount of paper. Which one of the following inventory-control systems would the magazine need to implement to achieve this outcome?
Oct/Nov 2013, Q681 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Woolworths assesses its suppliers using standard key performance indicators (KPIs), namely cost, quality, delivery and environmental issues, with cost being the most important factor to Woolworths. If Woolworths needed to choose a new supplier, what would be the first step in the supplier selection process?
Oct/Nov 2013, Q691 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Which combination of the following failures are typical failures that occur in operations processes: (a) facility failures; (b) design failures; (c) staff failures; (d) customer failures?
Oct/Nov 2013, Q701 mark · multiple choice
This section of the multiple-choice paper (14 questions, 1 mark each, totalling 14 marks) tests purchasing and supply management concepts, several of which are based on case studies from the prescribed Business Cases book. Arrange the last four basic steps in the purchasing cycle in the correct order, given the following steps: (a) receipt, distribution and inspection; (b) handling errors and discrepancies; (c) closing the order; (d) paying for the order.
The full Spot Map and the marks by year.