r'ifiitllbifl UNIVERSITY

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1 r'ifiitllbifl UNIVERSITY OF SCIENCE RI'ID TECHI IOLOGY FACULTY OF MANAGEMENT SCIENCES DEPARTMENT OF MARKETING AND LOGISTICS QUALIFICATION: BACHELOR OF LOGISTICS & SUPPLY CHAIN MANAGEMENT BACHELOR OF TRANSPORT MANAGEMENT QUALIFICATION CODE: 07BLSC 07BTMM LEVEL: 5 COURSE CODE: FLMSlZS COURSE NAME: FUNDAMENTALS OF LOGISTICS MANAGEMENT SESSION: NOVEMBER 2017 PAPER: THEORY DURATION: 3 HOURS MARKS: 100 FIRST OPPORTUNITY EXAMINATION QUESTION PAPER EXAMINER(S) Dr. Fanny Saruchera Ms. Hilma N. Kotti Ms. Gloria Tshoopara Ms. Emily Salomo MODERATOR: DR. FRANK MULUNGU INSTRUCTIONS ANSWER ALL QUESTIONS WRITE NEATLY AND LEGIBLE NUMBER YOUR ANSWERS CORRECTLY THIS QUESTION PAPER CONSISTS OF 05 PAGES (Including this front page)

2 QUESTION 1: MULTIPLE CHOICE QUESTIONS [2x15] 1.1 Logistics is an integral part of supply chain management. Which explanation best represents outbound logistics? a) The management of material resources entering an organisation from its suppliers and other partners b) The management of resources supplied from an organisation to its customers and intermediaries c) An emphasis on using the supply chain to deliver value to customers who are actively involved in product and service specification d) A supply chain that emphasises distribution of a product to passive customers 1.2 Logistics is the part of a supply chain involved with the forward and reverse flow of... a) goods b) services c) cash d) all of the above 1.3 Which of the following is an example of reverse logistics? a) direct store delivery b) vendor-managed inventory (VMl) c) source tagging d) handling of returns 1.4 Independent service provider of logistics who can do all functions required by clients is classified as... a) public held logistic provider b) privately held logistic provider c) Third party logistics provider d) single part logistics provider

3 1.5 When compared to truck transport, rail transport is: a) Less flexible but cheaper b) Less flexible and more expensive c) More flexible but more expensive d) More flexible and cheaper 1.6 Which of the following descriptions accurately reflects the typical services of a freight forwarder? a) Negotiate the purchase contract, provide transport, and make payment for goods b) Arrange shipment, manage customs clearance, and make payment for goods c) Arrange transportation of goods, manage documentation, and arrange Customs clearance d) Make import duty payments, arrange agent s commission, and deliver products 1.7 Many organisations hold safety stocks as part of their inventory. Which of the following is a reason for holding safety stocks? a) To improve stock holding levels b) To improve stock accuracy levels c) To cater for demand forecast errors d) To cater for a large storage capacity 1.8 Which of the following can result by maintaining a large inventory? a) quantity discounts obtained on larger orders b) low investment costs c) high transportation charge d) difficulty with control and handling 1.9 Inventory carried for the purpose of providing flexibility to each decision-making unit to manage its operations independently is known as... a) Pipeline inventory b) Seasonal inventory c) Cycle inventory d) Decoupling inventory

4 1.10 Which of the following is not an inventory? a) Machines b) Raw material c) Finished products d) Consumable tools 1.11 The following classes of costs are usually involved in inventory decisions except... a) Cost of ordering b) Carrying cost c) Cost of shortages d) Machining cost 1.12 The time period between placing an order its receipt in stock is known as a) Lead time b) Carrying time c) Shortage time d) Over time 1.13 The terms purchasing and procurement should not be seen as synonymous. As such, which of the following statements do you think has greatest validity? 3) Procurement is broadly equivalent to purchasing b) Procurement has a broader meaning than purchasing c) Purchasing has the same meaning as procurement d) None of the above 1.14 Which of the following explains the activities required prior to paying a supplier goods ordered? invoice for a) Check invoice against original documents, check for receipt of goods, check for problems with goods b) Check supplier financial capability, check all goods have been used or sold, ask for discount c) Check budget holder has authorised the purchase order, wait until the supplier chases for payment d) Find the goods, prepare a requisition form, send an order acknowledgement

5 1.15 Which of the following describes the use of incoterms when buying internationally? (a) lb) (C) They allow the same import duty terms to apply to all goods imported from other countries They allow a uniform approach to payment terms and methods for import and export They allow for incorporation of the exchange rate to be used as part of the terms and conditions (d) They allow an understanding and incorporation of buyer and seller responsibilities in a Contract 2 x 15 = 30 Sub-total: 30 marks QUESTlON Define Logistics Management, and discuss its significance to the Namibian economy? 2.2 What are the 2 (TWO) advantages of a private ware house and what are the 3 (THREE) disadvantages of private warehousing? 2.3 What are freight forwarders and provide an example of a freight forwarder in Namibia? How do they function? What services do they perform? 2.4 What is 3PL and give 4 (FOUR) reasons for using third-party logistics services? Give 4 (FOUR) reasons why third-party logistics arrangements are not always successful? [15 marks] 2.5 Holding inventory in the supply chain involves numerous risks. Explain why companies in the various stages of supply chain find it necessary to hold inventory despite the risks attached to it? [25 marks] Sub-total: 70 marks Grand Total: 100 marks Good Luck