Samara University

College of business and economics

department of logistics and supply chain management

Model exit exam practical questions with explanation

Set and organized by

Yesuf Oumer mohammed

July 03/2023

Samara, Ethiopia

Choose the best answer from the given alternative

1. Many management scholars hold the view that management is the art of getting things done
through other people. The issue they really address in this respect is;
A. Managers achieve organizational goals by arranging tasks for operatives
B. Managers involve themselves in performing tasks
C. Managers are responsible for arranging conducive working environment
D. Managers need not do anything to achieve the organizational goal
Answer: Managers achieve organizational goals by arranging tasks for operatives.
2. The upper limit of employees or subordinates a supervisor can effectively manage is called:
A. Span of control
B. Span of manpower
C. Span of organization
D. Span of functions
Answer: Span of control.
3. Which of the following would NOT be an accurate depiction of the differences between strategic
and tactical planning?
A. Strategic planning is developed mainly by upper-level management and tactical planning
is generally developed by lower-level management
B. Strategic plans generally contain less details than tactical plans
C. Strategic plans generally cover a longer period of time than tactical plans
D. Managers who are engaged in the development of strategic plans tend to work in more
uncertainty than those managers engaged in the development of tactical plans.
Answer: strategic plans generally contain less detail than tactical plans.

Explanation: Strategic planning is typically developed by upper-level management and focuses

on long-term goals and objectives for the entire organization. It involves making decisions that
will shape the overall direction of the organization. Strategic plans often cover a longer period of
time and require managers to work in an environment of uncertainty, as they are dealing with
future possibilities and external factors.

On the other hand, tactical planning is generally developed by lower-level management and
focuses on shorter-term actions and implementation of the strategic plan. Tactical plans are more
detailed and specific, outlining the specific steps, resources, and timelines required to achieve the
strategic goals. They are more operational in nature and help in the day-to-day decision-making
and coordination of activities.

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 Therefore, option B is not accurate because strategic plans tend to be broader and less detailed,
while tactical plans are more detailed and specific.

4. Under which decision making conditions does level of ambiguity and chances of making a bad
decision is higher?
A. Under certainty
B. Under risk
C. Under uncertainty
D. Under possibility

Answer: Explanation:

Under uncertainty, decision-making conditions are characterized by a lack of information or a

high degree of ambiguity. In such situations, the level of ambiguity is higher, and there is a
greater chance of making a bad decision. This is because decision-makers do not have access to
complete or reliable information about the outcomes or probabilities associated with different
alternatives.

In contrast, under certainty (option A), decision-making conditions are characterized by having
complete and accurate information about the outcomes and probabilities. Under risk (option B),
decision-making conditions involve having some information about the probabilities of different
outcomes, allowing decision-makers to assess and compare the risks associated with different
alternatives.

Under possibility (option D), decision-making conditions involve having partial or incomplete
information, but with known probabilities for different outcomes. This allows decision-makers to
assess the possibilities and make decisions based on the probabilities.

Therefore, option C is the correct answer as it reflects the decision-making conditions where the
level of ambiguity is higher and the chances of making a bad decision are increased.

5. Which one is NOT a recognized key skill of management?

A. Conceptual skills
B. Human skills
C. Technical skills
D. Writing skills
Answer: Writing skills.

Explanation:

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 Writing skills are not typically recognized as a key skill of management. While effective
communication is important for managers, including written communication, it is not specifically
identified as a separate key skill in the realm of management.

On the other hand, conceptual skills (option A) refer to the ability to think abstractly and
understand the organization as a whole, including its goals, strategies, and the interrelationships
between different parts. Human skills (option B) involve the ability to work effectively with
people, understand their needs, motivations, and behaviors, and build strong relationships.
Technical skills (option C) refer to the knowledge and proficiency in a specific area or field, such
as finance, marketing, or operations.

These three skills, conceptual, human, and technical, are commonly recognized as key skills of
management, as they are crucial for managers to effectively lead and coordinate their teams and
achieve organizational goals.

Therefore, option D, writing skills, is the correct answer as it is not typically recognized as a key
skill of management.
6. One of the following principles of organization states that the flow of authority from top to
bottom is in a hierarchical way. Identify it.
A. The adequacy-of-authority principle;
B. The scalar (chain of command) principle;
C. The accountability principle;
D. The unity of command principle
Answer: The unity of command principle.

Explanation:

The unity of command principle states that an employee should have only one direct supervisor
or manager to whom they report. This principle ensures a clear line of authority and avoids
confusion or conflicts that may arise from multiple supervisors giving conflicting instructions to
an employee.

Under the unity of command principle, each employee is accountable to their direct supervisor,
who has the authority to assign tasks, provide guidance, and evaluate their performance. This
principle helps to maintain a clear chain of command and ensures that employees receive
consistent direction and feedback.

Option A, the adequacy-of-authority principle, focuses on ensuring that individuals have the
necessary authority to fulfill their roles effectively. It emphasizes that authority should be
adequate and sufficient for employees to carry out their assigned responsibilities.

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 Option B, the scalar (chain of command) principle, states that the flow of authority within an
organization should follow a hierarchical structure, with a clear chain of command from top to
bottom. This principle ensures that authority is delegated and cascaded down the organizational
hierarchy in a systematic manner.

Option C, the accountability principle, emphasizes the importance of individuals being

accountable for their actions and responsibilities within the organization. It involves taking
ownership of one's actions and being answerable for the outcomes.

Therefore, the correct answer is D, the unity of command principle, as it specifically relates to
the flow of authority from top to bottom in a hierarchical manner and the concept of employees
having only one direct supervisor.
7. The organizational structure at which managers hold equal positions and status is depicted in;
A. Vertical elongation of authority line
B. Vertically and horizontally designed system of organization
C. Horizontally designed system of organization
D. Diagonal designed system of organization
Answer: The correct answer is C. Horizontally designed system of organization.

Explanation:

In a horizontally designed system of organization, managers hold equal positions and status
within the organizational structure. This means that there is no clear hierarchy or chain of
command among managers. Instead, they have similar levels of authority and decision-making
power.

In this type of organizational structure, the emphasis is on collaboration, teamwork, and shared
decision-making. Managers work together as peers, and there is a focus on fostering
communication and cooperation across departments or functional areas.

Option A, the vertical elongation of authority line, refers to a situation where the chain of
command is extended vertically, resulting in a longer line of authority. This can happen in
hierarchical structures where there are multiple levels of management.

8. Which of the following violates the principle of unity of command?

A. Matrix organization
B. Functional departmentalization
C. Geographic or territorial basis
D. Product departmentalization
Answer: Matrix organization.

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 Explanation:

The principle of unity of command states that an employee should have only one direct
supervisor or manager to whom they report. This principle ensures a clear line of authority and
avoids confusion or conflicts that may arise from multiple supervisors giving conflicting
instructions to an employee.

In a matrix organization, employees often have multiple reporting lines. They may have a
functional manager who oversees their work in a specific area or expertise, and they may also
have a project or team manager who is responsible for their work on a particular project or
initiative.

This violates the principle of unity of command because employees in a matrix organization have
to balance the instructions and demands from multiple supervisors. This can lead to confusion,
conflicting priorities, and a lack of clear accountability.

Option B, functional departmentalization, does not violate the principle of unity of command. In
functional departmentalization, employees are grouped based on their area of expertise or
function, and they report to a single manager within that function. This maintains a clear line of
authority and ensures employees have one direct supervisor.

Option C, geographic or territorial basis, also does not violate the principle of unity of command.
In this type of departmentalization, employees are grouped based on their location or the
geographic area they serve. They report to a single manager responsible for that geographic area,
maintaining a clear line of authority.

Option D, product departmentalization, does not violate the principle of unity of command either.
In product departmentalization, employees are grouped based on the specific product or product
line they work on. They report to a single manager responsible for that product or product line,
maintaining a clear line of authority.

Therefore, the correct answer is A, matrix organization, as it violates the principle of unity of
command by introducing multiple reporting lines for employees.

9. Which means that the seller pays the freight for the carriage of the goods to the named
destination?
A. CPT C. CIF
B. CIP D.CFR
The correct answer is B. CIP.

Explanation:

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 CIP (Carriage and Insurance Paid to) is an Incoterm that means the seller is responsible for
paying the freight or carriage of the goods to the named destination. This includes the cost of
transportation to the destination as well as any necessary insurance coverage during transit.

Option A, CPT (Carriage Paid To), means that the seller is responsible for the cost of
transportation to the named destination, but does not include insurance coverage.

Option C, CIF (Cost, Insurance, and Freight), and means that the seller is responsible for the cost
of transportation to the named destination as well as insurance coverage during transit. However,
CIF also includes the additional obligation of the seller to arrange and pay for marine insurance.

Option D, CFR (Cost and Freight), and means that the seller is responsible for the cost of
transportation to the named destination, but does not include insurance coverage.

Therefore, the correct answer is B, CIP, as it specifically indicates that the seller pays for the
freight or carriage of the goods to the named destination

10. Which party covers loading charges at EXW?

A. Seller C. Owner
B. Buyer D. freight forwarder

The correct answer is A. Seller.

Explanation:

EXW (Ex Works) is an Incoterm where the seller makes the goods available at their own
premises or another named place, and the buyer is responsible for all subsequent transportation,
including loading charges.

In an EXW transaction, the seller is only responsible for making the goods available for the
buyer to pick up at their own premises or another agreed-upon location. The loading charges,
which refer to the cost and responsibility of loading the goods onto the buyer's transportation, are
borne by the buyer.

Option A, Seller, is the correct answer because the seller in an EXW transaction does not cover
the loading charges. They are the responsibility of the buyer.

Option B, Buyer, is incorrect because the buyer is responsible for covering the loading charges at
EXW.

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 Option C, Owner, is incorrect because the owner's role may vary depending on the specific
circumstances, but in an EXW transaction, the seller is responsible for making the goods
available, not the owner.

Option D, Freight forwarder, is incorrect because their involvement is not specified in an EXW
transaction. The buyer is responsible for arranging transportation, including the loading of the
goods.

11. Which is a process of fulfilling customs’ formalities for import and export cargo on behalf of
consignor or consignee with in customs station?
A. Custom clearance C .Port clearance
B. Custom clearing D. Customs Transit

The correct answer is B. Custom clearing.

Explanation:

Custom clearing refers to the process of fulfilling customs' formalities for import and export
cargo on behalf of the consignor or consignee within a customs station. It involves completing
the necessary paperwork, submitting required documents, paying any applicable duties or taxes,
and obtaining customs clearance for the goods to enter or leave a country.

Option A, Custom clearance, is incorrect because it is the same as the correct answer B, Custom
clearing.

Option C, Port clearance, refers to the process of obtaining clearance from the port authorities for
a vessel to enter or leave a port. While it is related to customs procedures, it is not specifically
focused on fulfilling customs' formalities for import and export cargo.

Option D, Customs Transit, refers to the movement of goods under customs control from one
customs office to another within a country or between different countries. It does not specifically
involve fulfilling customs' formalities for import and export cargo within a customs station.

Therefore, the correct answer is B, Custom clearing, as it accurately describes the process of
fulfilling customs' formalities for import and export cargo on behalf of the consignor or
consignee within a customs station.

12. Which one is not the function of the freight forwarder?

A. Customs clearance C. Payment
B. Consolidation D. Fumigation

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 The correct answer is D. Fumigation.

Explanation:

A freight forwarder is a company or agent that helps facilitate the transportation of goods on
behalf of shippers. They provide a range of services related to logistics and transportation.
However, fumigation is not typically a function of a freight forwarder. Fumigation is a
specialized process of using chemicals or gases to eliminate pests or insects from goods or
shipping containers.

Option A, Customs clearance, is a function of a freight forwarder. They assist with fulfilling
customs' formalities, submitting required documents, and paying any applicable duties or taxes
on behalf of the shipper.

Option B, Consolidation, is also a function of a freight forwarder. They consolidate smaller

shipments into larger ones to optimize transportation efficiency and reduce costs.

Option C, Payment, is another function of a freight forwarder. They may handle payment
transactions on behalf of the shipper, such as paying for transportation services, customs duties,
or other related fees.

Option D, Fumigation, is not typically a function of a freight forwarder. It is a specialized service

that may be provided by other entities, such as pest control companies or specialized fumigation
service providers.

Therefore, the correct answer is D. Fumigation, as it is not a typical function of a freight

forwarder.

13. It is duties on certain imported and on certain locally provided services like electricity supplied
by power industries
A. Excise tariff C. Surtax tariff
B. Export duties tariff D. Dumping duties tariff

The correct answer is A. Excise tariff.

Explanation:

An excise tariff refers to a tax imposed on certain imported goods or on specific services
provided domestically. In this case, the question mentions duties on certain imported goods and
locally provided services like electricity supplied by power industries.

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 Option B, Export duties tariff, is incorrect because export duties are taxes imposed on goods
leaving a country, not on goods or services being imported or provided domestically.

Option C, Surtax tariff, is also incorrect because surtax refers to an additional tax imposed on top
of existing duties or tariffs. It is not specifically related to certain imported goods or locally
provided services.

Option D, Dumping duties tariff, is also incorrect. Dumping duties are imposed on imported
goods that are sold at a price lower than their fair market value, in order to protect domestic
industries from unfair competition. It is not specifically related to certain imported goods or
locally provided services like electricity.

Therefore, the correct answer is A. Excise tariff, as it refers to duties on certain imported goods
and on certain locally provided services like electricity supplied by power industries.

14. Which one is issued by the assistant to the captain of the ship after the cargo is loaded on the
ship.
A. Packing list C. Inspection certificate
B. Mate’s receipt D. Insurance certificate

The correct answer is B. Mate's receipt.

Explanation:

A mate's receipt is a document issued by the assistant to the captain of a ship after the cargo has
been loaded on the ship. It serves as proof that the cargo has been received on board and is in the
custody of the ship. The mate's receipt contains information about the quantity, condition, and
nature of the goods loaded.

Option A, Packing list, is incorrect because a packing list is a document that provides details
about the contents of each package or container being shipped. It includes information such as
the quantity, description, and weight of each item in the shipment.

Option C, Inspection certificate, is also incorrect. An inspection certificate is a document issued

by an authorized party that verifies the quality, condition, or compliance of goods or services. It
is typically issued after an inspection has been conducted.

Option D, Insurance certificate, is also incorrect. An insurance certificate is a document that

provides evidence of insurance coverage for the goods being shipped. It is issued by the
insurance provider and serves as proof of insurance.

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 Therefore, the correct answer is B. Mate's receipt, as it is the document issued by the assistant to
the captain of the ship after the cargo has been loaded on board.

15. Which one is determined on the basis of the cost of production of the goods valued, plus an
amount for profit?
A. Transaction value of similar goods C. Fall-back method
B. Computed value method D. Deductive value goods

The correct answer is B. Computed value method.

Explanation:

The computed value method is determined on the basis of the cost of production of the goods,
valued at the time of exportation, plus an amount for profit. It is one of the methods used to
determine the customs value of imported goods for the purpose of assessing duties and taxes.

Option A, Transaction value of similar goods, is incorrect. The transaction value of similar goods
refers to the customs value determined based on the price at which identical or similar goods are
sold in a comparable transaction.

Option C, Fall-back method, is also incorrect. The fallback method is a secondary method used to
determine the customs value when the primary method (such as the transaction value method)
cannot be applied or is not acceptable.

Option D, Deductive value method, is also incorrect. The deductive value method is a method
used to determine the customs value based on the selling price of the goods in the country of
importation, minus certain costs and expenses.

Therefore, the correct answer is B. Computed value method, as it is determined based on the cost
of production of the goods valued, plus an amount for profit

16. Which one is not standard form of documentation under L/C payment?
A. Commercial invoice C. Letter of indemnity
B. Bill of loading D. Letter of certification
The correct answer is D. Letter of certification.

Explanation:

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 Under L/C (Letter of Credit) payment, there are several standard forms of documentation that are
commonly required. These documents help facilitate the smooth transfer of goods and payments
between the buyer and seller. Let's examine the options:

Option A, Commercial invoice, is a standard form of documentation under L/C payment. It is a

document issued by the seller that provides details about the goods sold, including the quantity,
description, price, and terms of sale.

Option B, Bill of lading, is also a standard form of documentation under L/C payment. It is a
document issued by the carrier or their agent that serves as a receipt for the goods being shipped.
It provides evidence of the contract of carriage and acts as a title document for the goods.

Option C, Letter of indemnity, is another standard form of documentation under L/C payment. It
is a document issued by the seller or their bank to indemnify the buyer or the buyer's bank
against any potential loss or damage that may arise due to the non-availability of certain original
shipping documents.

Option D, Letter of certification, is not a standard form of documentation under L/C payment.
While a letter of certification may be used in certain situations to provide assurance or
certification regarding the quality, origin, or compliance of the goods, it is not a standard
requirement in L/C transactions.

Therefore, the correct answer is D. Letter of certification, as it is not a standard form of

documentation under L/C payment.
17. A company's competitive strategy
A. Defines the set of customer needs that it seeks to satisfy through its products and services.
B. Specifies the portfolio of new products that it will try to develop.
C. Specifies how the market will be segmented and how the product will be positioned,
priced, and promoted.
D. Determines the nature of procurement and transportation of materials as well as
manufacture and distribution of the product.

The correct answer is C. Specifies how the market will be segmented and how the product will be
positioned, priced, and promoted.

Explanation:

A company's competitive strategy refers to the approach it takes to gain a competitive advantage
in the market and achieve its business objectives. Let's examine the options:

Option A, Defines the set of customer needs that it seeks to satisfy through its products and
services, is a key component of a company's competitive strategy. By identifying and

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 understanding the customer needs, a company can tailor its products and services to meet those
needs better than its competitors.

Option B, Specifies the portfolio of new products that it will try to develop, is related to a
company's product development strategy. While product development is an important aspect of a
competitive strategy, it is not the sole defining factor.

Option C, Specifies how the market will be segmented and how the product will be positioned,
priced, and promoted, is a central element of a company's competitive strategy. This involves
analyzing the market, identifying target customer segments, determining the positioning of the
product, setting pricing strategies, and developing promotional activities to effectively reach and
attract customers.

Option D, Determines the nature of procurement and transportation of materials as well as

manufacture and distribution of the product, is more related to a company's operational strategy
rather than its competitive strategy. While operations play a crucial role in executing the
competitive strategy, they do not define the strategy itself.

Therefore, the correct answer is C. Specifies how the market will be segmented and how the
product will be positioned, priced, and promoted, as it encompasses key elements of a company's
competitive strategy.
18. A company's supply chain strategy
A. Defines the set of customer needs that it seeks to satisfy through its products and services.
B. Specifies the portfolio of new products that it will try to develop.
C. Specifies how the market will be segmented and how the product will be positioned,
priced, and promoted.
D. Determines the nature of procurement and transportation of materials as well as
manufacture and distribution of the product.
The correct answer is D. Determines the nature of procurement and transportation of materials as
well as manufacture and distribution of the product.

Explanation:

A company's supply chain strategy refers to the plan and decisions made regarding the
procurement, transportation, manufacturing, and distribution of materials and products. Let's
examine the options:

Option A, Defines the set of customer needs that it seeks to satisfy through its products and
services, is more related to a company's competitive strategy. While understanding customer
needs is important for supply chain management, it does not define the supply chain strategy
itself.

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 Option B, Specifies the portfolio of new products that it will try to develop, is related to a
company's product development strategy. While new product development can impact the supply
chain, it is not the primary focus of the supply chain strategy.

Option C, Specifies how the market will be segmented and how the product will be positioned,
priced, and promoted, is more aligned with a company's marketing strategy. While marketing
decisions can influence the supply chain, they do not directly determine the supply chain
strategy.

Option D, Determines the nature of procurement and transportation of materials as well as

manufacture and distribution of the product, is the correct answer. Supply chain strategy involves
decisions about sourcing materials, selecting suppliers, managing transportation and logistics,
determining manufacturing processes, and establishing distribution networks. It is about
optimizing the flow of materials and products from suppliers to customers.

Therefore, the correct answer is D. Determines the nature of procurement and transportation of
materials as well as manufacture and distribution of the product, as it represents the key aspects
of a company's supply chain strategy.

19. Which of the following determines the nature of procurement of raw materials, transportation
of materials to and from the company, manufacture of the product or operation to provide the
service, and distribution of the product to the customer along with follow-up service?
A) Competitive strategy
B) Product development strategy
C) Marketing and sales strategy
D) Supply chain strategy
The correct answer is D) Supply chain strategy.

Explanation:

Supply chain strategy encompasses the decisions and actions related to the procurement of raw
materials, transportation of materials, manufacturing or service operations, and distribution of the
product to the customer, including follow-up service. Let's examine the options:

A) Competitive strategy: Competitive strategy focuses on how a company competes in the

market, including aspects such as differentiation, cost leadership, or niche targeting. While
competitive strategy may impact certain aspects of the supply chain, it does not directly
determine the nature of procurement, transportation, manufacturing, and distribution.

B) Product development strategy: Product development strategy pertains to the creation and
enhancement of new products or services. While product development decisions may influence

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 the supply chain, they do not specifically determine the nature of procurement, transportation,
manufacturing, and distribution.

C) Marketing and sales strategy: Marketing and sales strategy involves decisions regarding
market segmentation, positioning, pricing, and promotion of products or services. While
marketing and sales decisions may impact the supply chain, they do not directly determine the
nature of procurement, transportation, manufacturing, and distribution.

D) Supply chain strategy: Supply chain strategy is specifically concerned with determining the
nature of procurement of raw materials, transportation of materials, manufacturing or service
operations, and distribution of the product to the customer, including follow-up service. It
involves decisions such as sourcing, logistics, manufacturing processes, and distribution
networks.

Therefore, the correct answer is D) Supply chain strategy, as it directly determines the nature of
procurement of raw materials, transportation of materials, manufacturing or service operations,
and distribution of the product to the customer, along with follow-up service.

20. A supply chain strategy involves decisions regarding all of the following except
A. inventory
B. transportation
C. New product development.
D. Operating facilities.

The correct answer is C) New product development.

Explanation:

A supply chain strategy encompasses decisions related to various aspects of the supply chain to
ensure efficient and effective operations. Let's examine the options:

A) Inventory: Inventory management is an essential part of supply chain strategy. It involves

decisions regarding the level of inventory to be maintained, inventory holding costs, reorder
points, and replenishment strategies.

B) Transportation: Transportation is another crucial element of supply chain strategy. It involves

decisions about selecting the mode of transportation, determining optimal routes, managing
logistics providers, and optimizing transportation costs.

C) New product development: New product development is not typically considered a part of
supply chain strategy. It focuses on the creation and enhancement of new products or services,

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 including aspects such as market research, product design, and product launch. While supply
chain considerations may be taken into account during new product development, it is not
directly included in the scope of supply chain strategy.

D) Operating facilities: Operating facilities, such as manufacturing plants, warehouses, and

distribution centers, are an integral part of supply chain strategy. Decisions regarding the
location, capacity, layout, and technology of these facilities are made as part of supply chain
strategy to ensure efficient operations.

Therefore, the correct answer is C) New product development, as it is not typically included in
the decisions related to supply chain strategy.

21. The preferable supply chain strategy for a firm that sells multiple products and serves customer
segments with very different needs is to
A. Set up independent supply chains for each different product or customer segment.
B. Set up a supply chain that meets the needs of the highest volume product or customer
segment.
C. Tailor the supply chain to best meet the needs of each product's demand.
D. Set up a supply chain that meets the needs of the customer segment with the highest
implied uncertainty.
The correct answer is C) Tailor the supply chain to best meet the needs of each product's
demand.

Explanation:

When a firm sells multiple products and serves customer segments with different needs, it is
important to consider the unique characteristics and demands of each product and customer
segment. Let's examine the options:

A) Set up independent supply chains for each different product or customer segment: This
approach may lead to duplication of resources and inefficiencies in the supply chain. It can result
in higher costs and complexity in managing multiple independent supply chains.

B) Set up a supply chain that meets the needs of the highest volume product or customer
segment: While this approach may be beneficial for the highest volume product or customer
segment, it may not adequately meet the needs of other products or customer segments.
Neglecting the unique demands of different products and customer segments can lead to
dissatisfaction and missed opportunities.

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 C) Tailor the supply chain to best meet the needs of each product's demand: This approach
recognizes the importance of customization and flexibility in the supply chain. By understanding
and addressing the specific requirements of each product and customer segment, the firm can
optimize its supply chain to deliver the right product, at the right time, and in the right quantity.
This strategy allows for better customer satisfaction, efficient inventory management, and
improved overall performance.

D) Set up a supply chain that meets the needs of the customer segment with the highest implied
uncertainty: While managing uncertainty is important in supply chain strategy, solely focusing on
the customer segment with the highest uncertainty may not address the needs of other segments.
It is crucial to consider the demands and characteristics of all customer segments to create an
effective and efficient supply chain.

Therefore, the preferable supply chain strategy for a firm that sells multiple products and serves
customer segments with different needs is to tailor the supply chain to best meet the needs of
each product's demand (option C). This approach allows for customization and flexibility,
leading to improved customer satisfaction and overall supply chain performance.

22. A company's partners in the supply chain determine

A. the company's success
B. The scope of strategic fit.
C. The relevance of sustainability initiatives.
D. The need for customers.
The correct answer is B) The scope of strategic fit.

Explanation:

Partners in the supply chain play a crucial role in determining the scope of strategic fit for a
company. Let's examine the options:

A) The company's success: While partners in the supply chain can contribute to a company's
success, they alone do not solely determine the success of a company. A company's success is
influenced by various factors, including its own strategies, operations, and market conditions.

B) The scope of strategic fit: Partners in the supply chain can significantly impact the scope of
strategic fit for a company. Strategic fit refers to the alignment between a company's capabilities,
resources, and strategies with those of its partners in the supply chain. The extent to which a
company's partners align with its strategic goals, values, and operational requirements determines
the scope of strategic fit. Collaborating with partners who share similar objectives and can
complement each other's strengths can enhance the overall effectiveness and efficiency of the
supply chain.

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 C) The relevance of sustainability initiatives: While partners in the supply chain can contribute to
a company's sustainability initiatives, they do not solely determine the relevance of such
initiatives. The relevance of sustainability initiatives is influenced by various factors, including a
company's own commitment to sustainability, market demands, regulatory requirements, and
societal expectations.

D) The need for customers: Partners in the supply chain do not determine the need for customers.
The need for customers is inherent in any business, and it is the company's responsibility to
identify, attract, and retain customers through effective marketing, product offerings, and
customer service.

Therefore, the most accurate statement is that partners in the supply chain determine the scope of
strategic fit (option B). Collaborating with the right partners who align with a company's strategic
goals and capabilities can enhance the overall performance and competitiveness of the supply
chain.

23. Concerns related to the environment and sustainability

A. Are becoming less important to the consuming public.
B. Are sometimes dictated by regulations and sometimes by perception.
C. Result in increased cost for the supply chain.
D. Are relevant to only the retail member of each supply chain.
The correct answer is B) Are sometimes dictated by regulations and sometimes by perception.

Explanation:

Concerns related to the environment and sustainability have gained significant importance in
recent years. Let's examine the options:

A) Are becoming less important to the consuming public: This statement is incorrect. On the
contrary, environmental and sustainability concerns have been growing in importance to the
consuming public. More and more consumers are seeking products and services that align with
their values and have a positive impact on the environment.

B) Are sometimes dictated by regulations and sometimes by perception: This statement is

correct. Environmental and sustainability concerns can be influenced by both regulations and
perception. Some concerns are driven by government regulations and policies that aim to protect
the environment, reduce carbon emissions, promote recycling, etc. Additionally, consumer
perception and preferences also play a significant role. Companies often respond to consumer
demand for sustainable and eco-friendly products, even if there are no strict regulations in place.

C) Result in increased cost for the supply chain: This statement can be true in some cases.
Implementing environmentally friendly practices and sustainable initiatives may require

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 additional investments and changes in the supply chain, which can lead to increased costs.
However, it is important to note that sustainable practices can also lead to long-term cost savings
and efficiency improvements.

D) Are relevant to only the retail member of each supply chain: This statement is incorrect.
Environmental and sustainability concerns are relevant to all members of the supply chain, not
just the retail member. Manufacturers, suppliers, distributors, and other stakeholders all have a
role to play in adopting sustainable practices and reducing their environmental impact.

Therefore, the most accurate statement is that concerns related to the environment and
sustainability are sometimes dictated by regulations and sometimes by perception (option B).
Both regulatory requirements and consumer perception influence companies' efforts to address
environmental and sustainability concerns in their supply chain operations.
24. When a researcher defines and develops a decision statement and the steps involved in
translating it into more precise research terminology, he or she is involved in what process?
A. hypotheses development
B. research planning
C. problem definition
D. research process
The correct answer is C) problem definition.

Explanation:

When a researcher defines and develops a decision statement and the steps involved in translating
it into more precise research terminology, they are engaged in the process of problem definition.
Problem definition is the initial step in the research process where the researcher identifies and
clarifies the research problem or question they want to investigate. It involves understanding the
decision that needs to be made, formulating a clear research problem statement, and breaking it
down into more precise research terminology.

A) Hypotheses development: Hypotheses development comes after problem definition. It

involves formulating specific statements or predictions about the relationship between variables
that can be tested through research.

B) Research planning: Research planning encompasses the overall planning and design of the
research study, including selecting appropriate research methods, determining the sample size,
and developing a research timeline.

D) Research process: The research process refers to the entire journey of conducting research,
which includes problem definition, research planning, data collection, data analysis, and drawing
conclusions.

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25. Which of the following is the LAST step of the problem definition process?
A. state the hypotheses and the research questions
B. determine the relevant variables
C. determine the unit of analysis
D. understand the background of the problem
The correct answer is A) state the hypotheses and the research questions.

Explanation:

The last step of the problem definition process is to state the hypotheses and the research
questions. Once the researcher has identified and defined the research problem, determined the
relevant variables, determined the unit of analysis, and understood the background of the
problem, they can proceed to formulating specific hypotheses and research questions.

B) Determine the relevant variables: Determining the relevant variables is an earlier step in the
problem definition process. It involves identifying the key variables that are related to the
research problem and need to be measured or analyzed.

C) Determine the unit of analysis: Determining the unit of analysis is also an earlier step in the
problem definition process. It involves deciding the level or scope at which the data will be
collected and analyzed, such as individuals, groups, organizations, or geographical areas.

D) Understand the background of the problem: Understanding the background of the problem is
an important step in problem definition but not the last step. It involves conducting a literature
review, gathering relevant information, and gaining a comprehensive understanding of the
context and previous research related to the problem.

Therefore, the last step in the problem definition process is to state the hypotheses and the
research questions (option A).

26. The appropriate analytical technique is determined by

A. The research design
B. Nature of the data collected
C. Nature of the hypothesis
D. Both A & B
The correct answer is D) Both A & B.

Explanation:

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 The appropriate analytical technique is determined by both the research design and the nature of
the data collected. The research design refers to the overall plan or strategy that outlines how the
research study will be conducted. Different research designs may require different analytical
techniques. Additionally, the nature of the data collected, such as the type of data (qualitative or
quantitative) and the level of measurement, also influences the choice of analytical technique.

A) The research design: The research design determines the overall approach and structure of the
research study, including the methods used to collect and analyze data.

B) Nature of the data collected: The nature of the data collected refers to the characteristics of the
data, such as its type, format, and level of measurement. Different analytical techniques are
suitable for different types of data.

C) Nature of the hypothesis: While the nature of the hypothesis may guide the choice of
analytical technique to some extent, it is not the sole determinant. The research design and the
nature of the data collected play a more significant role in determining the appropriate analytical
technique.

27. Which ONE is the most damaging problem for the researcher with secondary data?
A. It may not be accurate
B. It may be biased
C. It may not address the aims
D. It may only provide part of the answer
The correct answer is C) It may not address the aims.

Explanation:

The most damaging problem for the researcher with secondary data is that it may not address the
aims of the research. Secondary data refers to data that has been collected by someone else for a
different purpose but can be reused for another research study. However, since secondary data is
collected for a different purpose, it may not align perfectly with the aims and objectives of the
researcher's own study. This mismatch can limit the usefulness and applicability of the secondary
data for the researcher's specific research goals.

A) It may not be accurate: While accuracy can be a concern with secondary data, it is not
necessarily the most damaging problem. Researchers can assess the accuracy of the data through
various means, such as evaluating the data source's credibility and conducting data validation
checks.

B) It may be biased: Bias can also be a concern with secondary data, especially if the original
data collection process was flawed or influenced by certain biases. However, bias is not the most
damaging problem for the researcher with secondary data.

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 D) It may only provide part of the answer: While incomplete data can be a limitation of
secondary data, it is not as damaging as the data not addressing the aims of the research.
Researchers can often work with partial data by complementing it with other sources or adjusting
their research objectives accordingly.

28. What is an advantage of using open-ended questions?

A. Potential is high for interviewer bias
B. They can also be used in panel research
C. People can express themselves in their own way
D. Expensive analysis uses budgets too quickly
The correct answer is C) People can express themselves in their own way.

Explanation:

An advantage of using open-ended questions is that people can express themselves in their own
way. Open-ended questions allow respondents to provide detailed and personalized responses
without being limited to predefined options or categories. This can lead to rich and nuanced data,
providing deeper insights into the thoughts, feelings, and experiences of the respondents.

A) Potential is high for interviewer bias: Open-ended questions are less prone to interviewer bias
compared to closed-ended questions. In open-ended questions, respondents have the freedom to
express themselves without the influence of the interviewer's biases or assumptions.

B) They can also be used in panel research: Open-ended questions can be used in various
research methodologies, including panel research. Panel research involves collecting data from
the same individuals over multiple time points to track changes or trends.

D) Expensive analysis uses budgets too quickly: The cost of analysis is not specifically
associated with the use of open-ended questions. The cost of analysis depends on various factors,
such as the complexity of the data, the required analysis techniques, and the available resources.

29. When interpreting a correlation coefficient expressing the relationship between two variables, it
is very important to avoid___
A. Checking the strength of relationship
B. Jumping to the conclusions of causality
C. Checking the direction of the relationship
D. Expressing a relationship with a correlation coefficient
D. Expressing a relationship with a correlation coefficient

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 Explanation:

The statement in option D is incorrect. When interpreting a correlation coefficient, it is indeed

important to express the relationship between two variables using the correlation coefficient. The
correlation coefficient quantifies the strength and direction of the relationship between the
variables.

Option A, checking the strength of relationship, is actually a valid consideration when

interpreting a correlation coefficient. The correlation coefficient ranges from -1 to +1, with
values closer to -1 or +1 indicating a stronger relationship between the variables.

Option B, jumping to the conclusions of causality, is also important to avoid. Correlation does
not imply causation, so it is essential not to assume a causal relationship based solely on the
correlation coefficient.

Option C, checking the direction of the relationship, is another important aspect to consider. The
sign of the correlation coefficient (+ or -) indicates the direction of the relationship. A positive
correlation coefficient suggests a positive relationship where the variables move in the same
direction, while a negative correlation coefficient suggests an inverse relationship where the
variables move in opposite directions.

Therefore, the correct answer is B. Jumping to the conclusions of causality.

30. Good research reports will always:

A. focus on the Harvard style
B. Provide results that may be irrelevant.
C. Focus on addressing the research objectives.
D. Provide respondent names and addresses.
C. Focus on addressing the research objectives.

Explanation:

Option C is the correct answer. Good research reports should always focus on addressing the
research objectives. The purpose of conducting research is to answer specific research questions
or achieve specific objectives. A well-written research report should clearly and effectively
address these objectives by providing relevant and meaningful findings.

Option A, focusing on the Harvard style, is not necessarily true for all research reports. The style
of referencing or formatting may vary depending on the field or specific requirements of the
research project. While following a specific style guide like Harvard style can be important for
consistency and credibility, it is not the primary characteristic of a good research report.

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 Option B, providing results that may be irrelevant, is incorrect. Good research reports should
present results that are directly related to the research objectives and contribute to the overall
understanding of the topic. Irrelevant results would not add value to the report and may confuse
or mislead readers.

Option D, providing respondent names and addresses, is generally not recommended in research
reports, especially when dealing with human subjects. Respecting privacy and confidentiality is
important, so it is common practice to keep respondent identities anonymous to maintain ethical
standards.

In summary, a good research report should primarily focus on addressing the research objectives
and providing relevant findings.

31. __________________________ involves those items which are necessary for manufacturing but
do not become there major components of finishing output.
A. Independent Demand D. Dependent Demand
B. Indirect Inventories E. None of the above
C. Direct Inventories
B. Indirect Inventories

Explanation:

Indirect inventories refer to those items that are necessary for manufacturing but do not become
major components of the finished output. These items are typically used in the production
process but do not directly contribute to the final product. Examples of indirect inventories can
include tools, equipment, maintenance supplies, or packaging materials.

Option A, independent demand, refers to the demand for finished products that are directly
requested by customers or end-users. It does not pertain to the items necessary for manufacturing.

Option D, dependent demand, refers to the demand for components or materials that are directly
dependent on the demand for the finished product. It also does not apply to the items mentioned
in the question.

Option C, direct inventories, is not the correct answer as direct inventories would include the
major components of the finished output, rather than the items that are necessary for
manufacturing but do not become major components.

Therefore, the correct answer is B. Indirect Inventories.

32. In the Effect of Ending Inventory on the following period’s financial statements:

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 A. Gross profit indirect relationship
B. Net income indirect relationship
C. Cost of merchandise sold direct relationship
D. All of the above
E. E. None of the above

D. All of the above

Explanation:

The ending inventory has an impact on various financial statements in the following period.

A. Gross profit: There is an indirect relationship between ending inventory and gross profit. The
gross profit is calculated by subtracting the cost of goods sold from net sales. As the ending
inventory increases, the cost of goods sold decreases, resulting in a higher gross profit.
Conversely, if the ending inventory decreases, the cost of goods sold increases, leading to a lower
gross profit.

B. Net income: There is an indirect relationship between ending inventory and net income. Net
income is calculated by subtracting total expenses, including the cost of goods sold, from total
revenues. As the ending inventory increases, the cost of goods sold decreases, resulting in a
higher net income. Conversely, if the ending inventory decreases, the cost of goods sold
increases, leading to a lower net income.

C. Cost of merchandise sold: There is a direct relationship between ending inventory and the cost
of merchandise sold. The cost of merchandise sold is the expense incurred to acquire or produce
the goods that were sold during the period. As the ending inventory decreases, it means more
goods were sold, resulting in a higher cost of merchandise sold. Conversely, if the ending
inventory increases, it means fewer goods were sold, leading to a lower cost of merchandise sold.

Therefore, all of the above options are correct, and the correct answer is D. All of the above.

33. Which of the following inventories involves those items which are directly contributed in
manufacturing and become major part?
A. Raw Material D. All of the above
B. Work In Progress E. None of the above
C. Finishing Goods
B. Work In Progress

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 Explanation:

Work in progress (WIP) inventory refers to items that are in the process of being manufactured or
assembled but are not yet finished goods. These items are at various stages of completion and
include the direct materials, direct labor, and manufacturing overhead costs that have been
incurred up to that point.

Raw materials (option A) refer to the basic materials that are used in the production process but
have not yet undergone any processing or manufacturing. They are the starting point for the
manufacturing process.

Finished goods (option C) refer to the completed products that are ready for sale to customers.
These goods have completed the manufacturing process and are in their final form.

Therefore, the correct answer is B. Work In Progress, as it specifically refers to items that are
directly contributed in manufacturing and become a major part of the production process.
34. What can be found on an income statement?
A. Revenues, expenses and net profit (loss).
B. Assets, revenues and expenses.
C. Revenues, expenses, and stockholders' equity.
D. Assets, liabilities and stockholders' equity.
E. None of the above
A. Revenues, expenses, and net profit (loss).

Explanation:

An income statement, also known as a profit and loss statement, provides information about a
company's financial performance during a specific period of time. It summarizes the revenues
earned, the expenses incurred, and the resulting net profit or loss.

Revenues represent the income generated by the company from its primary operations, such as
sales of goods or services. They reflect the total amount of money earned by the company from
its business activities.

Expenses, on the other hand, represent the costs incurred by the company in order to generate
revenue. They include various items such as cost of goods sold, operating expenses, interest
expenses, and taxes.

The income statement calculates the net profit or loss by subtracting total expenses from total
revenues. If the revenues exceed the expenses, it results in a net profit. Conversely, if the
expenses exceed the revenues, it results in a net loss.

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 Therefore, the correct answer is A. Revenues, expenses, and net profit (loss) can be found on an
income statement.
35. The just-in-time (JIT) system is a(n):
A. Management system of people and procedures to fulfill all delivery deadlines.
B. Production system of small-lot manufacturing to reduce work-in-process inventory.
C. Materials management system for removing all inventories.
D. Integrated system of managing resources, information, and decision processes to
eliminate waste.
E. None of the above
B. Production system of small-lot manufacturing to reduce work-in-process inventory.

Explanation:

The just-in-time (JIT) system is a production system that focuses on minimizing work-in-process
inventory and reducing waste in manufacturing processes. It is based on the principle of
producing and delivering products or components at the exact time they are needed in the
production process, thereby minimizing inventory holding costs and maximizing efficiency.

Option A is incorrect because the JIT system is primarily focused on production and inventory
management, not delivery deadlines or overall management systems.

Option C is incorrect because the JIT system aims to minimize inventory rather than completely
removing all inventories.

Option D is incorrect because while waste elimination is a goal of the JIT system, it is not a
comprehensive system for managing resources, information, and decision processes.

Therefore, the correct answer is B. The JIT system is a production system of small-lot
manufacturing to reduce work-in-process inventory.

36. A production line uses signs at specific points on the line to indicate when components or raw
materials need to be replenished. This practice is an example of
A. Kanban C. Checkpoints
B. Poka-yoke D. Hoshin E. Juran

A. Kanban

Explanation:

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 The practice described in the question, where signs are used at specific points on a production
line to indicate when components or raw materials need to be replenished, is an example of the
Kanban system.

Kanban is a visual signaling system that helps manage inventory and production flow. It
originated from the Toyota Production System and is widely used in lean manufacturing. Kanban
cards or signs are placed at different workstations or storage areas to indicate when materials are
needed or when production should be initiated.

The purpose of Kanban is to ensure a smooth and efficient flow of materials and components in
the production process. When a Kanban card or sign is used up, it triggers the replenishment of
materials or components’, ensuring that inventory is maintained at an optimal level and that
production is not interrupted due to shortages.

Option C (Checkpoints) is incorrect because checkpoints typically refer to specific stages or

locations where quality inspections or control activities take place, rather than signaling material
replenishment.

Option B (Poka-yoke) is incorrect because Poka-yoke refers to error-proofing techniques or

mechanisms implemented to prevent mistakes or defects in the production process.

Option D (Hoshin) is incorrect because Hoshin refers to a strategic planning process used to align
organizational goals and activities.

Option E (Juran) is incorrect because Juran refers to the quality management principles and
methodologies developed by Joseph M. Juran.

Therefore, the correct answer is A. Kanban.

37. ______________ Describes the internal demand for parts based on the demand of the final
product in which the parts are used.
A. Direct Inventory D. Indirect Inventories
B. Independent demand E. None of the above
C. Dependent demand

C. Dependent demand

Explanation:

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 Dependent demand refers to the demand for parts or components that are directly linked to the
demand for the final product in which they are used. In other words, the demand for these parts is
dependent on the demand for the finished product.

Unlike independent demand, which is the demand for finished products that are sold directly to
customers, dependent demand is driven by the production needs of the final product. The
quantity and timing of dependent demand are determined by the production schedule and the bill
of materials (BOM) that specifies the components required for each unit of the final product.

For example, in the manufacturing of a car, the demand for engines, tires, seats, and other
components is dependent on the number of cars to be produced. The production planning and
scheduling process takes into account the dependent demand for these parts to ensure they are
available when needed.

Option A (Direct Inventory) and Option D (Indirect Inventories) are incorrect as they do not
specifically describe the internal demand for parts based on the demand of the final product.

Option B (Independent demand) is incorrect as it refers to the demand for finished products that
are sold directly to customers, not the demand for parts based on the demand for the final
product.

Therefore, the correct answer is C. Dependent demand.

38. The lean system concept will not work without the proper environment. Which one of the
following characteristics is most common to firms that have successfully implemented a lean
system?
A. Uniform assembly schedules D. Longer setup times
B. Specialized workforce E. None of the above
C. High rates of machine failures

B. Specialized workforce

Explanation:

Firms that have successfully implemented a lean system often have a specialized workforce as a
common characteristic. A specialized workforce is trained and skilled in the specific tasks and
processes involved in the lean system.

Lean systems aim to eliminate waste, improve efficiency, and streamline processes. To achieve
this, it is essential to have employees who are knowledgeable and experienced in the specific
techniques and methodologies associated with lean manufacturing.

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 A specialized workforce is well-trained in lean principles such as continuous improvement,
problem-solving, and waste reduction. They have the skills and expertise to identify and
eliminate inefficiencies, optimize workflows, and contribute to the overall success of the lean
system implementation.

Option A (Uniform assembly schedules) is incorrect as lean systems often aim to create flexible
and responsive assembly schedules that can adapt to changes in demand and production
requirements.

Option C (High rates of machine failures) is incorrect as lean systems focus on improving
equipment reliability and reducing machine failures through practices like preventive
maintenance and autonomous maintenance.

Option D (Longer setup times) is incorrect as lean systems strive to minimize setup times and
reduce changeover times to enable quick and efficient production transitions.

Therefore, the most common characteristic among firms that have successfully implemented a
lean system is a specialized workforce.

39. In MRP, the starting points for each part and material needed to accomplish the master
production schedule are the ________________________.
A. net requirements C. planned releases
B. gross requirements D. scheduled receipts E. planned receipts

A. Net requirements

Explanation:

In Material Requirements Planning (MRP), the starting points for each part and material needed
to accomplish the master production schedule are the net requirements. Net requirements
represent the actual quantity of a part or material that needs to be procured or produced to fulfill
the demand specified by the master production schedule.

Net requirements are calculated by subtracting the available inventory and any scheduled receipts
from the gross requirements. Gross requirements, on the other hand, represent the total demand
for a part or material without considering the inventory levels or scheduled receipts.

Option B (Gross requirements) is incorrect as gross requirements do not account for inventory
levels or scheduled receipts and only represent the total demand.

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 Option C (Planned releases) is incorrect as planned releases refer to the planned production
orders or purchase orders that are scheduled to be released to fulfill the net requirements.

Option D (Scheduled receipts) is incorrect as scheduled receipts represent the expected arrival or
availability of parts or materials through purchase orders or production orders.

Option E (Planned receipts) is incorrect as planned receipts refer to the planned production or
purchase orders that are expected to be received or available in the future.

Therefore, the starting points for each part and material needed to accomplish the master
production schedule in MRP are the net requirements.

40. Service level of 95% means that

A. the service goal is to meet 95% of annual demand
B. the service goal is to meet 95% of demand during lead time
C. there is a 95% chance that 95% of demand during lead time will be met
D. there is a 95% chance that all of demand during lead time will be met
E. None of the above

B. The service goal is to meet 95% of demand during lead time.

Explanation:

A service level of 95% indicates the desired level of performance or reliability in meeting
customer demand during the lead time. It means that the goal is to fulfill 95% of the demand that
arises during the lead time for a particular product or service.

Option A is incorrect because a service level of 95% does not specifically refer to meeting 95%
of annual demand. It focuses on the demand during the lead time, not the entire year.

Option C is incorrect because it suggests a probability of meeting 95% of the demand during lead
time, which is not accurate. The service level is not about probability but rather the desired level
of fulfillment.

Option D is incorrect because it states that there is a 95% chance that all of the demand during
lead time will be met. However, a service level of 95% does not guarantee meeting all of the
demand; it sets a target to meet 95% of the demand.

Therefore, the correct explanation is that a service level of 95% means that the service goal is to
meet 95% of the demand during lead time.

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41. Inventory holding cost may include
A. material purchase cost
B. Penalty charge if demand is not met
C. inspection of incoming supplies at warehouses
D. interest on loans
E. all except B

Inventory holding cost refers to the expenses incurred in storing and maintaining inventory. It
includes various costs associated with holding inventory, such as:

A. Material purchase cost: This includes the cost of acquiring the materials or products that are
being held in inventory. It is a direct cost associated with inventory holding.

B. Penalty charge if demand is not met: This option is incorrect. Penalty charges for not meeting
demand are not typically considered part of inventory holding cost. Such charges would fall
under other categories like penalties or fines.

C. Inspection of incoming supplies at warehouses: This cost includes the expenses associated
with inspecting and verifying the quality, quantity, and condition of incoming supplies or
inventory items at the warehouse. It ensures that the inventory meets the required standards.

D. Interest on loans: If a company has taken out loans to finance its inventory, the interest paid
on those loans is considered part of the inventory holding cost. It represents the cost of financing
the inventory investment.

E. All except B: This option is correct. Inventory holding cost may include material purchase
cost, inspection of incoming supplies at warehouses, and interest on loans. However, it does not
include penalty charges if demand is not met.

Therefore, the correct option is E, which includes all options except B.

42. There are many requirements for the successful implementation of the lean system of production.
Which one of the following is not such a requirement?
A. Substantial natural resources
B. Short setup time
C. Low machine failure and low defects
D. Uniform assembly schedule
E. None of the above

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 The successful implementation of the lean system of production requires several key
requirements to be in place. Let's analyze each option:

A. Substantial natural resources: This option is not a requirement for the successful
implementation of the lean system of production. While having access to natural resources may
be beneficial for certain industries, it is not directly linked to the principles and practices of lean
production.

B. Short setup time: This is a requirement for the successful implementation of lean production.
Short setup times help minimize downtime and improve overall efficiency in production
processes.

C. Low machine failure and low defects: This is another requirement for the successful
implementation of lean production. The focus is on achieving high-quality production with
minimal defects and machine failures to reduce waste and improve customer satisfaction.

D. Uniform assembly schedule: This is also a requirement for the successful implementation of
lean production. A uniform assembly schedule helps in maintaining a smooth flow of production,
minimizing bottlenecks, and reducing inventory.

E. None of the above: This option is incorrect as all options except for A (substantial natural
resources) are requirements for the successful implementation of the lean system of production.

Therefore, the correct answer is A. Substantial natural resources, as it is not a requirement for the
successful implementation of the lean system of production.

43. JIT systems use the standardization of components because standardization:

A. Decreases the demand for each component.
B. Increases worker productivity
C. Decreases repeatability.
D. E. None of the above
E. Allows for small lot sizes more easily.
JIT (Just-in-Time) systems rely on the standardization of components for several reasons. Let's
analyze each option:

A. Decreases the demand for each component: This option is incorrect. Standardization of
components does not directly decrease the demand for each component. Instead, it helps to
streamline production processes and improve efficiency.

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 B. Increases worker productivity: This option is incorrect. While standardization can lead to
improved worker productivity in some cases, it is not the primary reason for standardizing
components in JIT systems.

C. Decreases repeatability: This option is incorrect. Standardization actually increases

repeatability by ensuring that the same standardized components can be used consistently in
production processes.

D. None of the above: This option is incorrect. Standardization of components in JIT systems
serves specific purposes and is not accurately captured by "none of the above."

E. Allows for small lot sizes more easily: This is the correct answer. Standardization of
components in JIT systems allows for easier implementation of small lot sizes. By using
standardized components, it becomes more feasible to produce smaller quantities of each
component as needed, reducing inventory levels and improving overall efficiency.

Therefore, the correct answer is E. Allows for small lot sizes more easily, as standardization
facilitates the implementation of JIT systems by enabling production in smaller lot sizes.

44. Which of the following statements is not correct about the assumptions of EOQ?
A. Annual demand requirement is unknown
B. Only one product is involved
C. Demand is even throughout the year
D. Lead time does not vary
E. None
The EOQ (Economic Order Quantity) model is a formula used to determine the optimal order
quantity that minimizes inventory costs. Let's analyze each option to identify the statement that is
not correct about the assumptions of EOQ:

A. Annual demand requirement is unknown: This assumption is correct in the EOQ model. It
assumes that the annual demand requirement is known and constant.

B. Only one product is involved: This assumption is correct in the EOQ model. It assumes that
only one product is involved, simplifying the calculations.

C. Demand is even throughout the year: This assumption is correct in the EOQ model. It assumes
that demand is constant and evenly distributed throughout the year.

D. Lead time does not vary: This assumption is correct in the EOQ model. It assumes that the
lead time, which is the time it takes to receive an order after it is placed, remains constant and
does not vary.

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E. None: This option is incorrect. All of the statements listed (A, B, C, and D) are correct
assumptions of the EOQ model.

Therefore, the correct answer is E. None, as all of the statements listed are correct assumptions of
the EOQ model.

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45. One is not correct about EOQ;
A. The optimal order quantity reflects a trade-off between carrying costs and ordering costs
B. Orders are timed to avoid both excess stock and stock-outs
C. As order size is varied, one type of cost will decrease and the other will also decrease.
D. All are correct
E. None of the above

To identify the statement that is not correct about EOQ (Economic Order Quantity), let's analyze each
option:

A. The optimal order quantity reflects a trade-off between carrying costs and ordering costs: This
statement is correct. The EOQ model aims to find the order quantity that minimizes the total cost, which
includes both carrying costs (costs associated with holding inventory) and ordering costs (costs
associated with placing orders).

B. Orders are timed to avoid both excess stock and stock-outs: This statement is correct. The EOQ model
helps in determining the timing of orders to maintain a balance between excess stock (which incurs
carrying costs) and stock-outs (which incur costs due to lost sales or production delays).

C. As order size is varied, one type of cost will decrease and the other will also decrease: This statement
is not correct. In the EOQ model, as the order size varies, one type of cost (either carrying costs or
ordering costs) will decrease, while the other type of cost will increase. The objective is to find the order
quantity that minimizes the total cost, not both types of costs simultaneously.

D. All are correct: This option is incorrect because statement C is not correct.

E. None of the above: This option is incorrect because statement C is not correct.

Therefore, the correct answer is C. As order size is varied, one type of cost will decrease and the other
will also decrease, which is not correct according to the EOQ model.

46. Forecasting methods that are primarily subjective and rely on human judgment are known as
A. Qualitative forecasting methods.
B. Quantitative forecasting methods.
C. Time series forecasting methods.
D. Causal forecasting methods.
E. None of the above

The correct answer is A. Qualitative forecasting methods.

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 Explanation:

Qualitative forecasting methods are forecasting techniques that rely on subjective judgments and expert
opinions rather than numerical data. These methods are primarily based on human judgment and do not
involve statistical or mathematical calculations. Qualitative methods are often used when historical data
is limited, unreliable, or unavailable, or when there are significant changes in the market conditions,
consumer preferences, or other factors that cannot be easily captured through quantitative data.

On the other hand, quantitative forecasting methods (option B) involve the use of historical data and
mathematical models to make predictions. Time series forecasting methods (option C) specifically focus
on analyzing historical data patterns to forecast future values. Causal forecasting methods (option D)
consider the cause-and-effect relationships between variables to make predictions.

Therefore, the correct answer is A. Qualitative forecasting methods, as they specifically refer to
subjective methods that rely on human judgment.

47. Allocating too much capacity to a location results in

A. Permanent damage.
B. Poor utilization, and as a result, higher costs.
C. High utilization, and as a result, higher costs.
D. Poor utilization, and as a result, lower costs.
E. high utilization, and as a result, lower costs

The correct answer is C. High utilization, and as a result, higher costs.

Explanation:

Allocating too much capacity to a location refers to having more capacity than necessary for the demand
or workload in that particular location. This can lead to high utilization, meaning that the available
resources are being heavily used. While high utilization may initially seem like a positive outcome, it
often results in higher costs.

When capacity is underutilized, it means that resources are not being fully utilized, which can lead to
inefficiencies and increased costs. However, when capacity is over utilized, it can result in increased
costs as well. Overutilization can lead to strains on resources, increased wear and tear on equipment,
higher maintenance and repair costs, and potentially even the need to invest in additional capacity to meet
the excessive demand.

Therefore, the correct answer is C. High utilization, and as a result, higher costs.

48. _____ is a means short production runs and just-in-time delivery of raw materials.
A. High levels of customer service

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 B. High utilization rates
C. Low inventory levels
D. . All of the above
E. . All of the above except B

The correct answer is C. Low inventory levels.

Explanation:

Low inventory levels are a means for short production runs and just-in-time delivery of raw materials.
Just-in-time (JIT) is a production strategy that aims to minimize inventory levels by receiving materials
and producing goods only as they are needed. This approach helps to reduce waste, improve efficiency,
and enhance responsiveness to customer demands.

By keeping inventory levels low, companies can minimize storage costs, reduce the risk of obsolescence,
and optimize the utilization of available resources. Short production runs are often associated with JIT
systems, where production is performed in smaller batches to quickly respond to customer orders or
changes in demand.

Options A and B, high levels of customer service and high utilization rates, are not directly related to the
means of short production runs and just-in-time delivery of raw materials. While high levels of customer
service may be a desired outcome of implementing JIT, it is not the means by which short production
runs and just-in-time delivery are achieved. High utilization rates, as discussed in the previous question,
can actually result in higher costs when capacity is over utilized.

Therefore, the correct answer is C. Low inventory levels, as it directly corresponds to the means of short
production runs and just-in-time delivery of raw materials.

49. ___________are deliveries made from one originating location to one receiving location
A. Direct Deliveries
B. Cross docking deliveries
C. Milk Run Deliveries
D. All except A
E. None of the above

Explanation:

Direct deliveries, as stated, refer to shipments made from one originating location to one receiving
location. Therefore, option A is correct.

However, options B, C, and D also describe types of deliveries that are not restricted to one originating
location and one receiving location. Let's explain each of them:
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 B. Cross-docking deliveries: Cross-docking involves the process of receiving products at a distribution
center or warehouse and then immediately transferring them to outbound transportation vehicles for
delivery to their final destinations. This method does not necessarily involve only one originating and
receiving location, as it often involves multiple suppliers and destinations.

C. Milk Run Deliveries: Milk run deliveries, also known as shuttle deliveries or loop deliveries, involve a
scheduled route where a vehicle collects goods from multiple suppliers or locations and delivers them to
a central hub or distribution point. Again, this method does not restrict deliveries to only one originating
and receiving location.

D. All except A: This option correctly includes options B and C, which are not limited to one originating
and receiving location.

Therefore, the correct answer is D. All except A.

50. Product design; production management; and facility management are supply chain operations, for what
purpose to be operate?
A. Make
B. Planning
C. Deliver
D. D. Sourcing
E. . Return
The correct answer is B. Planning.

Explanation:

Supply chain operations such as product design, production management, and facility management are
primarily operated for the purpose of planning within the supply chain.

A. Make: While product design and production management are involved in the manufacturing or
production process, the overall purpose of these operations is to plan and coordinate the production of
goods.

C. Deliver: Delivery is part of the supply chain process, but product design, production management, and
facility management are not directly related to the physical delivery of products to customers or end-
users.

D. Sourcing: Sourcing refers to the process of finding and selecting suppliers or vendors to provide the
necessary materials, components, or services for production. While sourcing is a crucial part of the
supply chain, it is not the primary purpose of the mentioned operations.

E. Return: Return management or reverse logistics deals with the handling of returned products or
managing product returns. It is not directly related to product design, production management, or facility
management.
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 Therefore, the correct answer is B. Planning, as these operations are primarily focused on planning and
coordinating various aspects of the supply chain.

51. The inventory held in case demand exceeds expectation in order to counter uncertainty is called
A. Cycle inventory.
B. . Sourcing
C. Safety inventory.
D. Seasonal inventory.
E. None of the above

The correct answer is C. Safety inventory.

Explanation:

Safety inventory is the inventory held in case demand exceeds expectations or to counter uncertainty in
the supply chain. It acts as a buffer to protect against stockouts and disruptions in the production or
delivery process.

A. Cycle inventory refers to the inventory that varies as a result of the production cycle. It is the
inventory needed to fulfill regular demand during the production process.

B. Sourcing refers to the process of finding and selecting suppliers or vendors to provide the necessary
materials, components, or services for production. It is not directly related to holding inventory to counter
uncertainty.

D. Seasonal inventory is the inventory held to meet demand fluctuations during specific seasons or
periods of the year. It is not specifically held to counter uncertainty but rather to fulfill expected seasonal
demand.

Therefore, the correct answer is C. Safety inventory, as it specifically refers to the inventory held to
counter uncertainty and unexpected fluctuations in demand.

52. Which distribution network design is being used when the distributor/retailer delivers the product to the
customer's home instead of using a package carrier?
A. Manufacturer storage with direct shipping
B. Manufacturer/distributor storage with customer pickup
C. Distributor storage with package carrier delivery
D. Distributor storage with last mile delivery

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 E. Retail storage with customer pickup

The correct answer is D. Distributor storage with last mile delivery.

Explanation:

In the given scenario, when the distributor/retailer delivers the product directly to the customer's home
instead of using a package carrier, it represents the concept of last mile delivery. Last mile delivery refers
to the final leg of the delivery process, where the product is transported from a local distribution center or
storage facility to the customer's location.

A. Manufacturer storage with direct shipping: In this distribution network design, the manufacturer
directly ships the product to the customer without involving any intermediate storage or distribution
centers.

B. Manufacturer/distributor storage with customer pickup: This design involves storing the product either
at the manufacturer's or distributor's storage facility, and the customer picks up the product from there
instead of having it delivered.

C. Distributor storage with package carrier delivery: This design involves the distributor storing the
product in their facility and using a package carrier (such as FedEx or UPS) for the final delivery to the
customer's location.

D. Distributor storage with last mile delivery: This design involves the distributor storing the product and
taking responsibility for the last mile delivery to the customer's home or location.

E. Retail storage with customer pickup: In this design, the product is stored at a retail store, and the
customer picks up the product from the store instead of having it delivered.

Therefore, the correct answer is D. Distributor storage with last mile delivery, as it accurately describes
the scenario where the distributor/retailer delivers the product to the customer's home instead of using a
package carrier.

53. The probability of having a product in stock when a customer order arrives is
A. Response time.
B. Customer experience
C. Product variety.
D. Product availability
E. Order visibility

The correct answer is D. Product availability.

Explanation:
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 The probability of having a product in stock when a customer order arrives refers to the concept of
product availability. It represents the likelihood or chance that a requested product is currently in stock
and can be fulfilled when a customer places an order.

A. Response time: Response time refers to the time it takes for a company or system to respond to a
customer's request or inquiry. It is not directly related to the probability of having a product in stock.

B. Customer experience: Customer experience refers to the overall perception and satisfaction that a
customer has while interacting with a company, its products, and services. While product availability can
impact customer experience, it does not directly define the probability of having a product in stock.

C. Product variety: Product variety refers to the range and diversity of products offered by a company. It
does not directly determine the probability of having a specific product in stock when a customer order
arrives.

D. Product availability: Product availability specifically addresses the likelihood of having a product in
stock at the time a customer places an order. It is directly related to the probability of fulfilling a
customer's request.

E. Order visibility: Order visibility refers to the ability to track and monitor the status of an order
throughout the supply chain. While it can contribute to product availability, it does not directly represent
the probability of having a product in stock.

Therefore, the correct answer is D. Product availability, as it accurately describes the probability of
having a product in stock when a customer order arrives.

54. Which of the following are measures of customer service that are influenced by the structure of the
distribution network?
A. Response time
B. Customer experience
C. Product variety
D. Product availability
E. All of the above

The correct answer is E. All of the above.

Explanation:

All of the listed options can be measures of customer service that are influenced by the structure of the
distribution network. Let's go through each option and see how they are influenced:

A. Response time: The structure of the distribution network, including factors such as the number and
location of distribution centers, transportation modes, and routing, can affect the response time. For

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 example, a well-structured distribution network with strategically located distribution centers can lead to
faster response times.

B. Customer experience: The structure of the distribution network can impact customer experience in
various ways. For instance, if the network allows for quick and accurate order fulfillment, on-time
deliveries, and easy returns or exchanges, it can enhance the overall customer experience.

C. Product variety: The structure of the distribution network can influence the product variety available
to customers. A well-structured network can efficiently handle a wide range of products, enabling
customers to have access to a diverse selection.

D. Product availability: The structure of the distribution network plays a crucial role in ensuring product
availability. An optimized network can minimize stock outs, reduce lead times, and improve inventory
management, leading to better product availability for customers.

Therefore, all of the listed options, including response time, customer experience, product variety, and
product availability, can be influenced by the structure of the distribution network. Hence, the correct
answer is E. All of the above.

55. Which distribution network design is being used when inventory is stored locally at retail stores and
customers walk into the retail store or place an order online or on the phone and pick it up at the retail
store?
A. Manufacturer storage with direct shipping
B. Manufacturer/distributor storage with customer pickup
C. Distributor storage with package carrier delivery
D. Distributor storage with last mile delivery
E. Retail storage with customer pickup

The correct answer is E. Retail storage with customer pickup.

Explanation:

When inventory is stored locally at retail stores and customers have the option to either walk into the
retail store or place an order online or on the phone and pick it up at the retail store, it is an example of a
distribution network design known as retail storage with customer pickup.

In this design, the retail stores serve as the storage locations for inventory. Customers have the
convenience of choosing to either visit the store physically or place an order remotely and then pick up
the products from the store. This model allows for efficient utilization of retail space and provides
customers with flexibility and convenience.

Let's go through the other options to understand why they are not the correct answers:

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 A. Manufacturer storage with direct shipping: This option refers to a distribution network design where
inventory is stored at the manufacturer's facility and products are shipped directly from the manufacturer
to the customer. It does not involve retail stores or customer pickups.

B. Manufacturer/distributor storage with customer pickup: This option involves storing inventory at
either the manufacturer or distributor's facility, and customers have the option to pick up their orders
directly from these locations. It does not involve retail stores specifically.

C. Distributor storage with package carrier delivery: This option involves storing inventory at a
distributor's facility, and orders are shipped to customers using package carriers such as UPS or FedEx. It
does not involve retail stores or customer pickups.

D. Distributor storage with last mile delivery: This option involves storing inventory at a distributor's
facility, and orders are delivered to customers' homes or designated delivery locations as the last leg of
the distribution process. It does not involve retail stores or customer pickups.

Therefore, the correct answer is E. Retail storage with customer pickup, as it accurately describes the
distribution network design mentioned in the question.

56. As the number of facilities in a supply chain increases, total facility costs
A. Decrease.
B. Decrease to a point and then increase.
C. Remain the same.
D. Increase
E. . No change
The correct answer is B. Decrease to a point and then increase.

Explanation:

As the number of facilities in a supply chain increases, the total facility costs initially decrease due to
economies of scale and scope. When there are more facilities, the fixed costs can be spread out, resulting
in lower average costs per facility. Additionally, having more facilities can improve responsiveness and
reduce transportation costs by bringing products closer to customers.

However, beyond a certain point, adding more facilities can lead to diminishing returns and increased
costs. The costs associated with managing and operating multiple facilities, including staffing,
maintenance, and coordination, can outweigh the benefits of economies of scale. Overlapping facilities
and redundant operations can also lead to inefficiencies and increased costs.

Therefore, while the total facility costs decrease initially as the number of facilities in a supply chain
increases, they eventually reach a point where they start to increase again. This is why the correct answer
is B. Decrease to a point and then increase.

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57. Which of the following statements about distribution networks is true?
A. The ownership structure of the distribution network can have as big an impact as the type of
distribution network.
B. The choice of a distribution network has very long-term consequences.
C. The choice of an exclusive distribution strategy may be advantageous.
D. All of the above are true.
E. None of the above

The correct answer is D. All of the above are true.

Explanation:

A. The ownership structure of the distribution network can have as big an impact as the type of
distribution network: The ownership structure of a distribution network refers to who owns and controls
the various entities involved in the distribution process, such as manufacturers, wholesalers, retailers, or
third-party logistics providers. The ownership structure can have a significant impact on the efficiency,
cost, and control of the distribution network. For example, a vertically integrated distribution network
where a single entity owns and controls all stages of the distribution process may have different
advantages and challenges compared to a network with multiple independent entities. Therefore, the
ownership structure is an important consideration when designing a distribution network.

B. The choice of a distribution network has very long-term consequences: The choice of a distribution
network has long-term consequences because it affects the efficiency, cost, flexibility, and
responsiveness of the supply chain. Once a distribution network is established, it can be difficult and
costly to change or modify. Decisions such as the number and location of facilities, the type of
transportation, and the allocation of inventory impact the overall performance of the supply chain and can
have long-lasting effects on customer satisfaction and profitability.

C. The choice of an exclusive distribution strategy may be advantageous: Exclusive distribution refers to
a strategy where a manufacturer grants exclusive rights to distribute its products to a limited number of
retailers or distributors. This strategy can be advantageous in certain situations, such as when a product
requires specialized knowledge or when maintaining brand image and control is important. By limiting
distribution to select partners, a manufacturer can have better control over product placement, pricing,
and customer experience. However, it is important to note that exclusive distribution may not be suitable
for all products or markets, and the advantages and disadvantages should be carefully considered.

Therefore, all of the statements A, B, and C are true, making D. All of the above are true the correct
answer.

58. ________ is a cost factor performance characteristic of Retail Storage at Consumer Pickup Sites that is
higher than all other options.
A. Transportation

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 B. Facilities and Handling
C. Inventory
D. Information
E. None of the above

The correct answer is E. None of the above.

Explanation:

The given options, transportation, facilities and handling, inventory, and information, are all related to
different aspects of the retail storage and consumer pickup sites. None of these options specifically
represents a cost factor performance characteristic that is higher than all other options.

Without additional information or context, it is not possible to determine a specific cost factor
performance characteristic that would be universally higher than all other options. The relative
importance and cost factors can vary depending on the specific circumstances, industry, location, and
other factors related to the retail storage and consumer pickup sites.

Therefore, the correct answer is E. None of the above, as none of the given options is specifically
identified as being higher than all other options in terms of cost factor performance characteristic.

59. The situation in which fluctuations in orders increase as they move up the supply chain from retailers to
wholesalers to manufacturers to suppliers is known as
A. Market fluctuations.
B. The whiplash effect
C. The bullwhip effect
D. . Lack of visibility
E. None of the above

The correct answer is C. The bullwhip effect.

Explanation:

The bullwhip effect refers to the phenomenon where fluctuations in customer demand at the retail level
become amplified and exaggerated as they move up the supply chain to wholesalers, manufacturers, and
suppliers. This effect is similar to the way a small movement of a whip's handle can result in a much
larger movement at the tip of the whip.

The bullwhip effect is typically caused by a lack of coordination, information sharing, and
synchronization among the different entities in the supply chain. Factors such as order batching, lead time
variability, price fluctuations, and demand forecast inaccuracies can contribute to the bullwhip effect.
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 Market fluctuations (option A) refer to changes in demand and supply conditions in the overall market,
but they do not specifically describe the amplification of fluctuations as they move up the supply chain.

The whiplash effect (option B) is not a commonly used term in supply chain management and does not
accurately describe the phenomenon of amplified fluctuations.

Lack of visibility (option D) refers to a situation where there is a lack of transparency or access to real-
time information about inventory levels, demand, and supply across the supply chain. While it can
contribute to the bullwhip effect, it is not the same as the bullwhip effect itself.

Therefore, the correct answer is C. The bullwhip effect, as it specifically describes the situation in which
fluctuations in orders increase as they move up the supply chain.

60. Which one of the following condition is used as a justification to apply an approved government method?
A) The integrity level required
B) The variation in quantity, quality, market competition and confidentiality
C) The intention is to obtain best VFM and the maximum price that buyer is willing to pay for goods
D) All of the above
E) None of the above

The correct answer is E) none of the above.

Explanation:

None of the options provided accurately describe the condition used as a justification to apply an
approved government method.

Option A) The integrity level required does not pertain to the justification for applying an approved
government method. Integrity level refers to the level of trustworthiness, accuracy, and reliability
required in a system or process.

Option B) The variation in quantity, quality, market competition, and confidentiality may be factors
considered in decision-making, but they do not specifically justify the application of an approved
government method.

Option C) The intention to obtain best value for money (VFM) and the maximum price that the buyer is
willing to pay for goods may be considerations in procurement, but it does not serve as a justification for
applying an approved government method.

Option D) All of the above is not the correct answer because none of the options A, B, or C accurately
justify the application of an approved government method.

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Therefore, the correct answer is E) None of the above, as none of the provided options accurately
represent the condition used as a justification to apply an approved government method.

61. Among the following factors one doesn’t determine the type/kind of approved government methods:
A) The monetary value and/or the threshold level set by the Directive
B) The total quantity available,
C) The time and urgency level required
D) The interest of the Procuring Entity

The correct answer is D) The interest of the Procuring Entity.

Explanation:

The interest of the Procuring Entity does not determine the type/kind of approved government methods.
The type/kind of approved government methods is typically determined by factors such as the monetary
value and/or threshold level set by the Directive, the total quantity available, and the time and urgency
level required.

Option A) The monetary value and/or the threshold level set by the Directive is an important factor in
determining the type/kind of approved government methods. Different monetary values or threshold
levels may require different methods to be used.

Option B) The total quantity available can also influence the type/kind of approved government methods.
For example, if there is a large quantity available, it may warrant a different method than if there is a
limited quantity.

Option C) The time and urgency level required is another factor that can impact the type/kind of
approved government methods. If there is a tight deadline or urgent need, it may require a specific
method to be used.

However, the interest of the Procuring Entity itself is not a determining factor in selecting the type/kind
of approved government methods. The Procuring Entity's interest may influence other aspects of the
procurement process, but it does not directly determine the method to be used.

Therefore, the correct answer is D) The interest of the Procuring Entity.

62. When used by Procurement Entity, it enables to interact extensively on technical matters with
bidders, and can have much more suitability for the procurement of goods such as a complex
information systems and procurements involving extensive technical services.
A) International Competitive Bid
B) One stage Biding

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 C) Two-stage Bidding
D) Request For Proposal
E) Expression of interest

The correct answer is D) Request For Proposal.

Explanation:

The procurement method described where the Procurement Entity can interact extensively on technical
matters with bidders and is suitable for the procurement of complex information systems and
procurements involving extensive technical services, is the Request For Proposal (RFP) method.

Option A) International Competitive Bid (ICB) is a method used when the procurement is open to
international bidders and aims to promote competition. It does not necessarily involve extensive technical
interactions with bidders.

Option B) One-stage Bidding is a method where bidders submit their bids in a single stage without any
further interactions or negotiations. It may not allow for extensive technical discussions with bidders.

Option C) Two-stage Bidding is a method where bidders first submit their technical proposals, which are
evaluated, and then shortlisted bidders are invited to submit their financial proposals. While it allows for
some technical interactions, it may not provide as much opportunity for extensive discussions on
technical matters as the method described in the question.

Option E) Expression of Interest (EOI) is a method used to gauge the interest and capabilities of potential
bidders before initiating a formal procurement process. It does not involve extensive technical
interactions with bidders.

Therefore, the correct answer is D) Request for Proposal, as it aligns with the description provided in the
question.

63. Direct procurement method is permissible under the following condition under the Ethiopian Public
Procurement Directive 649/2010?
A) Under strict necessity for reasons of urgency brought about by causes unforeseeable by the
Contracting Authority (CA) such as earth quakes, floods.
B) Unforeseen circumstances causing additional works or services may force as to use negotiated
procedure without prior notice.
C) For new works or services consisting in the repetition of similar works contracting authorities
(CA) awarded the original contract, on the basis of open or restricted procedure.
D) When the value of the contract to be awarded is above the low value threshold contracting
E) All of the above
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The correct answer is A) under strict necessity for reasons of urgency brought about by causes
unforeseeable by the Contracting Authority (CA) such as earthquakes, floods.

Explanation:

According to the Ethiopian Public Procurement Directive 649/2010, direct procurement method is
permissible under the condition of strict necessity for reasons of urgency brought about by causes
unforeseeable by the Contracting Authority (CA) such as earthquakes, floods. This means that in
emergency situations where immediate action is required due to unforeseen circumstances, direct
procurement can be used.

Option B) Unforeseen circumstances causing additional works or services may force as to use the
negotiated procedure without prior notice. While unforeseen circumstances may require the use of
negotiated procedures, it does not specifically pertain to the direct procurement method mentioned in the
question.

Option C) For new works or services consisting in the repetition of similar works contracting authorities
(CA) awarded the original contract, on the basis of open or restricted procedure. This option refers to the
repetition of similar works and the use of open or restricted procedures, but it does not directly relate to
the direct procurement method.

Option D) When the value of the contract to be awarded is above the low-value threshold contracting.
This option does not pertain to the conditions for direct procurement as mentioned in the question.

Therefore, the correct answer is A) under strict necessity for reasons of urgency brought about by causes
unforeseeable by the Contracting Authority (CA) such as earthquakes, floods.

64. Identify the wrong statement regarding Standard Bidding Document (SBD)?
A) Prepared by PPA mostly in a standardized format except on certain parts
B) The contents should be should be tailored to the particular needs of contracting authorities
and nature of goods to be procured.
C) It is developed in a form of template.
D) It is required for the sake of consistency, avoiding mistakes and omissions.
E) None of the above

The correct answer is B) the contents should be tailored to the particular needs of contracting authorities
and nature of goods to be procured.

Explanation:

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Option B) states that the contents of the Standard Bidding Document (SBD) should be tailored to the
particular needs of contracting authorities and the nature of goods to be procured. However, this
statement is incorrect.

The purpose of the Standard Bidding Document is to provide a standardized format for bidding
processes. It is developed in a form of a template, as mentioned in option C). The Standard Bidding
Document is prepared by the Public Procurement Authority (PPA) mostly in a standardized format, as
stated in option A). The aim of using the Standard Bidding Document is to ensure consistency, avoid
mistakes, and omissions, as mentioned in option D).

Therefore, the correct answer is B) the contents should be tailored to the particular needs of contracting
authorities and nature of goods to be procured. This statement is not accurate regarding the Standard
Bidding Document.

65. One of the parts of the SBD is prepared by the Procurement Entity with aim of informing bidders
the administrative regulations and laying foundation for the preparation of a bid or proposal and
setting rules for bidding contest?
A) Standard Bidding Document
B) Instruction to Bidder
C) Special Conditions of a Contract
D) General Conditions of a Contract
E) Bid Data Sheet

The correct answer is B) Instruction to Bidder.

Explanation:

The part of the Standard Bidding Document (SBD) that is prepared by the Procurement Entity with the
aim of informing bidders about administrative regulations, laying the foundation for bid preparation, and
setting rules for the bidding contest is known as the "Instruction to Bidder."

The Instruction to Bidder provides important information to potential bidders regarding the bidding
process, eligibility criteria, bid submission requirements, evaluation criteria, contract terms, and other
relevant instructions. It serves as a guide for bidders to understand the specific requirements and
procedures they need to follow when preparing and submitting their bids.

The other options mentioned are also parts of the Standard Bidding Document, but they serve different
purposes:

A) Standard Bidding Document: This refers to the entire set of documents used for the bidding process,
including the Instruction to Bidder, Bid Data Sheet, Special Conditions of Contract, and General
Conditions of Contract.

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C) Special Conditions of a Contract: These are specific conditions that are unique to a particular
procurement contract, outlining any special requirements or conditions that may apply.

D) General Conditions of a Contract: These are standard terms and conditions that apply to most
procurement contracts, covering aspects such as payment terms, delivery requirements, dispute
resolution, and other general contractual obligations.

E) Bid Data Sheet: This contains specific information related to the bid, such as the bid submission
deadline, format, and any specific requirements for the bid documents.

Therefore, the correct answer is B) Instruction to Bidder.

66. Identify the correct statement about Section 3 of the SBD, Evaluation and Qualification Criteria
(EQC)?
A) It serves as an assurance to tenderers that the evaluation would be fair and treats all bidders
in the same manner.
B) Qualification is more concerned with assessing the financial and technical capability of a
bidder to carry out a specified contractual value.
C) Evaluation involves assessing the bidders’ proposition on the bases of PEs requirement.
D) The Procurement Entity is free to use any qualification and evaluation criteria other than
stated in the SBD during issuance.
E) All except D

The correct answer is A) It serves as an assurance to tenderers that the evaluation would be fair and treats
all bidders in the same manner.

Explanation:

Section 3 of the Standard Bidding Document (SBD) is the Evaluation and Qualification Criteria (EQC)
section. This section outlines the criteria and procedures that will be used to evaluate and qualify bidders'
proposals.

Option A) is the correct statement because the EQC section serves as an assurance to tenderers (bidders)
that the evaluation process will be fair and treat all bidders in the same manner. It ensures transparency
and equal treatment by providing a clear set of criteria that will be used to evaluate and compare the
proposals.

Option B) is not the correct statement because qualification criteria are concerned with assessing the
overall capability of a bidder to carry out the contract, which includes financial, technical, and other
relevant capabilities.

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Option C) is not the correct statement because evaluation involves assessing the bidders' proposals based
on the procurement entity's (PE) requirements, which are outlined in the bidding documents.

Option D) is not the correct statement because the Procurement Entity is generally required to use the
qualification and evaluation criteria stated in the SBD during the issuance of the bidding documents.
Deviating from the stated criteria without valid reasons would undermine the fairness and transparency of
the procurement process.

Therefore, the correct answer is A) It serves as an assurance to tenderers that the evaluation would be fair
and treats all bidders in the same manner.

67. One of the following is not the part of the Section 3 of the SBD? A) Bid Submission Sheet
(BSS):
B) Supply of Requirements
C) Price schedule for goods and related services
D) Bid Security Form
E) Manufacturer’s Authorization

The correct answer is B) Supply of Requirements.

Explanation:

Section 3 of the Standard Bidding Document (SBD) is the Evaluation and Qualification Criteria (EQC)
section. This section outlines the criteria and procedures that will be used to evaluate and qualify bidders'
proposals.

Option A) Bid Submission Sheet (BSS) is a part of Section 3. The BSS is a document that bidders use to
submit their bids, providing information such as bid prices, completion time, and any additional terms or
conditions.

Option C) Price schedule for goods and related services is also a part of Section 3. This schedule outlines
the pricing structure for the goods or services being procured, including unit prices, quantities, and any
applicable taxes or fees.

Option D) Bid Security Form is another part of Section 3. This form is used to provide a bid security or
guarantee, ensuring that the bidder is committed to their bid and will enter into a contract if selected.

Option E) Manufacturer's Authorization is not a part of Section 3. It is typically included in the technical
specifications or documentation related to the qualification criteria. The manufacturer's authorization is a
document provided by the manufacturer of a specific product, stating that the bidder is authorized to
supply and distribute that product.

Therefore, the correct answer is B) Supply of Requirements, as it is not a part of Section 3 of the SBD.

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68. Assume that you are Tender evaluation committee of a public institution which is procuring
construction of a 5 story building and you arrived at the final bid values of suppliers, where
supplier X’s bid value is 1,000birr, Supplier Y’s bid value is 950birr, Supplier Z’s bid value is
1010birr, and Supplier A’s bid value is 1050. In the bid evaluation process you are given an
information that Supplier Z and A are Small Businesses, whereas Supplier the others are large
scale business, where you need to apply margin of preference according to Ethiopian PP
Directive 649/2010. Accordingly, which supplier is going to win as least bidder?
A) Supplier Z
B) Supplier X
C) Supplier Y
D) Supplier A

According to the given information, the bid values of the suppliers are as follows:

Supplier X: 1,000 birr

Supplier Y: 950 birr
Supplier Z: 1,010 birr
Supplier A: 1,050 birr

It is mentioned that Supplier Z and Supplier A are small businesses, while the others are
large-scale businesses. The Ethiopian PP Directive 649/2010 allows for a margin of
preference to be applied to bids from small businesses.

To determine the supplier who will win as the least bidder, we need to apply the margin of
preference for small businesses. Let's assume that the margin of preference is 5%.

For Supplier Z, the bid value will be adjusted downwards by 5%: 1,010 birr - (5% of 1,010
birr) = 959.5 birr (adjusted bid value)

For Supplier A, the bid value will also be adjusted downwards by 5%: 1,050 birr - (5% of
1,050 birr) = 997.5 birr (adjusted bid value)

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 Comparing the adjusted bid values, we have: Supplier X: 1,000 birr Supplier Y: 950 birr
Supplier Z: 959.5 birr Supplier A: 997.5 birr

Therefore, the supplier who will win as the least bidder after applying the margin of
preference is:
C) Supplier Y with a bid value of 950 birr.

Supplier Y has the lowest adjusted bid value among all the suppliers, even after considering
the margin of preference for small businesses. Thus, Supplier Y will win as the least bidder.
69. What is the primary purpose of Incoterms?
a. To define the responsibilities of buyers and sellers in an international trade transaction
b. To establish uniform customs procedures
c. To regulate international trade in goods
d. To set the prices of goods in international trade

The primary purpose of Incoterms is to define the responsibilities of buyers and sellers in an
international trade transaction. Incoterms (International Commercial Terms) are a set of rules
established by the International Chamber of Commerce (ICC) that define the obligations,
risks, and costs associated with the delivery of goods from sellers to buyers. They provide a
standardized framework for interpreting the terms commonly used in international trade
contracts, such as the allocation of transportation costs, insurance, customs clearance, and the
transfer of risks between the parties involved. By clearly defining these responsibilities,
Incoterms help to avoid misunderstandings and disputes in international trade transactions.
Therefore, option A. To define the responsibilities of buyers and sellers in an international
trade transaction is the correct answer.
70. Letter of credit is used as a payment modality in an international trade due to the following
reasons except;
a. Credit risk is reduced
b. Covered by international rules & system for settling disputes.
c. Provides the seller with firm evidence of an export sale
d. Provide maximum advantage for the importer

The correct answer is:

d. Provide maximum advantage for the importer.

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Letter of credit (LC) is a payment modality used in international trade, but it does not necessarily provide
maximum advantage for the importer. Instead, it offers advantages for both the importer and the exporter
by mitigating risks and providing security in the transaction.

The reasons why a letter of credit is used as a payment modality in international trade include:

a. Credit risk is reduced: A letter of credit provides assurance to the exporter that they will receive
payment as long as they comply with the terms and conditions specified in the LC. This reduces the
credit risk for the exporter.

b. Covered by international rules & system for settling disputes: Letters of credit are governed by
internationally recognized rules, such as the Uniform Customs and Practice for Documentary Credits
(UCP 600), which provide a standardized framework for LC transactions. This helps in resolving
disputes that may arise during the trade process.

c. Provides the seller with firm evidence of an export sale: The letter of credit serves as a documented
proof of the export sale, providing security and confidence to the seller that they will be paid upon
fulfilling the terms and conditions outlined in the LC.

Therefore, the correct answer is d. Provide maximum advantage for the importer, as the advantages of
using a letter of credit extend to both the importer and the exporter in terms of risk reduction, dispute
settlement, and evidence of sale.

71. __________________ refers to the integration of and coordination of requirements across

worldwide business units, looking at common items, processes, technology, and suppliers.
A. Offshore outsourcing
B. International Procurement
C. Global Sourcing
D. Outsourcing
E. Foreign Sourcing

The correct answer is:

C. Global Sourcing

Global sourcing refers to the integration and coordination of requirements across worldwide business
units, looking at common items, processes, technology, and suppliers. It involves strategically sourcing
goods, services, or components from different countries or regions to take advantage of various benefits
such as cost savings, specialized expertise, or access to unique resources.

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Global sourcing goes beyond simply purchasing products or services from international suppliers. It
involves aligning the sourcing strategy with the overall business strategy, identifying commonalities and
synergies across different business units, and leveraging economies of scale and scope. This approach
allows organizations to optimize their supply chain, streamline processes, and enhance collaboration and
knowledge sharing across borders.

On the other hand, offshore outsourcing specifically refers to the practice of contracting work or services
to an external provider located in a different country. It is a subset of global sourcing and focuses on
outsourcing specific tasks or functions to offshore locations to benefit from cost advantages or
specialized skills.

International procurement is a broader term that encompasses the sourcing and procurement of goods or
services from international suppliers, which may or may not involve integration and coordination across
business units.

Outsourcing is a general term that refers to the practice of delegating tasks, functions, or operations to
external parties, whether they are located domestically or internationally.

Foreign sourcing is similar to global sourcing but typically refers to the sourcing of goods or services
from a specific foreign country, rather than a comprehensive approach that considers multiple countries
or regions.

Therefore, the most appropriate answer to the question is C. Global Sourcing, as it encompasses the
integration and coordination of requirements across worldwide business units.

72. Which one of the following in the riskiest payment method for the Exporter? a. Letter of Credit
b. Cash Against Document
c. Open Account
d. Advance Payment

The correct answer is:

c. Open Account

Open Account is the riskiest payment method for the exporter.

In an open account arrangement, the exporter ships the goods and sends an invoice to the importer, who
agrees to pay at a later date, typically after receiving the goods. Unlike other payment methods, there is
no guarantee or assurance of payment before the exporter ships the goods.

This payment method exposes the exporter to a higher risk of non-payment or delayed payment. The
exporter relies solely on the trust and creditworthiness of the importer to fulfill their payment obligations.
If the importer fails to pay or faces financial difficulties, the exporter may encounter difficulties in
recovering the payment or may face significant delays in receiving payment.
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On the other hand, other payment methods listed in the options offer more security for the exporter:

a. Letter of Credit (LC): This is a payment method in which the importer's bank issues a letter of credit
guaranteeing payment to the exporter upon presentation of the required documents. It provides a level of
assurance to the exporter, as the bank's commitment to payment reduces the risk of non-payment.

b. Cash Against Document (CAD): This payment method involves the exporter shipping the goods and
providing the necessary shipping documents to the importer's bank. The bank releases the documents to
the importer in exchange for payment. It offers a level of security as the exporter receives payment before
the importer takes possession of the goods.

d. Advance Payment: In this payment method, the importer pays the exporter in full before the goods are
shipped. It eliminates the risk of non-payment for the exporter, as they receive payment upfront.

Therefore, out of the options provided, c. Open Account is the riskiest payment method for the exporter,
as it lacks the guarantees and security offered by other payment methods.

73. Organizations responsible for managing the procurement of specific commodity groups on a global
scale refer to;
a. Regional Purchasing Office
b. Global Commodity Management
c. International Purchasing Offices
d. Foreign Purchasing Office

The correct answer is:

b. Global Commodity Management

Organizations responsible for managing the procurement of specific commodity groups on a global scale
are referred to as Global Commodity Management.

Global Commodity Management involves the centralized management and coordination of procurement
activities related to specific commodities across different regions or countries. It focuses on optimizing
sourcing strategies, supplier relationships, and cost efficiencies for a specific group of commodities on a
global level.

These organizations are responsible for developing and implementing procurement strategies, identifying
and qualifying global suppliers, negotiating contracts, managing supplier relationships, and ensuring the
availability of the required commodities at the right quality and price.

Regional Purchasing Office (a) typically refers to a purchasing office that operates within a specific
region or geographical area, focusing on procurement activities within that region.

International Purchasing Offices (c) generally refers to purchasing offices that handle procurement
activities across international markets, involving sourcing from different countries.
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Foreign Purchasing Office (d) is a term that can be used interchangeably with International Purchasing
Offices, referring to offices responsible for purchasing activities in foreign markets.

Therefore, out of the options provided, b. Global Commodity Management best describes the
organizations responsible for managing the procurement of specific commodity groups on a global scale.

74. A secure storage facilities where imported goods can be stored without the payment of duties and
taxes refers to;
a. Port or terminal
b. Bonded warehouse
c. Public warehouse
d. Free Trade Zone

The correct answer is:

b. Bonded warehouse

A bonded warehouse is a secure storage facility where imported goods can be stored without the payment
of duties and taxes. It is a controlled area that is authorized by the government or customs authorities.

When goods are imported into a country and stored in a bonded warehouse, the importer is not required
to pay import duties or taxes until the goods are released from the warehouse for domestic consumption.
This provides flexibility for importers to store their goods for an extended period, allowing them to defer
the payment of duties and taxes until the goods are actually needed in the market.

Bonded warehouses are typically supervised and monitored by customs authorities to ensure compliance
with import regulations. The goods stored in a bonded warehouse may be intended for re-export, undergo
further processing, or be held for distribution in the domestic market.

Other options provided:

a. Port or terminal: This refers to a location where ships dock and unload cargo, or where cargo is loaded
onto ships. While ports or terminals may have storage facilities, they do not specifically refer to secure
storage without payment of duties and taxes.

c. Public warehouse: A public warehouse is a storage facility that offers storage services to multiple
companies or individuals. Goods stored in a public warehouse are subject to the payment of duties and
taxes.

d. Free Trade Zone: A free trade zone, also known as a free zone or free trade area, is a designated
geographic area where goods can be imported, stored, processed, and re-exported without being subject
to customs duties and taxes. However, a free trade zone is a broader concept that encompasses various
economic activities beyond just storage.

Therefore, the most appropriate answer for a secure storage facility where imported goods can be stored
without the payment of duties and taxes is b. Bonded warehouse.
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 75. Performance relative to service reliability is generally reflected in an organization's
measurement of-----------?
A. Logistics Quality
B. Logistics Cycle time
C. Logistics Productivity
D. Logistics financial measures

The correct answer is:

A. Logistics Quality

Performance relative to service reliability is generally reflected in an organization's measurement of

logistics quality.

Logistics quality refers to the ability of a logistics system or process to consistently meet or exceed
customer expectations in terms of service reliability, accuracy, responsiveness, and overall
satisfaction. It is a key performance indicator that organizations use to assess the effectiveness and
efficiency of their logistics operations.

Service reliability is an essential aspect of logistics quality. It refers to the ability of a logistics system
to deliver products or services to customers on time and in the expected condition. Meeting delivery
deadlines, minimizing errors or delays, and ensuring the accuracy of order fulfillment are all
important factors in assessing service reliability.

By measuring logistics quality, organizations can evaluate their performance in meeting customer
expectations regarding service reliability. This measurement can help identify areas for improvement,
implement corrective actions, and enhance overall customer satisfaction.

Other options provided:

B. Logistics Cycle time: Logistics cycle time refers to the total time it takes for a logistics process to
complete, from the initiation of an order or request to its fulfillment. While cycle time is a relevant
measure in logistics performance evaluation, it specifically focuses on time-related efficiency rather
than service reliability.

C. Logistics Productivity: Logistics productivity measures the efficiency and effectiveness of logistics
operations in terms of resource utilization, cost-effectiveness, and output. While productivity is an
important measure, it does not directly reflect service reliability.

D. Logistics financial measures: Logistics financial measures encompass financial metrics such as
costs, revenues, profitability, and return on investment related to logistics activities. While financial
measures are essential for evaluating the financial performance of logistics operations, they do not
directly reflect service reliability.
Therefore, the most appropriate answer for performance relative to service reliability in an
organization's measurement is A. Logistics Quality.

76. Organizations with a customer focus will typically------------

A. Aim for complete customer satisfaction
B. Allow customers easy access to the organization
C. To do every operation using less of each resource
D. Be flexible and respond quickly to changing customer demands

Organizations with a customer focus typically aim for complete customer satisfaction (option A).
This means they prioritize meeting and exceeding customer expectations in order to ensure that
customers are happy and satisfied with their products or services.

Customer satisfaction is crucial for these organizations because it leads to customer loyalty, repeat
business, and positive word-of-mouth recommendations. By aiming for complete customer
satisfaction, these organizations strive to build long-term relationships with their customers and
maintain a competitive edge in the market.

Option B, allowing customer’s easy access to the organization, is also an important characteristic of
customer-focused organizations. They understand the importance of providing convenient and
accessible channels for customers to interact, communicate, and engage with them. This can include
various touch points such as physical stores, websites, mobile apps, customer support hotlines, and
social media platforms.

Option C, doing every operation using less of each resource, is not necessarily a defining
characteristic of customer-focused organizations. While organizations with a customer focus may also
aim for resource efficiency, it is not the primary focus. Their main goal is to prioritize customer
satisfaction and meet customer needs, rather than solely focusing on resource optimization.

Option D, being flexible and responding quickly to changing customer demands, is another important
characteristic of customer-focused organizations. They understand that customer preferences and
market trends can change rapidly, and they adapt their strategies, processes, and offerings
accordingly. This flexibility allows them to stay relevant and continuously meet customer needs.

In summary, while all the options mentioned can be important for organizations, the most direct and
specific characteristic of organizations with a customer focus is aiming for complete customer
satisfaction (option A). This encompasses the overall goal of prioritizing customer needs and ensuring
that customers are happy and satisfied with their experiences.

77. Which of the following are the most widely used measures of logistics performance?
A. Financial Measures of Logistics Performance
B. Cycle Time of Logistics Performance
 C. Quality Measures of Logistics Performance
D. D. Productivity Measures of Logistics Performance

The most widely used measure of logistics performance is financial measures (option A). Financial
measures provide a quantitative assessment of the financial impact and effectiveness of logistics
activities within an organization. These measures focus on evaluating the costs, profitability, and
return on investment associated with logistics operations.

Financial measures of logistics performance can include metrics such as:

1. Total logistics costs: This measure calculates the overall costs incurred in managing and
executing logistics activities, including transportation, warehousing, inventory holding, and
order processing costs.

2. Cost per unit: This measure determines the average cost incurred for each unit of product or
service delivered to customers, taking into account logistics-related expenses.

3. Return on investment (ROI): This measure evaluates the financial return generated from
investments made in logistics infrastructure, technology, and processes. It helps assess the
efficiency and profitability of logistics operations.

4. Cash-to-cash cycle time: This measure calculates the time it takes for cash to flow through the
entire logistics process, from the payment for raw materials to the receipt of payment from
customers. It reflects the efficiency of logistics in generating revenue and managing cash
flow.

While cycle time (option B), quality measures (option C), and productivity measures (option D) are
also important indicators of logistics performance, financial measures are the most widely used
because they provide a comprehensive and quantifiable assessment of the financial impact of logistics
activities. These measures help organizations make informed decisions, optimize costs, and improve
overall logistics performance.

78. All of the following statements are correct, except?

A. Organizations can only survive by supplying products that customers view as somehow
better than those from competitors.
B. Organizations can completely avoid the cost of logistics
C. As markets are demanding more variety and customization, logistics should be more
flexible.
D. Without customers an organization has no sales, no income, no profit, no business and no
organization.
The correct statement is B. Organizations can completely avoid the cost of logistics (option B). This
statement is incorrect because logistics involves various activities such as transportation,
warehousing, inventory management, and order processing, all of which incur costs. Logistics is an
essential part of supply chain management, and organizations cannot completely avoid the cost of
logistics if they want to deliver products or services to customers efficiently.

Option A is correct. Organizations need to supply products that customers view as better than those
from competitors in order to survive. This is because customers have choices and will choose
products that provide them with better value, quality, features, or benefits.

Option C is correct. As markets demand more variety and customization, logistics should be more
flexible. This is because customization often requires managing complex supply chains, coordinating
multiple suppliers, and efficiently delivering customized products to customers. Flexibility in
logistics operations allows organizations to meet customer demands for variety and customization
effectively.

Option D is correct. Without customers, an organization has no sales, no income, no profit, no

business, and no organization. Customers are the lifeblood of any organization, and their demand for
products or services is what drives sales, revenue, and ultimately the success of the organization.

Therefore, the incorrect statement is B, as organizations cannot completely avoid the cost of logistics.

79. Which of the following are the basic principles of customer-focused marketing, except?
A. The focal point of a business's strategy must be the customers it intends to serve.
B. Customer needs and requirements are more basic than product and service.
C. The job is to find the right customers for your product but not to find the right
products for your customers
D. Is a customer centered “sense and responds” philosophy

The correct statement is C. "The job is to find the right customers for your product but not to find the
right products for your customers" (option C). This statement goes against the basic principles of
customer-focused marketing.

Option A is correct. The focal point of a business's strategy must be the customers it intends to serve.
This principle emphasizes the importance of understanding and meeting customer needs and
preferences in order to create value and build long-term relationships.

Option B is correct. Customer needs and requirements are more basic than the product and service.
This principle highlights the importance of understanding and fulfilling customer needs and
preferences as the foundation of successful marketing. Products and services should be designed and
tailored to meet these customer needs effectively.

Option D is correct. A customer-centered "sense and responds" philosophy is a basic principle of

customer-focused marketing. This principle emphasizes the need for businesses to listen, observe, and
understand customer feedback, preferences, and behavior in order to adapt and respond to their
changing needs and expectations.

Therefore, the incorrect statement is C, as the job of customer-focused marketing is to find the right
products for customers, not just to find the right customers for a product. The focus should be on
understanding customer needs and developing products or services that meet those needs effectively.

80. Which of the following statement is true?

A. The larger a shipment and the longer the distance it is transported, the lower is the
cost per unit.
B. The customer's take-away in terms of market value is high quality at a low price
C. The focus of economic value is effectiveness of product/service creation
D. none

The correct statement is A. "The larger a shipment and the longer the distance it is transported, the
lower is the cost per unit" (option A). This statement is true and aligns with the principles of
economies of scale and economies of distance.

When shipments are larger, the cost per unit tends to decrease because the fixed costs associated with
transportation, such as fuel and labor, can be spread over a larger quantity of goods. Similarly, when
goods are transported over longer distances, the cost per unit tends to decrease as the fixed costs are
amortized over a greater distance.

Option B is not true. While customers may desire high quality at a low price, it is not always possible
to achieve both simultaneously. Often, higher quality products or services come at a higher price due
to the costs associated with better materials, craftsmanship, or technology.

Option C is not true. The focus of economic value is not solely on the effectiveness of product or
service creation. Economic value is determined by the balance between the benefits received and the
costs incurred by customers. It includes factors such as quality, price, convenience, and customer
satisfaction.

Therefore, the correct statement is A, as it accurately reflects the relationship between shipment size,
distance, and cost per unit in logistics and transportation.

81. Which of the following is true about undifferentiated marketing strategy?

 A. Target one segment out of the overall market by offering very precise services
B. Targets different market segments with specific marketing mixes designed
specifically to meet those segments’ needs
C. Is an advertising strategy that focuses on a unique target market
D. Employs a single marketing mix –one product, one price, one placement and a
single promotional effort – to reach the maximum number of consumers in its target
market.

The correct statement is D. "Employs a single marketing mix – one product, one price, one
placement, and a single promotional effort – to reach the maximum number of consumers in its target
market" (option D). This is a characteristic of an undifferentiated marketing strategy, also known as
mass marketing.

Undifferentiated marketing strategy involves targeting the entire market with a single marketing mix,
without segmenting the market or tailoring offerings to specific segments. The goal is to reach the
maximum number of consumers by offering a standardized product or service, using a uniform
pricing strategy, distributing through common channels, and employing a single promotional
message.

Option A is not true. Targeting one segment out of the overall market with very precise services is
more aligned with a differentiated or niche marketing strategy, where specific segments are targeted
with tailored offerings.

Option B is not true. Targeting different market segments with specific marketing mixes designed to
meet their individual needs is a characteristic of a differentiated marketing strategy, where different
segments are identified and targeted with customized offerings.

Option C is not true. An advertising strategy that focuses on a unique target market is not specific to
undifferentiated marketing but can be used in various marketing strategies.

Therefore, the correct statement is D, as it accurately describes the nature of an undifferentiated

marketing strategy.

82. Which one is not true about brick and mortal companies?
A. They are traditional form of businesses (brick only).
B. These forms of businesses are characterized by their natural physical existence in
the actual business setting and their entire business operations are not supported
by online technologies.
C. They are companies which reside in the cyber world
The correct statement is C. "They are companies which reside in the cyber world" (option C). This
statement is not true about brick and mortar companies.

Brick and mortar companies, also known as traditional or physical businesses, refer to businesses that
have a physical presence in the real world. They operate in a physical location, such as a store, office,
or factory, and conduct their business operations face-to-face with customers or through physical
interactions.

Option A is true. Brick and mortar companies are indeed traditional forms of businesses that operate
in physical locations.

Option B is true. These businesses are characterized by their physical existence in the actual business
setting and their operations are not primarily supported by online technologies. While some brick and
mortar companies may have an online presence or utilize online technologies for certain aspects of
their business, their core operations are typically conducted offline.

Option C is not true. Brick and mortar companies do not reside in the cyber world. They exist in the
physical world and interact with customers and conduct business operations in physical locations.

Therefore, the correct statement is C, as it inaccurately describes brick and mortar companies.

83. Two-way communication enhanced by e-commerce is best described by

A. Business process perspective
B. Communication perspective
C. Interface perspective
D. Interactivity

The correct answer is D. "Interactivity." Two-way communication enhanced by e-commerce is best

described as interactivity.

Interactivity refers to the ability of users to actively engage and interact with a system or platform. In
the context of e-commerce, interactivity allows for real-time communication and interaction between
businesses and customers.

Option A, the business process perspective, focuses on the efficiency and effectiveness of business
operations and workflows. While e-commerce can improve business processes, it does not
specifically describe two-way communication.

Option B, the communication perspective, emphasizes the exchange of information and messages
between parties. While e-commerce enables communication between businesses and customers, it
does not capture the interactive nature of two-way communication.
Option C, the interface perspective, refers to the design and functionality of the user interface. While
a well-designed interface can enhance interactivity, it does not fully capture the concept of two-way
communication.

Therefore, the best description for two-way communication enhanced by e-commerce is interactivity
(option D). It highlights the active engagement and real-time interaction between businesses and
customers facilitated by e-commerce platforms.

84. How a company's product or service fulfills the needs of customers is typically addressed by
______
A. Revenue model
B. Customization
C. Value proposition
D. Cost transparency

The correct answer is C. "Value proposition." How a company's product or service fulfills the needs
of customers is typically addressed by the value proposition.

A value proposition refers to the unique set of benefits and value that a company offers to its
customers. It answers the question of why customers should choose a particular product or service
over alternatives in the market. The value proposition highlights the specific ways in which the
company's offering addresses the needs, desires, and pain points of its target customers.

Option A, the revenue model, refers to the strategy a company uses to generate revenue. While a
revenue model may indirectly impact how a company's product or service fulfills customer needs, it
does not directly address this aspect.

Option B, customization, refers to the ability to tailor products or services to individual customer
preferences. While customization can be a part of a company's value proposition, it does not
encompass the entire concept of how a product or service fulfills customer needs.

Option D, cost transparency, refers to the visibility and clarity of pricing and cost information. While
cost transparency may be a factor in a company's value proposition, it does not encompass the
broader idea of how the product or service fulfills customer needs.

Therefore, the most appropriate choice for addressing how a company's product or service fulfills
customer needs is the value proposition (option C). It encompasses the unique benefits and value that
the company offers to its customers, highlighting how the offering meets their specific needs and
provides a compelling reason to choose it over alternatives.
85. For consumers, the difference between a "debit card" and a "credit card" is that

A. Both debit card and credit card necessarily expects the consumer to spend money
from a deposit account like a checking account
B. Credit card allows the consumer to spend money on credit to the issuing bank but
debit card allows the consumer to spend money from a deposit account
C. Credit card uses the money you have and a debit card uses the money you don't have.

The correct answer is B. A credit card allows the consumer to spend money on credit to the issuing
bank, while a debit card allows the consumer to spend money from a deposit account.

Explanation:

 Option A is incorrect because it states that both debit and credit cards necessarily expect the
consumer to spend money from a deposit account like a checking account. While this may be
true for debit cards, credit cards allow consumers to spend money on credit, not necessarily
from a deposit account.
 Option B is correct because it accurately describes the difference between debit and credit
cards. A credit card allows the consumer to make purchases on credit, meaning they are
borrowing money from the issuing bank and will need to repay it later. A debit card, on the
other hand, allows the consumer to spend money directly from their deposit account, without
borrowing.
 Option C is incorrect because it incorrectly states that a credit card uses the money you have
and a debit card uses the money you don't have. In reality, a credit card allows you to borrow
money from the issuing bank, while a debit card allows you to spend money that is already in
your deposit account.

86. Cash differs from checking transfer in that

A. Both are used for e-payment
B. It is anonymous and difficult to trace
C. The former is portable and requires authentication
D. It lacks privacy

The correct answer is C. Cash differs from a checking transfer in that the former is portable and
requires authentication.

Explanation:

 Option A is incorrect because although both cash and checking transfers can be used for
electronic payments, they differ in other aspects.
  Option B is incorrect because cash is often considered anonymous and difficult to trace, while
checking transfers leave a digital trail that can be tracked.
 Option C is correct because cash is physical and can be carried around, whereas a checking
transfer is a digital transaction that can be initiated from a bank account and does not require
physical presence. Additionally, checking transfers typically require authentication, such as
providing a PIN or using biometric data.
 Option D is incorrect because cash transactions can offer a certain level of privacy since they
do not leave a digital trail. However, checking transfers may have more privacy concerns as
they leave a record of the transaction within the banking system.

87. Which of the following is analogous to bank overdraft traditional payment?

A. Smart cards
B. Credit cards
C. Debit cards
D. CBE Birr

The correct answer is B. Credit cards are analogous to bank overdraft traditional payment.

Explanation:

 Option A, smart cards, are not directly analogous to bank overdraft traditional payment. Smart
cards typically store value and can be used for various purposes, but they do not specifically
relate to overdrafts.
 Option B, credit cards, is the correct answer. Credit cards allow users to make purchases and
borrow money from the issuing bank up to a certain credit limit. This is similar to a bank
overdraft, where customers are allowed to spend more than the available funds in their
account, up to a predetermined limit.
 Option C, debit cards, is not analogous to bank overdraft traditional payment. Debit cards
allow users to make purchases using the funds available in their linked bank account, without
borrowing any money.
 Option D, CBE Birr, is specific to Ethiopia and refers to a mobile payment system. It is not
directly analogous to bank overdraft traditional payment.

88. Traditional consumer behavior differs from online consumer behavior in that
A. Both are the manifestation of stimulus-response models
B. Marketing communication is the intervening variable for both
C. The former is characterized by click stream behavior
D. It is characterized by in-store behavior

The correct answer is D. Traditional consumer behavior differs from online consumer behavior in that
it is characterized by in-store behavior.
Explanation:

 Option A is incorrect because while both traditional and online consumer behavior can be
influenced by stimulus-response models, this is not the key difference between the two.
 Option B is incorrect because although marketing communication plays a role in both
traditional and online consumer behavior, it is not the key differentiating factor.
 Option C is incorrect because click stream behavior specifically refers to online consumer
behavior, not traditional consumer behavior.
 Option D is correct because traditional consumer behavior is characterized by in-store
behavior, where consumers physically visit brick-and-mortar stores, interact with products,
and make purchases in a physical retail environment. Online consumer behavior, on the other
hand, refers to the behavior of consumers when shopping and interacting with products online,
through websites or mobile applications. The key difference lies in the physical presence and
interaction with the products and store in traditional consumer behavior, whereas online
consumer behavior is conducted virtually.

89. Money laundry and possibility of double spending are crucial problems in

A. Credit cards
B. Debit cards
C. E-cash
D. Smart cards

The correct answer is C. E-cash.

Explanation:

 Option A, credit cards, is incorrect. While credit card fraud can be a problem, money
laundering and double spending are not specific to credit cards.
 Option B, debit cards, is also incorrect. Debit cards are linked directly to a user's bank
account, and while they can be subject to fraud, money laundering and double spending are
not specific to debit cards.
 Option D, smart cards, are not directly associated with money laundering or double spending.
Smart cards typically store value and can be used for various purposes, but they do not
specifically address these issues.
 Option C, e-cash, is the correct answer. E-cash refers to digital or electronic currency that is
used for online transactions. Money laundering refers to the process of making illegally
obtained money appear legal, and the anonymous nature of e-cash can make it susceptible to
money laundering activities. Double spending refers to the risk of spending the same
electronic currency multiple times, which is a concern when dealing with digital currencies
like e-cash. Therefore, money laundering and the possibility of double spending are crucial
problems in e-cash systems.

90. From the given alternatives which one false

 A. Truck Load shipping is best suited for transportation between manufacturing facilities
and warehouses or between suppliers and manufacturers.
B. Rail services are considered as an ideal model for carrying large, heavy or highdensity
products over long distances.
C. Intermodal transportation is a combination of at least two or more modes of
transportation.
D. Mass transportation is expensive than transporting goods in small quantities.

The correct answer is D. Mass transportation is more cost-effective than transporting goods in small
quantities.

Explanation:

 Option A is true. Truck load shipping is indeed best suited for transportation between
manufacturing facilities and warehouses or between suppliers and manufacturers because it
allows for efficient transportation of large quantities of goods.
 Option B is true. Rail services are considered an ideal model for carrying large, heavy, or
high-density products over long distances due to their capacity and efficiency.
 Option C is true. Intermodal transportation refers to the combination of at least two or more
modes of transportation, such as truck, rail, and ship, to transport goods efficiently and cost-
effectively.
 Option D is false. Mass transportation, which involves transporting goods in large quantities,
is generally more cost-effective compared to transporting goods in small quantities. This is
because economies of scale come into play when transporting goods in bulk, leading to lower
per-unit transportation costs. Therefore, option D is the false statement among the given
alternatives.

91. A representation of the structure and geometry of transportation within the area under
investigation and mainly comprising of nodes and links is
A. Transportation network
B. Routing
C. Transportation system
D. Transportation planning

The correct answer is A. Transportation network.

Explanation:

 Option A, transportation network, is the correct answer. A transportation network represents

the structure and geometry of transportation within a given area. It consists of nodes, which
 represent locations such as cities, intersections, or transportation hubs, and links, which
represent the connections or routes between these nodes. A transportation network is a
fundamental concept in transportation planning and analysis.
 Option B, routing, refers to the process of determining the optimal path or route for a vehicle
or goods to travel from one location to another within a transportation network. While routing
is related to transportation networks, it specifically focuses on finding the best route for a
specific journey.
 Option C, transportation system, refers to the overall infrastructure, modes of transportation,
and services that facilitate the movement of people and goods. While transportation networks
are a part of the transportation system, the term "transportation system" encompasses a
broader scope.
 Option D, transportation planning, refers to the process of developing strategies and policies
to efficiently and effectively manage transportation systems. Transportation planning involves
analyzing transportation networks, forecasting demand, and making decisions to improve
transportation infrastructure and services. While transportation networks are a component of
transportation planning, the term "transportation planning" encompasses a wider range of
activities.

92. Which one the following wrong?

A. Transport land use models deals only passenger transportation.
B. GPS can be used for tracking of urban bus movement.
C. Transportation development leads to less usage of non-renewable fossil fuel.
D. Aircraft if the fastest mode of transportation.

The correct answer is C. Transportation development leads to less usage of non-renewable fossil fuel.

Explanation:

 Option A is incorrect. Transport land use models do not only deal with passenger
transportation. They also consider the spatial distribution and accessibility of various
transportation modes, including freight transportation.
 Option B is correct. GPS (Global Positioning System) can be used for tracking the movement
of urban buses. GPS technology allows for real-time tracking and monitoring of vehicles,
including buses, in urban areas.
 Option C is incorrect. Transportation development, especially in terms of increased mobility
and transportation demand, often leads to more usage of non-renewable fossil fuels. This is
because fossil fuels, such as gasoline and diesel, are the primary sources of energy for many
modes of transportation, including cars, trucks, and airplanes.
 Option D is correct. Aircraft is generally considered the fastest mode of transportation for
long distances. Air travel allows for high speeds and direct routes, making it faster than other
modes like road or rail for covering large distances. However, it is important to note that
travel times can vary depending on factors such as airport procedures, flight schedules, and
distance to be covered.
93. One of the essential components of transportation that represent the conveyances and mostly
taking the forms of vehicles that are used to support the mobility of passengers or freight is
A. Mode of transport
B. Transportation flows
C. Transportation network
D. Transportation infrastructure

The correct answer is A. Mode of transport.

Explanation:

 Option A, mode of transport, is the correct answer. The mode of transport refers to the
specific type or form of vehicles or conveyances used to support the mobility of passengers or
freight. It includes modes such as cars, trucks, trains, ships, airplanes, bicycles, and walking.
Each mode of transport has its own characteristics, capacities, and infrastructure requirements.
 Option B, transportation flows, refers to the movement of passengers or freight within a
transportation network. It represents the volume and direction of transportation activities, such
as the number of vehicles or goods moving between different locations.
 Option C, transportation network, represents the structure and geometry of transportation
within a given area. It consists of nodes (locations) and links (connections or routes) that
facilitate the movement of passengers or freight. While transportation networks are essential
components of transportation, they do not specifically represent the vehicles or conveyances
themselves.
 Option D, transportation infrastructure, refers to the physical facilities, structures, and systems
that support transportation activities. This includes roads, bridges, railways, ports, airports,
terminals, and other facilities that enable the operation of different modes of transport. While
transportation infrastructure is crucial for transportation, it encompasses more than just the
vehicles or conveyances themselves.

94. A set of relationships between transportation nodes, networks and demand refers to:
A. Transportation network
B. Route identification
C. Transportation system
D. Transportation planning
The correct answer is C. Transportation system.

Explanation:
  Option A, transportation network, refers to the structure and geometry of transportation within
a given area, consisting of nodes (locations) and links (connections or routes) that facilitate
the movement of passengers or freight.
 Option B, route identification, is not the correct answer. Route identification typically refers to
the process of determining the specific paths or routes that vehicles or conveyances will
follow within a transportation network.
 Option C, transportation system, is the correct answer. A transportation system refers to the
overall framework and organization of transportation, including the relationships between
transportation nodes (such as airports, ports, terminals) and networks, as well as the demand
for transportation services. It encompasses the physical infrastructure, modes of transport,
policies, regulations, and planning that govern transportation.
 Option D, transportation planning, is not the correct answer. Transportation planning focuses
on the process of designing, analyzing, and optimizing transportation systems to meet current
and future needs. While transportation planning is related to the concept of a transportation
system, it specifically refers to the planning process rather than the set of relationships
between nodes, networks, and demand.

95. Social welfare, training for workers, educational opportunity and having a good relationship
with the local community are included under the umbrella of;
A. Employment Equity B. Health and safety

C. Human Rights D. Quality of life

The correct answer is D. Quality of life.

Explanation:

 Option A, Employment Equity, refers to the principle of promoting equal opportunities for
employment and eliminating discrimination in the workplace.
 Option B, Health and safety, pertains to ensuring the well-being and protection of individuals
in the workplace by implementing measures and policies that prevent accidents, injuries, and
promote physical and mental health.
 Option C, Human Rights, refers to the fundamental rights and freedoms that every individual
is entitled to, such as the right to life, liberty, and security of person, freedom of thought,
expression, and equality before the law.
 Option D, Quality of life, is the correct answer. Quality of life encompasses various aspects of
well-being, including social welfare, training for workers, educational opportunities, and
having a good relationship with the local community. It focuses on improving the overall
living conditions, satisfaction, and happiness of individuals within a given society or
community. These factors contribute to an individual's overall sense of fulfillment and
happiness.

96. According to Zsidisin and Hendrick (1998) the key factors for green purchasing includes all but
A. Cooperation with supplier’s
 B. Design specification to suppliers

C. Environmental audits for supplier’s internal management

D. Environmental audits for Customer’s internal management

The correct answer is D. Environmental audits for Customer's internal management.

Explanation: According to Zsidisin and Hendrick (1998), the key factors for green purchasing
include: A. Cooperation with supplier's: This refers to working together with suppliers to ensure
environmentally friendly practices throughout the supply chain. B. Design specification to suppliers:
This involves providing clear guidelines and requirements to suppliers regarding the design and
production of environmentally friendly products. C. Environmental audits for supplier's internal
management: This entails conducting audits to assess and monitor the environmental management
practices of suppliers.

Option D, Environmental audits for Customer's internal management, is not mentioned as one of the
key factors for green purchasing according to Zsidisin and Hendrick (1998). This option suggests
conducting environmental audits within the customer's own internal management practices, which is
not directly related to the concept of green purchasing.

97. Is a company operation with cleaner technology?

A. Resource utilization

B. Waste and Recycling

C. Greenhouse gas emission

D. Environmental pollution

E. All

To determine if a company is operating with cleaner technology, we need to consider multiple

factors. Each of the options provided is relevant to assessing the cleanliness of a company's
technology. Let's go through each option:

A. Resource utilization: This factor evaluates how efficiently a company uses resources such as
energy, water, and raw materials. Cleaner technologies often prioritize resource efficiency to
minimize waste and maximize utilization.

B. Waste and Recycling: This factor focuses on how a company manages its waste. Companies that
prioritize recycling and waste reduction are more likely to be using cleaner technologies.
C. Greenhouse gas emissions: This factor considers the amount of greenhouse gases (GHGs) emitted
by a company. Cleaner technologies aim to reduce or eliminate GHG emissions by adopting
renewable energy sources or implementing energy-efficient processes.

D. Environmental pollution: This factor looks at the overall impact of a company's operations on the
environment. Cleaner technologies strive to minimize environmental pollution, including air and
water pollution, by implementing sustainable and eco-friendly practices.

Considering all of these factors together (option E - ALL), we can better assess whether a company is
operating with cleaner technology. By evaluating resource utilization, waste and recycling practices,
greenhouse gas emissions, and environmental pollution, we can determine the overall cleanliness of a
company's technology.

98. Government has the power to act as the driver in the implementation of GrSCM in the following
ways except
A. Setting partial environmental regulations

B. Promoting green innovation

C. Educating citizens on it

D. Appling coercion and penalty

The government has a crucial role to play in driving the implementation of Green Supply Chain
Management (GrSCM). Let's analyze each option to determine which one is not a way in which the
government can act as a driver:

A. Setting partial environmental regulations: The government can set environmental regulations that
incentivize and enforce sustainable practices in supply chains. These regulations can encourage
companies to adopt GrSCM principles and practices.

B. Promoting green innovation: The government can support and promote research and development
of green technologies and practices within the supply chain. This can drive innovation and adoption
of sustainable practices.

C. Educating citizens on it: The government can educate citizens about the importance of GrSCM and
its benefits. By raising awareness and promoting understanding, the government can encourage
individuals to support companies that implement sustainable supply chain practices.

D. Applying coercion and penalty: This option refers to the use of coercive measures and penalties to
enforce GrSCM. While coercion and penalties can be tools used by the government to ensure
compliance with environmental regulations, they are not the preferred or ideal approach to driving the
implementation of GrSCM.
Therefore, the correct answer is D. Applying coercion and penalty. While the government can use
coercion and penalties as a means of enforcing compliance with environmental regulations, it is not
the primary or preferred method for driving the implementation of GrSCM. The focus is more on
setting regulations, promoting innovation, and educating citizens.

99. Which one is wrong about green Manufacturing?

A. Leads to Lower raw material costs B. leads to Production inefficiency

C. Leads to reduced environmental expenses D. Improved corporate image.

Green manufacturing refers to the practice of incorporating sustainable and environmentally friendly
processes into manufacturing operations. Let's examine each option to identify the incorrect
statement:

A. Leads to lower raw material costs: This statement is generally true. Green manufacturing often
involves reducing waste, reusing materials, and optimizing resource utilization. These practices can
lead to lower raw material costs as companies become more efficient in their material usage.

B. Leads to Production inefficiency: This statement is incorrect. Green manufacturing aims to

optimize processes and minimize waste, which can actually improve production efficiency. By
implementing sustainable practices, such as lean manufacturing and energy-efficient technologies,
companies can streamline operations and reduce inefficiencies.

C. Leads to reduced environmental expenses: This statement is generally true. Green manufacturing
focuses on minimizing the environmental impact of manufacturing processes. By implementing
sustainable practices, companies can reduce expenses related to waste management, pollution control,
and regulatory compliance.

D. Improved corporate image: This statement is generally true. Adopting green manufacturing
practices can enhance a company's corporate image. In today's environmentally conscious world,
consumers and stakeholders often favor companies that prioritize sustainability and environmental
responsibility.

Therefore, the incorrect statement is B. Leads to Production inefficiency. Green manufacturing aims
to improve production efficiency by optimizing processes and minimizing waste.
THANAK
YOU