CUSTOMER SERVICE

1. Who is the late management guru that argued that it is the customer who determines
what a firm is and that what the customer considers value is decisive as it determines
what a firm produces and whether or not the firm will prosper?
a. Clayton Christensen
b. Peter Drucker
c. Stephen R. Covey
d. Dale Carnegie
e. Chris Argyris
2. A firm can use __________ to differentiate itself from its rivals and thus obtain a
competitive advantage and enhance its profitability.
a. Customer Service
b. Software
c. Logistics
d. Techniques
e. Customer profitability
3. ___________ elements are those sought by firms before they place an order.
a. Pre-order/ pre-transaction
b. Order service quality/ transaction
c. Post-transaction
d. Short-shipped
e. Back-order
4. Pre-order/ pre-transaction are sometimes referred to as __________.
a. Short-shipped
b. Back-order
c. Order qualifiers
d. Availability
e. Fulfilment
5. What is the ability of firms to fulfil orders from existing inventory?
a. Short-shipped
b. Back-order
c. Order qualifiers
d. Availability
e. Fulfilment
6. Products that are out of stock will need to be delivered at a future date and thus an order
will be _________ and have a back order to fulfil.
a. Short-shipped
b. Back-order
c. Order qualifiers
d. Availability
e. Fulfilment
7. It is very important in an online shopping context as it is the only aspect of the purchase
process that customers actually experience.
a. Short-shipped
 b. Back-order
c. Order qualifiers
d. Availability
e. Fulfilment
8. Appropriate order cycle or _________ is what the supplier can offer in terms of delivery
dates.
a. Lead time
b. Order winners
c. Back order
d. Short-shipped
e. Availability
9. __________ elements are those elements that occur during the order fulfilment stage
from supplier to customer.
a. Pre-order/ pre-transaction
b. Order service quality/ transaction
c. Post-transaction
d. Relationship service
e. Relationship quality
10. __________ elements are those elements that come into play after the order has been
received and relate to ongoing relations between the supplier and the customer.
a. Pre-order/ pre-transaction
b. Order service quality/ transaction
c. Post-transaction
d. Relationship service
e. Relationship quality
11. What is the tangible good provided to a customer and which adds value for them?
a. Product
b. Price
c. Promotion
d. Precedents
e. Positioning
12. It is the monetary exchange provided for the product and is a function of the added
value.
a. Power
b. Promotion
c. Price
d. People
e. Place and distribution
13. What represents all activities required to communicate to the customer to make them
aware of the product and its attributes?
a. People
b. Processes
c. Positioning
d. Promotion
 e. Planning and control
14. It refers to the strategies and tactics that can be learned by the firm through its market or
environmental scanning.
a. Product
b. Price
c. Promotion
d. Precedents
e. Positioning
15. It is the firm’s place in the market in terms of both market share and size and where the
customer perceives the firm’s position relative to its competition.
a. People
b. Processes
c. Positioning
d. Promotion
e. Planning and control
16. What relates to the market power of the firm providing the product: is the firm market
leader or a market follower and how much influence does it have with various
stakeholders such as suppliers and customers?
a. Power
b. Promotion
c. Price
d. People
e. Place of sale and distribution
17. __________ are the firm’s various stakeholders, including suppliers, customers,
employees and shareholder.
a. Product
b. Price
c. Promotion
d. Precedents
e. People
18. What refers to the firm’s ability to engage with its stakeholders in order to carry out its
business objectives and strategies?
a. People
b. Processes
c. Positioning
d. Promotion
e. Planning and control
19. _________ are those activities required to successfully bring a product to market,
including the other marketing and logistics mix variables.
a. People
b. Power
c. Processes
d. Planning and control
e. Precedents
20. What relates to the physical distribution of products and is the direct link with logistics
activities?
a. Positioning
b. People
c. Power
d. Processes
e. Place of sale or distribution
21. What is the technique to develop a proactive strategy from the Supply Chain Council
(SCC), an independent, not-for-profit corporation interested in applying and advancing
the state of the art in supply chain management systems and practices?
a. Benchmarking
b. Supply chain operations reference model
c. Balanced scorecard
d. Service/quality ‘gaps’ model
e. Critical incident techniques
22. The __________ is another strategic planning and management system that is used by
firms, governments and not-for-profit organizations to align business activities to the
strategy of the organization, improve internal and external communications, and monitor
organization performance against strategic goals.
a. Benchmarking
b. Supply chain operations reference model
c. Balanced scorecard
d. Service/quality ‘gaps’ model
e. Critical incident techniques
23. In this model, customers develop expectations of a service based on several criteria,
such as previous experience, word-of-mouth recommendations or advertising and
communication by the service provider.
a. Benchmarking
b. Supply chain operations reference model
c. Balanced scorecard
d. Service/quality ‘gaps’ model
e. Critical incident techniques
24. _________ was developed as a set of procedures for collecting direct observations of
human behavior in such a way as to facilitate their practical usefulness in solving
practical problems and developing broad psychological principles
a. Benchmarking
b. Supply chain operations reference model
c. Balanced scorecard
d. Service/quality ‘gaps’ model
e. Critical incident techniques
25. Firms will act _________ if they respond to a service failure.
a. Proactive
b. Reactive
c. Aggressive
 d. Impressive
e. Coactive

PURCHASING

1. ________ may be defined as the function associated with buying the goods and services
required by the firm.
a. Purchasing
b. Procurement
c. Transporting
d. Warehousing
e. Tracking
2. The term __________ is to denote an extension to the purchasing function towards a
more strategic and process-oriented level.
a. Purchasing
b. Procurement
c. Transporting
d. Warehousing
e. Tracking
3. Who constructed a matrix that classifies products on the basis of two dimensions, from
low to high: profit impact and supply risk?
a. Peter Kraljic
b. Peter Drucker
c. Stephen R. Covey
d. Dale Carnegie
e. Chris Argyris
4. These items require efficient processing, product standardization, order volume and
inventory optimization.
a. Critical items
b. Non-critical items
c. Leverage items
d. Bottleneck items
e. Strategic items
5. These items require further analysis to exploit any power available to the firm.
a. Critical items
b. Non-critical items
c. Leverage items
d. Bottleneck items
e. Strategic items
6. These items cause significant problems and risks which should be handled by volume
insurance or stocking up, vendor control, security of inventories and backup plans
a. Critical items
b. Non-critical items
c. Leverage items
d. Bottleneck items
 e. Strategic items
7. These items allow the buying company to exploit its full purchasing power, for instance
through tendering, target pricing and product substitution.
a. Critical items
b. Non-critical items
c. Leverage items
d. Bottleneck items
e. Strategic items
8. Purchasing industrial products and services is performed on a group basis or what Arjan
van Weele calls a __________ and what others call a buying center.
a. Decision-making unit
b. Customer service unit
c. Purchasing unit
d. Inventory unit
e. Warehousing unit
9. These are the people who will work with the product, either on an individual basis or in a
group context.
a. Users
b. Influencers
c. Buyers
d. Decision makers
e. Gatekeepers
10. These are not necessarily the same individuals as the users. In large organizations, it is
often the buyer who negotiates with the supplier about the terms and conditions of the
contract and who places the order.
a. Users
b. Influencers
c. Buyers
d. Decision makers
e. Gatekeepers
11. These are the professionals who actually determine the selection of the supplier.
Sometimes the decision maker is the person who controls the budget.
a. Users
b. Influencers
c. Buyers
d. Decision makers
e. Gatekeepers
12. They are able to affect the outcome of the purchasing process by means of solicited or
unsolicited advice.
a. Users
b. Influencers
c. Buyers
d. Decision makers
e. Gatekeepers
13. These are the people who control the flow of information from the supplier towards the
other members of the decision-making unit (vice versa)
a. Users
b. Influencers
c. Buyers
d. Decision makers
e. Gatekeepers
14. What is the first process in purchasing?
a. Pre-qualify suppliers
b. Define specifications
c. Recognize need
d. Negotiate contract
e. Place order
15. What is the last process in purchasing?
a. Evaluate order
b. Receive order
c. Need fulfilled
d. Place order
e. Solicit quotations
16. Some firms that have cash flow problems or look to exploit their purchasing power may
__________ by delaying payment for another 30 or 60 days.
a. Stretch the trade
b. Contract the trade
c. Shrink the trade
d. Compress the trade
e. Shorten the trade
17. _________ is a complex approach which requires that the buying firm determines which
costs it considers most important or significant in the acquisition, possession, use and
subsequent disposition of a good or service.
a. Purchasing cost
b. Total cost of ownership
c. Cost structure
d. Unit price
e. Supplier evaluation
18. A __________ model relies on gathering or allocating actual cost data for each of the
relevant TCO elements.
a. Quality-based
b. Value-based
c. Quantity-based
d. Cost-based
e. Research-based
19. It combines data with other performance data that are often difficult to monetise.
a. Quality-based
b. Value-based
 c. Quantity-based
d. Cost-based
e. Research-based
20. __________ initially emerged in the 1980s as a reactive approach designed to reduce
production costs in an effort to neutralize the threat of foreign competition and also to
take advantage of better-quality international products at that time, particularly from
Japan.
a. International sourcing
b. Global sourcing
c. Ethical sourcing
d. Network sourcing
e. Word-wide sourcing
21. _______ is a much more intense process and refers to the integration and coordination
of procurement requirements across worldwide business units, looking at common
items, processes, technologies, and suppliers.
a. International sourcing
b. Global sourcing
c. Ethical sourcing
d. Network sourcing
e. Word-wide sourcing
22. Global sourcing is complex and as a result intermediary called ________ have sprung
up to assist firms in their global endeavors.
a. International procurement offices
b. Global procurement offices
c. National procurement offices
d. World-wide procurement offices
e. Local procurement offices
23. _________ involves the coordinated management of finished goods inventories
outbound from a manufacturer, distributor or reseller to a reseller or other merchandiser.
a. Supplier-managed inventory
b. Customer-managed inventory
c. Vendor-managed inventory
d. Distributor-managed inventory
e. Seller-managed inventory
24. __________ involves the flow of raw materials and component parts inbound to
manufacturing process.
a. Seller-managed inventory
b. Supplier-managed inventory
c. Customer-managed inventory
d. Vendor-managed inventory
e. Distributor-managed inventory
25. It is the use of the internet in purchasing and procurement.
a. E-procurement
b. E-sourcing
 c. E-tendering
d. E-informing
e. E-reverse auctions

TRANSPORTATION

1. It may be defined as the planning and the undertaking of the movement of goods by a
carrier between two points in a cost-effective manner that achieves the times and
conditions specified by the shipper.
a. Inventory
b. Warehousing
c. Transportation
d. Procurement
e. Manufacturing
2. __________ is used solely for a limited range of products, including natural gas, crude
oil, petroleum products, water, chemicals and liquid products.
a. Inland waterway transport
b. Pipeline transport
c. Air transport
d. Road transport
e. Rail transport
3. This mode of freight transport is best suited for intercontinental shipment of bulk cargo,
bulky goods, containers and dangerous material such as oil and gas over large
distances.
a. Ocean or sea shipping
b. Road transport
c. Pipeline transport
d. Rail transport
e. Air transport
4. It is best suited for large cargo shipments covering longer distances. Such transport is
economic, environmentally friendly, and there is a good availability of specialized ships.
a. Inland waterway transport
b. Pipeline transport
c. Air transport
d. Road transport
e. Rail transport
5. ________ is best suited for high-value goods and high-speed shipments.
a. Ocean or sea shipping
b. Road transport
c. Pipeline transport
d. Rail transport
e. Air transport
6. _________ tend to be the most common type of third party used to arrange and manage
shippers and companies’ shipping needs.
a. Freight forwarders
 b. Cargo forwarders
c. Load forwarders
d. Ship forwarders
e. Weight forwarders
7. They are often considered the same as freight forwarders however, they act on behalf of
both shippers to purchase transport services and carries to sell transport capacity.
a. Transportation brokers
b. Transportation mediator
c. Transportation middleman
d. Transportation buffer
e. Transportation intermediary
8. The following are the reasons to outsource logistics activities, except __________
a. Reducing labor costs
b. Improving standards of service
c. Better support for a wider product range
d. An ability to concentrate on core competencies
e. Loss of control over logistics operations to the 3PL
9. An extension to 3PL is the concept of a __________ logistics service provider.
a. First-party
b. Second-party
c. Fourth-party
d. Fifth-party
e. Sixth-party
10. In economic theory terms, transportation’s function is to create __________ for the
goods produced or distributed by the firm.
a. Time utility
b. Form utility
c. Place utility
d. Possession utility
e. Satisfaction
11. __________ refers to a category of software that deals with the planning and execution
of the external physical movements of products across supply chains.
a. Transportation management system
b. Inventory management system
c. Warehousing management system
d. Logistics management system
e. Manufacturing management system
12. This ensures that overcharges are promptly acknowledged and resolved with the carrier.
a. Load consolidation
b. Route planning and scheduling
c. Mode and carrier selection
d. Freight audit and payment
e. Shipment tracking and trace
13. _________ analyzes the cost and services requirements for shipments and recommend
the optimal mode.
a. Load consolidation
b. Route planning and scheduling
c. Mode and carrier selection
d. Freight audit and payment
e. Shipment tracking and trace
14. What allows firms to run businesses more efficiently by managing dozens of customer
and regulatory requirements while building the best routes for private or dedicated fleets.
a. Load consolidation
b. Route planning and scheduling
c. Mode and carrier selection
d. Freight audit and payment
e. Shipment tracking and trace
15. This communicated shipping information to the carrier and enables track and trace
functionality.
a. Load consolidation
b. Route planning and scheduling
c. Mode and carrier selection
d. Freight audit and payment
e. Shipment tracking and trace
16.