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NEW QUESTION 24
Which of the following purchases are most likely to have low acquisition costs? Select TWO that apply.
- A. Purchase of ERP system
- B. Straight re-buy from a current supplier
- C. Purchase of standard catalogued products
- D. Procurement of construction projects
- E. Spot purchase of a technically complexed machinery
According to L4M7 study guide, acquisition costs in procurement are the costs associated with the activities involved in a purchase. A buying organisation incurs acquisition costs in low-value purchases as well as high-value purchases. The following purchases tend to have lower acquisition costs:
- Straight re-buy from a current supplier
- Purchase of standard catalogued products
Otherwise, any purchases of high value, high-risk items generally require greater attention of buying organisation and thus, they are likely to have higher acquisition costs. Spot purchase of a technically complexed machinery, Purchase of ERP system and Procurement of construction projects are examples of high-value, high-risk purchases.
LO 3, AC 3.1
NEW QUESTION 25
Can RFID tags work when they are attached to metal surfaces or embedded within metal products?
- A. Yes, all RFID tags can be used in every environmental conditions
- B. Yes, some technologies allow RFID tags to work on metal or within metal products
- C. No, metal surface reflects the radio wave and thus interferes the operations of RFID tags
- D. No, RFID tags only work with plastic products
Mounting or embedding RFID tags on metal can be tricky. Metal surfaces reflect energy emitted from RFID readers and create interference for RFID tag antennas, which means the tag isn't able to receive power and transmit information; however, specific RFID tags will work around metal sur-faces. RFID companies have patented technology that allows RFID to work when attached to metal surfaces and even embedded within metal products. As long as you choose the correct RFID equipment for your environment and application, you won't need to worry about interference from metal.
LO 1, AC 1.2
NEW QUESTION 26
Extra units that are held in inventory to reduce the risks of stock-out are called...?
- A. Reorder point
- B. Just-in-time
- C. Safety stock
- D. Demand variance
The safety stock (or buffer stock) is the stock level that limits stock shortages due to unforeseen events (forecasts not in line with demand, longer than expected supply time, etc...) Demand variance is the degree to which the demand in a fixed period deviates from the average demand of the same period.
A reorder point is the unit quantity on hand that triggers the purchase of a predetermined amount of replenishment inventory.
The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules.
LO 2, AC 2.1
NEW QUESTION 27
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