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A procurement manager has agreed a contract for the acquisition of a piece of capital equipment and has negotiated a staged payment contract of 30% with order, 30% on delivery, and the remaining 40% on acceptance testing. Was this the right thing to do?

A.

No, as it commits the organization to purchasing the equipment and the supplier to deliver it

B.

Yes, as the payments can be linked directly to a specific performance milestone of the contract

C.

Yes, as it means the contract warranties are easier to change

D.

No, as it is an unfair contract term and places the supplier at a disadvantage in the contract

Which of the following are the key elements of total productive maintenance?

1. Reactive maintenance

2. Quality maintenance

3. Deferred maintenance

4. Autonomous maintenance

A.

1 and 3 only

B.

2 and 4 only

C.

1 and 2 only

D.

2 and 3 only

A warehouse manager is evaluating the use of Automated Guided Vehicles (AGVs) within a repetitive task environment. After reviewing their use and price, the manager decided to invest in several AGVs. Were they correct in doing this?

A.

Yes, as it will reduce the costs of employing labour

B.

No, as it reduces the flexibility of the warehouse operations

C.

Yes, organisations must use high-tech solutions where possible

D.

No, as they are only suitable for use in non-repetitive task environments

Which of the following are examples of subjective methods of forecasting? Select TWO that apply.

    Trend line analysis

    Moving averages

    Market research

    Expert opinion

    Seasonal variations

A.

1 and 2 only

B.

3 and 4 only

C.

2 and 5 only

D.

1 and 5 only

Removal or disposal of assets should depend on an assessment of which of the following? Select TWO that apply.

A.

Consumer demand for the product

B.

The current rate of interest for new equipment

C.

Location of the equipment and accessibility

D.

The total cost of the equipment

E.

Type of equipment and incorporated components

Which of the following can replace pallets as bases for unit loads but they require push pull acces-sories to retrieve or discharge unit load?

A.

Shrink wraps

B.

Post pallets

C.

Skids

D.

Slip sheets