1. Which of the following activities can be included in contract management for suppliers ?

. Periodic status report.

. Gantt chart.
. First article inspection.
. Status review meetings.
Ans: All,
2. Accuracy of MRP system is responsible for the function of
A. Production. B. Material. C. Development. D. Engineering.
Ans: B
3. The purpose of purchasing is to buy the :
A. Lowest cost product. B. Lowest total cost product.
B. Highest quality product. D. Product which can be delivered fastest.
Ans: B

4. When a supplier has been certified and has been reliably delivering products to a
company, often times the company will develop a process, whereby, purchase orders are no
longer necessary. The product will arrive at the dock, bypass inspection and counting, and be
delivered to the production line. This delivery location on the production line is called a :
A. Point of use location. B. Consignment location.
C. Dock to stock location. D. VMI location.

Ans:A

In a VMI system of inventory, who is responsible for maintaining the inventory levels at the
proper levels to ensure high customer service levels ?
A. Planners. B. Suppliers. C. Buyers. D. Supplier scheduler.
Ans: