Question 1

Which of the following is NOT one of The Chartered Institute of Procurement and Supply's (CIPS) five rights?&#10;A) Right Quality&#10;B) Right Place&#10;C) Right Flavor&#10;D) Right Price&#10;E) All are correct

Accepted Answer

The five rights of CIPS are Right Quality, Right Place, Right Time, Right Quantity, and Right Price. "Right flavor" is not one of the rights.

Question 2

In 2018, CIPS added a sixth, known as ________.&#10;A) Right Quantity&#10;B) Right Time&#10;C) Right Flavor&#10;D) Right Source

Accepted Answer

In 2018, CIPS added a sixth dimension to their model, which is "Right Source". The other five dimensions are Right Quality, Right Quantity, Right Place, Right Time, and Right Cost.

Question 3

The main objective(s) of the growing trend of contract farming is(/are) ________.&#10;A) Strong commitments&#10;B) Better pricing&#10;C) Secure Supplies&#10;D) B and C&#10;E) All of the Above

Accepted Answer

The growing trend of contract farming aims to achieve strong commitments from both sides, better pricing for farmers, and secure supplies for buyers. Therefore, all of the above options are the main objectives of contract farming.

Question 4

Transportation in food industry is more or less considered to be at peak efficiency and is not considered an industry priority.

Accepted Answer

Transportation in the food industry is a major priority as it can impact the quality and safety of the food being transported. It is also a significant cost for the industry, and efforts are constantly being made to improve efficiency and reduce environmental impact.

Question 5

_______ transport is considered expensive but fast, while _______ transport is considered cheap but slow.&#10;A) Air, water&#10;B) Water, land&#10;C) Land, air&#10;D) All are equal in cost and speed

Accepted Answer

Air transport is generally considered the fastest mode of transport but also tends to be the most expensive. Water transport, on the other hand, is usually slower but more affordable. Therefore, option A is the best choice. Option B and C are incorrect as they do not fit the criteria given in the question, and option D is also incorrect as it contradicts the premise of the question.

Question 6

As consumers become more aware of the sources of their food, one immediate concern they raise is the issue of _________; a measure of the distance food travels to reach the end user.&#10;A) Food miles&#10;B) Meals on Wheels&#10;C) Kilo-meaters&#10;D) Fruit-by-the-feet

Accepted Answer

Food miles is the term used to describe the distance food travels from the point of production to the point of consumption. Consumers are concerned about food miles because of the environmental impact of transportation, including carbon emissions, as well as the potential loss of freshness and nutritional value during prolonged transit. The other options (Meals on Wheels, Kilo-meaters, Fruit-by-the-feet) do not accurately describe this concept.

Question 7

The drawbacks to prepared meals include&#10;A) Convenience factor&#10;B) Higher prices&#10;C) Narrower range of foods&#10;D) B and C

Accepted Answer

Prepared meals are convenient for those who do not have time to cook, but they come with higher prices and a narrower range of foods compared to preparing meals at home. Therefore, the best choice is D, which includes both drawbacks.

Question 8

Which of the following services essentially defines the role of Fourth-party logistics providers (4PL)?&#10;A) Freight consolidation and distribution&#10;B) Oversee clients' logistics activities on both the supply and demand sides of the business while outsourcing the physical operations&#10;C) Cross-docking and in- and out-bound shipment management&#10;D) Freight bill payment, auditing, and production packaging

Accepted Answer

Fourth-party logistics providers (4PL) essentially define their role as overseeing clients' logistics activities on both the supply and demand sides of the business while outsourcing the physical operations. They serve as a strategic partner in managing the end-to-end supply chain for their clients, providing expertise in areas such as transportation management, inventory optimization, and network design. This differs from traditional third-party logistics providers (3PL) who primarily focus on physical logistics operations such as freight consolidation and distribution, cross-docking, and shipment management. Freight bill payment, auditing, and production packaging are also services offered by 3PLs but not defining their role.

Question 9

Which of the following is considered a niche market?&#10;A) Certified organic food products&#10;B) Kosher foods&#10;C) Special dietary needs&#10;D) A and C&#10;E) All of the above

Accepted Answer

All of the above options are considered niche markets because they cater to specific, usually smaller, segments of consumers with unique needs or preferences. Certified organic foods are targeted towards consumers who prioritize environmentally sustainable farming practices, while kosher foods are aimed at consumers who observe Jewish dietary laws. Special dietary needs refer to products that cater to individuals with allergies, intolerances, or other dietary restrictions.

Question 10

The creating logistics hubs and leveraging resources and services from multiple firms often increases the capabilities of an individual business.

Accepted Answer

By creating logistics hubs and partnering with other firms, businesses can share resources and expertise, which can lead to increased efficiency and capabilities.

Deck 10: Purchasing & Logistics