L5M10 paper 2

!Kane Manufacturing produces medical devices. The manufacturing process, from start to finish, goes through five different stages. The final stage is a packing machine. The other machines could run much faster but the packing machine, even though it is running at full capacity, limits the throughput. Which of the following relates to the situation caused by the packing machine?

!Services organisations must accept that they cannot provide something of substance to customers that could be used as a measure of service quality. Is this statement valid?

@The concept of ‘battle of forms’ relates mostly to which of the following?

!Which term describes the order in which tasks must be executed in production?

@Samson has made an offer to James to sell his 5-year old vehicle for an amount of $40 000. James is intending to accept the offer made to him but wants to ask for more information about the product before accepting. However, he is worried that Samson may see him as challenging the offer and might terminate it. Does James have a valid reason to be worried?

@Which of the following are correct examples of an invitation to treat?

@A large financial services organisation (FSO) is entering into a long term contract with a supplier for the provision of information technology (hardware, software and support). The FSO anticipates that there will be a need for the contract to change from time to time during its term. To facilitate this, which type of clause should be included within the contract when it is set up?

!Re-useable packaging systems will require a ...

@Which of the following will terminate an offer?

!Logistics Operations (LO) is a large and expanding organization. Its vehicle fleet has grown considerably in recent years. All vehicles are leased and this involves LO making significant monthly payments. LO has also increased its permanent full-time headcount of drivers. In addition, six months ago it entered a long-term lease for an additional warehouse, which has also increased LO's costs. However, during this time through the implementation of strict controls, unit variable costs have remained the same while its revenues have fallen. Overall, total costs have grown more quickly than revenues. Which of the following are LO's main issues?

@An invitation to treat should not be treated as an offer. Is this statement correct?

!A major retailer has been focusing on its returns policy. It has decided to encourage customers to return old products in exchange for rebates when purchasing new ones. In addition, the company will pay a small fee for all used returned products. This encourages end-users to properly dispose of items. Which of the following return management strategies does the company follow?

@Super Clean Group (SCG) is a large facilities management organisation. One of its procurement officers (PO) has a meeting with a cleaning company about a potential future contract. The cleaning company has already submitted a quote to the PO, based on a specification that was provided. The PO explained that he had the authority to commit SCG to the contract and confirmed that the price was acceptable for the services being offered. The PO and the cleaning company agreed that the contract would commence in one month’s time. In addition to the offer and acceptance which of the following from this scenario makes this a legally binding contract?

@TBRF Supplies is a stationery manufacturing organisation. They market themselves by going from organisation to organisation to offer their products to corporate businesses. They made an offer to BITEND Investment. Their offer is to supply 100 reams of plain papers per month for a E.P.M Page 3 price of $800.00. BITEND Investors wants to accept the offer but asks TBRF Supplies to add a box of pens for the same price. This is an example of...

!When an organisation needs to increase or decrease capacity, it must consider how this will be achieved. This is a key decision for the organization, and investment decisions will be based on the level of capacity selected and when it is to be provided. Which of the following strategies could an organisation use to ensure it can respond immediately to an anticipated increased demand?

@A buyer has not been managing contract delivery since the agreement was created a year ago. The supplier has not been delivering what was required, although the procurement organisation has been paying its monthly invoices for the last year. In all likelihood, the courts would regard this situation as...

!Resourcing for returns management is straightforward as customer returns are usually easy to predict. Is this statement correct?

@. In relation to contract formation, completion of both offer and acceptance constitutes which of the following?

@For consideration to be valid, it must consist of which of the following requirements. Select the TWO that apply

!Customer dissatisfaction levels have increased. A small number of these customers have been identified. Would an online survey be the best method of obtaining detailed feedback from them about their experience of customer service?

@Where a company is bidding for a contract but it has a poor credit rating, the procurement organisation could obtain which of the following from the parent company to reduce the risk?

!Lack of sufficient capital is an internal factor that can lead to production bottlenecks and capacity constraints. Is this statement correct?

@Which element of a legally enforceable contract constitutes a form of mutual exchange by the contracting parties?

@Tee Mobiles (TM) is a mobile phone manufacturing organisation based in Germany. They have their small manufacturing branch named TZA Mobiles located in South Africa. TZA Mobiles was set up to provide a service to a number of African countries. SELL IT Technologies, a mobile phone retailer has placed an order for 5000 mobile phones from TZA Mobiles. Which of the following should SELL IT Technologies request from Tee Mobiles for in case TZA Mobiles fails to meet SELL IT Technologies’ requirement?

@Which of the following are the requirements of an acceptance? Select THREE that apply.