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A supplier delivers large quantities of inventory to its customer's store, but only charges for the goods as and when they are used. This can be described as...?

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Consignment stock

Components inventory

Multi-stage inventory

Multi-echelon stock

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Question 2

Long-term forecasting of demand using a subjective method is based on a...

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Predicted cash flow forecast levels used by the organisation

Method of calculating the price in detail within the supply chain

Qualitative, informal, experience-based, or intuitive method

Quantitative, explicit, statistical, or formal method

Question 3

An organisation might find it more beneficial to lease and use an asset over a predetermined period. After this period, the lessee has the right to secure an outright ownership of the asset by paying an agreed amount; otherwise, the asset would be repossessed by the lessor. Which of the following is an advantage of leasing?

Options:

Long-term commitment to pay instalments even if not using the asset

Costs are known and agreed in advance

The usage of the asset is usually capped

The total cost of ownership is not applicable as the asset is leased

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