Answer to Question 1
Inbound logistics processes receive, store, and disseminate product input. Processes in inbound logistics include procurement, managing inventory, and evaluating potential suppliers.
Procurement is an operational process that acquires goods and services. Procurement activities at a pizza shop include ordering ingredients and boxes, as well as receiving and paying for those items. Inventory management processes use past data to compute stocking levels, reorder levels, and reorder quantities in accordance with inventory policy. An example of a strategic inbound logistics process is the evaluation of potential suppliers. When the pizza shop orders ingredients, it only uses suppliers who were previously approved by the strategic process called supplier selection.
Answer to Question 2
TRUE
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