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Pscm 331:Inventory Managemnt Question Paper

Pscm 331:Inventory Managemnt

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2012

INVENTORY MANAGEMENT (PSCM 331) 3RD TRIMESTER 2012

KENYA METHODIST UNIVERSITY

END OF 3''RD ''TRIMESTER 2012 (EVENING) EXAMINATIONS
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : ACCOUNTING, FINANCE & INVESTMENTS
UNIT CODE : PSCM 331
UNIT TITLE : INVENTORY MANAGEMENT

TIME: 2 HOURS

Instructions: Answer Questions ONE and any TWO other Questions.

Question One

The company you work for is now embracing inventory management as an important aspect of management. The managers have realized the cost implications in proper management of inventory. Having completed a course in inventory management, the managers have requested you to give a talk highlighting the following.

The general purposes of carrying inventory.

(5 Marks)

Various costs accrued due to inventory management.

(5 Marks)

Description and importance of the following terms:

(20 Marks)

In –transit inventory
Lead time
ABC analysis
Reverse logistics
Economic Order Quantity (EOQ)

Question Two

Inventory items in an organization are classified into various groups.

Discuss THREE broad categories that inventory can be classified into.
What are the advantages of classification of inventory.

(8 Marks)

What are some dangers/risks that would be incurred if inventory was not classified.

(6 Marks)

Question Three

The company you work for has been having a discussion on standardization and its effect on inventory management.

Define standardization in inventory management context.

(2 Marks)

Describe various methods of standardizing products.

(6 Marks)

Discuss various advantages of standardization that are of benefit in a large manufacturing organization.

(10 Marks)

Describe TWO situations where standardization is not preferred.

(2 Marks)

Question Four

ABC analysis is an important tool to control the inventory investment in an organization. Discuss.

(10 Marks)

Obsolenscence is a major aspect of inventory management.

(i) What measures should a manager take to avoid obsolescence. (5 Marks)
(ii) How should a company handle obsolete parts. (5 Marks)

Question Five

Discuss the role of computerization in inventory management.

(5 Marks)

Discuss various methods of handling customer returns and reverse logistics.

(8 Marks)

Describe areas that are affected by the health and safety of work Act 1974.

(7 Marks)

Pscm 331:Inventory Managemnt Question Paper

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