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2903/101: Supply Chain Management And Purchasing Principles Question Paper
2903/101: Supply Chain Management And Purchasing Principles
Course:
Institution: Nairobi Technical Training Institute question papers
Exam Year:2011
This paper consist of seven questions.
Answer any five questions.
1. (a) Highlight the advanatages to the organisation adopting a decentralised purchasing structure (10 marks)
(b) One of the methods of describing the quality of an item is by the use of its brand name.
As a procurement officer, outline the circumstances umder which description by brand name may
be used. (10 marks)
2. (a) Explain six areas of liason between purchasing department and marketing department in an
organisation. (12 marks)
(b) Highlight four methods of specifying materials requirement in an organisation. (8 marks)
3. (a) In price analysis, a quoted price is compared with a competing prices. Outline six bases on which
such comparison can be made. (12 marks)
(b) Jambo company Limited has decided to adopt a single sourcing policy. Highlight four advanatges to
the organisation of adopting the policy. (8 marks)
4. (a) Chao Company Limited has adopted for a cost-type contract whn buying its materials requirements.
As a purchasing officer, outline four circumstances that could have led to this decision. (12 marks)
(b) Jee Jee Company Limited has decided to consolidate its orders when purchasing materials requirements.
Explain the reasons which could have led to this decision (12marks)
5. (a) Tee Tee Company Limited has decided to adopt 100 per cent inspection of incoming materials. Highlight
the circumstances that could have led to the adoption of this policy. (10 marks)
(b) Explain the factors to be considered before selecting the method to be used to pay for purchased
goods. (10 marks)
6. (a) Highlight the preparations that should be made before the receipt of incoming goods from the
suppliers (10 marks)
(b) Highlight the components of physical distribution in supply chain management (10 marks)
7. (a) Highlight the uses of promissory notes in paying suppliers. (10 marks)
(b) Exlain five factors to be considered in selecting the appropriate mode of transport. (10 marks)
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