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Ldp 104/Dbm 112: Material Production And Control Strategies Question Paper

Ldp 104/Dbm 112: Material Production And Control Strategies

Course:Diploma In Business Management

Institution: University Of Nairobi question papers

Exam Year:2011

UNIVERSITY OF NAIROBI
SECOND SEMESTER EXAMINATIONS

EXAMINATIONS FOR THE DIPLOMA IN BUSINESS MANAGEMENT/DIPLOMA IN PURCHASING AND SUPPLIES MANAGEMENT

LDP 104/DBM 112: Material Production and Control Strategies

INSTRUCTIONS: Answer Question ONE and any other TWO questions.

QUESTION ONE
a. Discuss five principal stages of materials flow in an organization as a result of efficient materials management. (10mks)

b. Explain five benefits that will accrue to an organization as a result of efficient materials management. (10mks)

c. Explain five factors that determine the fixation of maximum and minimum stock levels in an organization. (10mks)

QUESTION TWO
a. A product design is a repetitive task for new product development and modification of existing products. State and explain the steps involved in new product development. (14mks)

b. Highlight six advantages of Just-In-Time material production. (6mks)

QUESTION THREE
a. Discuss three methods of production. (6mks)

b. Explain two factors that may influence the choice of a production process. (4mks)

c. Explain the costs that are associated with stock holding. (10mks)

QUESTION FOUR
a. Highlight three basic assumption of economic order quantity. (3mks)

b. Given that the annual demand for a story book is 60,000 units. Ordering is Ksh. 25 per order and holding cost is Ksh. 3 per item per year. The number of working days per year is 240 days.

Required:
i. Calculate EOQ (3mks)
ii. Total cost (4mks)
iii. Number of orders (2mks)
iv. Expected time between orders (2mks)
v. Daily demand (2mks)
vi. If lead time is 3 days, calculate re-order point. (2mks)
vii. If lead time is 5 days, calculate re-order point. (2mks)

Ldp 104/Dbm 112: Material Production And Control Strategies Question Paper

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