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Principles Of Purchasing Question Paper

Principles Of Purchasing

Course:Certificate Course In Management

Institution: Kenya Institute Of Management (Kim) question papers

Exam Year:2012

Certificate course in management

June 2012 Examination

Subject name: Principles of Purchasing
Date: 6th June 2012

Time: 3 Hours

Instructions
1. Write your index number in the space provided in the answer booklet.
2. Answer any five questions
3. All questions carry equal marks
4. No writing should be done on this question paper
5. Candidates who break KIM examination rules and regulations or commit any malpractice will be Disqualified

1. In the purchasing process, negotiation for contracts and orders is necessary. Highlight the objectives of negotiation. (12 marks)

b) Explain the purpose of vendor rating in the supplier relationship management.
(8 marks)

2. Describe the stages involved in purchasing cycle (10 marks)

b) Explain how an organization would reduce expediting costs (10 marks)

3. Explain the contribution of purchasing function to profitability and efficiency of an enterprise. (12 marks)

b) Explain the elements which constitute the cost of stock out in an organization.
(8 marks)

4. Explain the reasons why an organization may use supply cahin management in organizing its purchasing department. (10 marks)

b) Explain the advantages of a devolved system of purchasing. (10 marks)

5. Purchasing staff should be aware of the m ajor trade, national and international standards applicable to the industry. In light of this statement, explain the advantages of standardization (12 marks)

6. Explian the factors that may determine the ordering quantities of stock (10 marks)

b) Explain the benefits to an organization of the use of standing ordedrs when procuring its requirements. (10 marks)

7. Explain the various techniques which c an be applied in reducing distribution costs (10 marks)

b) Explain the causes of redundant and obsolete items (10 marks)

Principles Of Purchasing Question Paper

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