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Pscm 331:Inventory Management Question Paper

Pscm 331:Inventory Management

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2013

INVENTORY MANAGEMENT (PSCM 331) 1ST TRIMESTER 2013

KENYA METHODIST UNIVERSITY

END OF 1''ST ''TRIMESTER 2013 (EVENING) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : ACCOUNTING, FINANCE AND INVESTMENT
UNIT CODE : PSCM 331
UNIT TITLE : INVENTORY MANAGEMENT

TIME: 2 HOURS

SECTION A (COMPULSORY)

Question One

Company Exol has recently posted its business indications of profitability, net sales and working capital. Over the years profitability has been decreasing and working capital increasing significantly. The insight from internal sources reveals that the reason for this high growth in working capital is highly contributed by inventories, primarily comprising of inputs and non-inputs of production process.

The board has hired your expertise to fix this problem once and for all so that the company can come back on track.

Required
Write a report to the board of directors highlighting how you would go about doing this and highlighting to them the reason of inventory control and management in the overall management of working capital. (15 marks)

Question Two

Discuss briefly the following inventory control and management terms and terminologies

Pull system

(3 Marks)

Push-Pull system

(3 Marks)

MRP II

(3 Marks)

Stock turn

(3 Marks)

Forecasting

(3 marks)

SECTION B (Answer any two questions)

Question One
Discuss the stakeholder expectations in the organization as far as inventory control and management is concerned based on the following functions (internal customers) (20 Marks)

Top Management
Operations department
Manufacturing department
Finance department
Sales and marketing department

Question Two
Storage is one of the key areas of inventory control and management. Discuss the benefits and objectives of storage in material management. (20 marks)

Question Three

Discuss the following inventory control and management concepts

Material Requirement Planning (MRP)
Enterprise Resource Planning (ERP)
Distribution Requirement Planning(DRP)
Vendor – Managed Inventory (VMI)

Pscm 331:Inventory Management Question Paper

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