Get premium membership and access revision papers, questions with answers as well as video lessons.

Dbmg 104: Purchasing &Amp; Supplies Management Question Paper

Dbmg 104: Purchasing &Amp; Supplies Management

Course:Purchasing & Supplies Management

Institution: Kenya Methodist University question papers

Exam Year:2008

KENYA METHODIST UNIVERSITY

END OF FIRST TRIMESTER 2008 EXAMINATION

FACULTY : BUSINESS AND MANAGEMENT STUDIES
DEPARTMENT : BUSINESS ADMINISTRATION
COURSE CODE : DBMG 104
COURSE TITLE : PURCHASING & SUPPLIES MANAGEMENT
TIME : 2 HOURS

INSTRUCTIONS
• Answer Question ONE(compulsory) and any other TWO Questions

Question 1
a) Highlight the assumptions upon which the economic order quantity (EOQ) concept is based in relation to stock control in an organization. (10marks)

b) An organization uses product X in its operations. The following information relates to the product:
Unit price sh.70
Cost of 4 orders sh.1200 per annum
Stock holding cost sh.2 per item
Monthly usage rate 300 units

Determine the Economic Order Quantity (EOQ). (10marks)

Question 2
a) Explain five measures which a distribution firm should take to enhance efficiency in the movement of its goods. (10marks)

b) Highlight the benefits an organization may derive from using road transport as a mode of transporting its goods. (10marks)

Question 3
a) Explain the various parties that may influence the decision on the quality of the items that organization buys. (10marks)

b) Explain the features of an efficient stores lay out in an organization. (10marks)

Question 4
Highlight the four phases in which purchasing has developed over the year. (20marks)
Question 5
a) Explain the following terms:
i) Environmental procurement. (2marks)
ii) Proactive procurement (2marks)
iii) Procurement positioning (2marks)

b) It is not the case that any organization will wish to develop mutual relationship with all its suppliers. With the help of a tool based on the work of Kraljic (1983), determine factors to consider in determining those suppliers with whom to develop close relationships. (14marks)

Dbmg 104: Purchasing &Amp; Supplies Management Question Paper

More Question Papers

Popular Exams