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Dbmg 104: Purchasing And Supplies Management Question Paper

Dbmg 104: Purchasing And Supplies Management

Course:Purchasing And Supplies Management

Institution: Kenya Methodist University question papers

Exam Year:2008

KENYA METHODIST UNIVERSITY

END OF SECOND TRIMESTER 2008 EXAMINATIONS

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

INSTRUCTIONS:
• Answer any THREE Questions in Section A and any TWO questions in Section B

SECTION A
Question 1
The purchasing and supplies department is expected to control its activities in an organization in order to contribute to the cost reduction objective.

Explain ways in which these activities could be controlled in this regard. (10 marks)

Question 2
It is routine in many organizations to inspect incoming materials on delivery as a quality control measure.

Outline factors that may render this arrangement ineffective in meeting quality expectations. (10 marks)
Question 3

Proper stores lay-out is one of the indicators of warehousing efficiency in an organization.

Explain factors that a stores supervisor should consider when devising the stores lay-out. (10 marks)
Question 4
Identify and explain types of costs that are associated with the maintenance of a warehousing building. (10 marks)

SECTION B

Question 5
(a) One of the techniques that an organization may apply in controlling its stock is the re- order level system.

Explain the advantages to the organization of applying this technique. (10 marks)

(b) Jambo Truck Ltd, a large distribution firm is in the process of evaluating the performance of its distribution system.

As a supplies expert, outline and explain factors that would be covered in the evaluation. (10 marks)

Question 6
(a) Draw a clear distinction between quality control and quality assurance. (4 marks)

(b) Statistical Process Control (SPC) is one of the methods that ensure that quality capability is possessed by an organization.

With the help of a clearly well labeled diagram explain how it is used in the prevention of defective materials or service.
(16 marks)

Question 7
(a) Explain some of the ethical issues that may arise from a firm’s procurement activities. (10 marks)

(b) Identify and explain the circumstances under which an organization would find it necessary to expedite its orders.
(10 marks)

Dbmg 104: Purchasing And Supplies Management Question Paper

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