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Principles Of Purchasing(Pscm 210) Question Paper

Principles Of Purchasing(Pscm 210)

Course:Accounting, Finance& Investments

Institution: Kenya Methodist University question papers

Exam Year:2013

TIME: 2 HOURS
Instructions: Read the following case and answer the questions that follow.
Question One
Zalon Ltd is a leading industry player in the retail chain sector in Kenya. It is well established in a number of countries in the country. As a business strategy the company had embraced global sourcing. The business environment is dynamic especially in the supply market. As a matter of fact, the domestic supply market is not well developed because of unprofessional practices that grace the supply patterns. More so, the cultural diversities and stereotypes bedeviling the Kenyan market have played a negative impact on market development.
In the recent past, the company has experience unprecedented decline in sales which has led to a worrying increase in losses. Other companies in the domestic market have also offered Zalon fierce competition in all its stores leading to a major reduction in its revenues. The company now intends to focus on its competitive advantages in the supply market. The company is the process of recruiting a consultant to help in diagnosing the way forward.
Required
Explain the ways in which Zablon ltd may develop its domestic suppliers.
(10mks)
Discuss the consequences of the company’s decision to embrace global sourcing.
(12mks)
Highlight four competitive advantages that the company expects to access from its global suppliers.
(8mks)

Question Two
Describe the general procedure used by organizations to purchase their requirements.
(10mks)
Explain five uses of purchasing records
(10mks)
Explain five considerations in make or buy decisions.
(5mks)

Question Three
Explain five advantages of tendering method of purchasing.
(10mks)
Highlight five methods an organization would use in controlling stock levels.
(10mks)

Question Four
As a consultant, describe how you can help an organization to locate the best suppliers in the market.
(10mks)
Explain the aspect of negotiation that a purchasing officer would consider in order to win the best terms of contract.
(10mks)

Question Five
Discuss the benefits of ethical code in purchasing.
(10mks)
Explain the advantages of computerized systems in purchasing processes.
(10mks)

Principles Of Purchasing(Pscm 210) Question Paper

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