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Purchasing And Procurement Management(Pscm 332) Question Paper

Purchasing And Procurement Management(Pscm 332)

Course:Accounting, Finance& Investments

Institution: Kenya Methodist University question papers

Exam Year:2013

TIME: 2 HOURS
Instructions: Answer question One and any other two questions.
Question One
Baraka investment limited is a manufacturing organization sourcing for raw materials from within and outside the country. The managing directors realizes that the purchasing operations are skewed due to the following findings by him.
That each department has a purchasing manager
There are no model contracts in the company
That there several complaints from the suppliers due to late payment of their dues, breach of contract for not taking agreed quantities of the raw materials and several alleged cases of theft of the raw materials from the warehouse.
The managing directors thoughts are that such purchasing operation are not sustainable and has sought your advise on the way forward.
Required
What would be your advice on creation of a central procurement department and its roles? Give your recommendation to address each of the findings. (30mks)

Question Two
Write short notes in regard to the following legal terms
Misrepresentation
Duress
Specific performance
Damages.
(20mks)

Question Three
Give a detailed account of the role of the purchasing manager in cost reduction and efficiency improvements. (20mks)

Question Four
Discuss the advantages of sub-contracting.
(10mks)
Explain the procedure that you would use to select an appropriate procurement strategy.
(10mks)

Question Five
The just-in-time (JIT) purchasing has impressive benefits. It however has serious problems which are not operational in nature, but are ’people problems’ discuss such problems. (20mks)

Purchasing And Procurement Management(Pscm 332) Question Paper

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