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Diploma One Supplies And Transport Management Past Paper Question Paper

Diploma One Supplies And Transport Management Past Paper

Course:Diploma In Business Administration

Institution: Machakos University question papers

Exam Year:2010

End of term exam
Time: 2 Hours

Instructions
1.Answer all questions

1.Explain FIVE distinguishing factors between open tendering and quotation as methods of procurement. (10 Marks)

2.From the following data obtained from the stock ledger of product X, calculate and determine:-
(i) Economic Order Quantity (EOQ).(5 Marks)
(ii) Express the EOQ in value.(1 Mark)
(iii) For how long will the EOQ quantities last.(2 Marks)
(iv) How many times to order before the year end 2 Marks)

Usage rate: 200 units per month
Unit price: 20/= per unit
Holding cost: 2/= per unit
Ordering cost:400/= per order

3.Identify the various areas of interrelationship between purchasing departments and:

(a) Finance department (10 Marks)
(b) Human Resource Department (10 Marks)

4.Give the various factors to consider before making a decision on the type of procurement method to adopt in procurement.(10 Marks)

5.(a) Explain why organizations hold stock. (10 Marks)
(b) Describe the various limitations of EOQ.(10 Marks)

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