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Ldp 101: Introduction To Purchasing And Chain Management Question Paper

Ldp 101: Introduction To Purchasing And Chain Management

Course:Diploma In Purchasing And Supplies Management

Institution: University Of Nairobi question papers

Exam Year:2011

INSTRUCTIONS

Answer question ONE and any other TWO questions

QUESTION ONE

a) Outline four reasons for materials management in a business organization. (4 marks)

b) Examine four objectives of purchasing in a business enterprise. (4 marks)

c) Outline four duties of a stock control officer. (4 marks)

d) Describe four objectives of standardization. (6 marks)

e) Explain the following terms:

i) F.O.B. price
ii) F.A.S. price
iii) F.O.R. price (6 marks)

f) Discuss four merits of standardization. (6 marks)

QUESTION TWO

a) Outline four reasons as to why a firm would hold stock. (4 marks)

b) State any five assumption of the EOQ (5 marks)

c) A company has a constant demand of 83600 units. Each unit cost Sh. 78. The carrying cost is Kshs. 150 per order and the holding cost is 15% of the unit cost. Assume there are 265 working days.

i) Calculate the EOQ. (3 marks)
11) Determine the optimal number of orders (2 marks)
iii) Determine frequency of orders (2 marks)
iv) Determine the total cost of the E.O.Q. (4 marks)

QUESTION THREE

a) Discuss five factors guiding the selection of right supplier or source of purchasing. (10 marks)

b) Discuss the risk involved in Hand-to-mouth purchasing system. (10 marks)

QUESTION FOUR

a) Discuss the main problem that you would encounter in global sourcing (10 marks)

b) Explain the essential characteristics of forward purchasing. (10 marks)

QUESTION FIVE

a) (i) Describe the two-step binding procedure (6 marks)

(ii) Outline four condition under which the two-step binding is used. (6 marks)

b) Discuss in details the various costs associated with inventories. (8 marks)

Ldp 101: Introduction To Purchasing And Chain Management Question Paper

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