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Ldp 108: Purchasing Principles And Techniques Question Paper

Ldp 108: Purchasing Principles And Techniques

Course:Diploma In Purchase And Supplies Management

Institution: University Of Nairobi question papers

Exam Year:2010

Q1. a) Expenditure on capital equipment differs from that of materials and components.
Explain five characteristics of capital expenditure. (10 marks)
b) Explain five importance of analysis of market condition to sourcing. (10 marks)
c) For any business enterprise to achieve its stated objectives and thrive, practical ethical principles must be observed. Discuss some practices done by purchasing enterprise managers that may be deemed as unethical. (10 marks)

Q2. a) You have been appointed a Purchasing Manager for a large retail establishment serving different customers in a competitive market. On taking up the appointment, you realize that a few of your merchandise are sourced from monopoly suppliers. Explain five risks that the firm is likely to face from such suppliers. (10 marks)
b) Explain five factors that would influence a supplier in making pricing decision for his materials in the market. (10 marks)

Q3. a) Discuss the advantages of open tendering process as a method of sourcing. (10 marks)
b) Explain why capital acquisition different from raw material acquisition? (5 marks)
Q4. a) State 3 types of suppliers that the purchasing department may consider in its decision making on sources of its products. (3 marks)
b) Explain factors that a purchasing officer considers in the selection of suppliers of a particular commodity. (12 marks)
Q5. a) What do you understand by the term ‘negotiation’ in supplies management? (2 marks)
b) For every purchasing officer to buy a product he/she should negotiate. Explain the areas of the product that the involved parties should deliberate on? (3 marks)
c) State the meaning of purchasing cycle and discuss the steps involved in purchasing procedure. (10 marks)

Ldp 108: Purchasing Principles And Techniques Question Paper

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