Pscm 331:Inventory Management Question Paper
Pscm 331:Inventory Management
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2013
INVENTORY MANAGEMENT (PSCM 331) 1ST TRIMESTER 2013
KENYA METHODIST UNIVERSITY
END OF 1''ST ''TRIMESTER 2013 (EVENING) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : ACCOUNTING, FINANCE AND INVESTMENT
UNIT CODE : PSCM 331
UNIT TITLE : INVENTORY MANAGEMENT
TIME: 2 HOURS
SECTION A (COMPULSORY)
Question One
Company Exol has recently posted its business indications of profitability, net sales and working capital. Over the years profitability has been decreasing and working capital increasing significantly. The insight from internal sources reveals that the reason for this high growth in working capital is highly contributed by inventories, primarily comprising of inputs and non-inputs of production process.
The board has hired your expertise to fix this problem once and for all so that the company can come back on track.
Required
Write a report to the board of directors highlighting how you would go about doing this and highlighting to them the reason of inventory control and management in the overall management of working capital. (15 marks)
Question Two
Discuss briefly the following inventory control and management terms and terminologies
Pull system
(3 Marks)
Push-Pull system
(3 Marks)
MRP II
(3 Marks)
Stock turn
(3 Marks)
Forecasting
(3 marks)
SECTION B (Answer any two questions)
Question One
Discuss the stakeholder expectations in the organization as far as inventory control and management is concerned based on the following functions (internal customers) (20 Marks)
Top Management
Operations department
Manufacturing department
Finance department
Sales and marketing department
Question Two
Storage is one of the key areas of inventory control and management. Discuss the benefits and objectives of storage in material management. (20 marks)
Question Three
Discuss the following inventory control and management concepts
Material Requirement Planning (MRP)
Enterprise Resource Planning (ERP)
Distribution Requirement Planning(DRP)
Vendor – Managed Inventory (VMI)
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