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Principles Of Purchasing B(Pscm 210) Question Paper

Principles Of Purchasing B(Pscm 210)

Course:Accounting, Finance& Investments

Institution: Kenya Methodist University question papers

Exam Year:2012

TIME: 2 HOURS
Instructions:
Question One
You are starting a new organization that deals in selling of spare parts. The new premises are big and requires help in cleaning serviced and provision of security. A number of people have advised you to hire people and put them on a payroll to help in those non-core functions. However, you also have the option of hiring an outside firm to do this for you. Discuss your view of this situation while highlighting all angels of this case.
(10mks)
Discuss the purchasing operating procedures using practical examples.
(10mks)
Differentiate the following terms
Outsourcing Vs in sourcing
Purchase inquiry Vs purchase specification
EDI Vs capital equipment
Supplier selection and purchase description
Invoice and delivery note.
(10mks)

Question Two
Describe the differences between "purchasing and supplier’s management" and "purchasing and material management" and identify the possible scenarios where each practice is likely to be used.
(10mks)
What is negotiation and how can it be used to support the five principles or rights of purchasing.
(10mks)

Question Three
One of the responsibilities of the purchasing function is to manage the purchasing process efficiently and effectively. Discuss the advantages and disadvantages of each of the following structure as used in purchasing management.
(15mks)
Discuss the advantages and disadvantages of a centralized structure.
Discuss the advantages and disadvantages of decentralized structure.
Discuss the benefits of putting in place an organizational structure in a purchasing function.
(5mks)

Question Four
Right quality is one of the five principles of purchasing. Analyse two methods a purchasing officer can use to ensure the firm is buying the right quality of materials.
(10mks)
Some organization value purchasing while others give it little attention. Describe four factors that determine the importance of purchasing in an organization.
(10mks)

Question Five
Discuss the meaning and features of the make/buy decision as used in purchasing.
(10mks)
Describe the advantages of outsourcing to a firm.
(10mks)

Principles Of Purchasing B(Pscm 210) Question Paper

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