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Principles Of Purchasing(Pscm 210)  Question Paper

Principles Of Purchasing(Pscm 210)  

Course:Accounting, Finance& Investments

Institution: Kenya Methodist University question papers

Exam Year:2013



TIME: 2 HOURS
INSTRUCTIONS
Answer question one and any other two questions.
Question One
Read the following case and answer the question
Amina-link is a small chain animal feeds store located in Makutano area of Meru town. It is part of a large anima feed group, welcome foods and veterinary services (WFVS) which owns more than 100 stores and vet services in the mount Kenya region. WFVS has centralized administration in the greater Meru region and all requirements are ordered from there and then delivered to the sites. Individual local managers are responsible for the maintenance and equipment purchasing. Anima-link requires a grain/seed mixer machines for chicken in order to deliver a quality product to its growing number of customers
Explain the meaning of a purchasing task
(6 Marks)

Describe the process that WFVS should follow to purchase the seed mixer.
(12 marks)

Explain at least two types of the tendering process that animal – link might use.
(6 Marks)

Explain the roles of purchasing and supply in business organizations.
(6 Marks)

Question Two
Your company needs to purchasing stationary and cleaning services for the organization. Describe the steps you would take to ensure the product and services meet the needs of the organization.
(10 Marks)

Explain the differences between centralized and decentralized purchasing departmentation and state the advantages and disadvantages of each.
(10 Marks)

Question Three
Describe the typical process of tendering.
(10 Marks)
Explain the key composition of a tendering committee and the function they ought to perform

Question Four
Explain the key elements of a purchasing management process. (20 Marks)

Question Five
Recommend the style of relationship that is appropriate in a supply agreement.
(10 Marks)
Explain the meaning of the term e-procurement.
(2 Marks)
What factors would you consider before implementing an e-procurement system in your organization?
(8 Marks)






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