POLYTECHNIC OF NAMIBIA

Transcription

1 t POLYTECHNIC OF NAMIBIA SCHOOL OF MANAGEMENT SCIENCES DEPARTMENT OF MANAGEMENT PURCHASING & SUPPLY CHAIN MANAGEMENT BACHELOR OF BUSINESS ADMINISTRATION/BACHELOR OF BUSINESS MANAGEMENT 21 BBAD/07BMA SUBJECT CODE: PSM321S/BPM611S DATE: June 2015 DURATION: 2 Hours MARKS: Maximum 100 EXAMINERS: MR. J. V. Olu Ojo MODERATOR: MR. S. Luwizhi 1st OPPORTUNITY EXAMINATION PAPER (This paper consists of 5 pages including this front page) INSTRUCTIONS 1. Write clearly and be tidy. 2. Answer all the questions. 3. Questions 1 to 20 should be answered on the attached Multiple Choice Answer sheet. 4. Choose only one option when answering the multiple choice questions. 5. Include the Multiple Choice Answer Sheet in your Examinations Answer Book..,, '

2 Section A - Multiple Choice Questions 1. The final step in the typical purchasing cycle for materials is.... a) Audit the invoice b) Ordering and contracting. c) Origin of the need d) Measuring Supplier Performance e) None ofthe above 2. The five "right objectives" of purchasing are... a) Quality, Quantity, Price, Time, Place b) Cost, Service, Specifications, Time, Quantity c) Place, Time, Price, Ethics, Contract d) Agent, Supplier, Contract, Price, Quantity e) Logistics, Time, Quality, Price, Quantity. 3. The term supply management is broader than the purchasing function because it... a) includes marketing b) includes operations c) includes managing relationships with suppliers d) includes negotiating enforceable contracts e) Includes measuring the total cost of ownership. 4. Strategic sourcing differs from tactical purchasing in that this activity periodically.... a) Analyses the organization's spending b) Analyses the supply market c) Develops sourcing strategy and plans d) Outsources basic business services such as security e) a), b) and c) 5. Which of the following is not one of the three types of buyer supplier relationships discussed in your lecture notes? a) transactional b) transcendental c) Collaborative d) Alliance 6. From a strategic level, which of the following items is the most logical to outsource? a) An item that can be bought and sold in a commodity exchange b) An item that is critical to the success of the product c) An item that requires specialised design, manufacturing skills or equipment d) An item that fits well within the firm's core competencies 7. Which of the following points is not considered a danger of outsourcing? a) Loss of control b) Loss of client focus c) Loss of centralization d) Loss of clarity e) Loss of cost control One of the following is not an objective of Purchasing and Supply Management: a) To maintain and develop the quality of purchased products and services as well as internal service delivery b) To contribute to the development of overall business strategies c) To ensure that a timely, costeffective and comprehensive information system is in place d) To ensure gender sensitive purchasing of materials 9. The purchasing function has become important due to one of the following reasons: a) The globalisation of world trade and global competition b) Organisations have adjusted business strategies and organisational structures to become more internationally oriented c) Rapid development of information technology d) a), b) and c) e) a) and b) 10. The position of purchasing and supply function in an organization is influenced by.... a) Contribution of purchasing to enterprise's profit. b) The quality of materials being purchased c) Extent of monetary value of purchasing expenditure...

3 d) The qualification of the Head of Purchasing & Supply Department. e) a) and c) 11. One of the advantages of decentralized structure for Purchasing and Supply function is... a) Greater autonomy for profit centres b) Wider publicity for the organization c) Greater opportunities for Head Office staff to visit the branches. d) Expansion of market share of the organization's products 12. A number of key aspects and issues are covered in strategy development. This does not include: a) Vision b) Problems c) Purpose d) Values e) Objectives 13. A SWOT analysis helps determine the true capabilities of the supply chain when compared to the best in its industry, as well as all the potential competitors. Which one of the following does NOT represent one of the words for this acronym? a) Opportunities b) Weaknesses c) Strains d) Threats e) St~engths 14. The need for materials is communicated to the purchasing function through the use of one of the following: a) Phone Calls b) s c) Purchasing Requisition d) All of the above e) None of the 15. The source document for many activities after an order has been placed is.... a) Purchasing requisition b) Material list c) Kanban d) Invoice e) None ofthe above 16. The role of Purchasing function in Corporate Governance is.... a) Sustainability b) To act ethically and lawfully c) To provide intimate knowledge of products/ services being purchased d) b) and c) e) a), b) and c) 1 7. The total fixed cost per unit item produced remains.... a) Constant (Same) whether number of products increases or decreases b) Increases as the number of products decreases c) Increases as the number of products increases d) Decreases as the number of products decreases Fraud is defined as..... a) Obtaining an advantage dishonestly b) Wastage of resources c) Incompetence at work d) Avoiding an obligation e) a) and d) 19. Which of the following is NOT used for evaluation of supplier? a) Quality b) Cost c) Delivery, d) Number of Employees. 20. Which of the following tasks are required in the 'pre-award phase' of the purchasing cycle? a) Identification of needs and producing specifications if required b) Expediting, reviewing progress and processes c) Reviewing quotations, ga1n1ng authorisation and placing orders d) Assessing supplier performance and checking invoice details if required. e) All of the above. SUBTOTAL: 20 X 1 = 20 marks.. o. ~ '~

4 Section B -Analysis and Discussion Questions Question 1 - (20 marks) Discuss the process to follow for supply chain strategy development and implementation. Illustrate with a flow chart Question 2 - (20 marks) a) Demonstrate with the use of a diagram and explanation the various steps involved in a purchasing transaction (5 marks) b) Use a flow diagram to illustrate the aligning of transaction documents and parties involved to activities in the purchasing procedures (1 Omarks) c) Explain the influence of automation on the execution of the different activities in the purchasing process (5 marks) Question 3 - (20 marks) Explain the Strategic sourcing process, development of the strategy for supply of various items and relationship management of the various suppliers. (20 marks) Question 4 - (20 marks) a) Discuss the role of Purchasing and Supply Management in Corporate Governance (1 0 marks) b) Give concise and clear examples on how each of these roles has been carried out by business organizations and/or institutions in Namibia (1 0 marks) 4

5 Subject code: p 5 M s B p M s Student number: Surname: Initials: Date: Multi pie Choice Answer Sheet a b c d e a b c d e ATTACH THIS MULTIPLE CHOICE ANSWER SHEET TO YOUR ANSWER BOOK 5