W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2014/2015
FIRST YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE
OF BACHELOR OF PURCHASING AND SUPPLIES MANAGEMENT
HPS 2104: SUPPLIES AND MATERIALS MANAGEMENT I
DATE: AUGUST 2014 TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS
Question One (30 Marks)
a) E – procurement technologies are beneficial to organizations that adopt them. List seven of these benefits. (7 Marks)
b) What does ESI stand for, and why is it important? (3 Marks)
c) Differentiate between:
(i) Recurring revenue items and non – recurring revenue items. (4 Marks)
(ii) Standardization and simplification. (4 Marks)
d) Storage facilities are designed around four primary functions. List these functions. (4 Marks)
e) Differentiate between the following tendering procedures:
(i) Open procedure and negotiated procedure. (4 Marks)
(ii) Negotiated procedure and competitive dialogue. (4 Marks)
Question Two (20 Marks)
a) Description by brand or trade name is an indication of the confidence the purchaser has in the supplier. Explain four circumstances whereby description by brand is desirable and necessary. (8 Marks)
b) Assuming the buyer is capable of specifying explain six limitations/disadvantages of using specifications. (12 Marks)
Question Three (20 Marks)
a) Resource needs for capital goods are not limited to physical items only. Discuss which other resource needs are linked to the acquisition of capital equipment. (14 Marks)
b) Explain three key reasons why organizations are increasingly interested in ethical sourcing. (6 Marks)
Question Four (20 Marks)
a) Explain the causes of disparities between inventory records and actual inventories held in warehouses. (8 Marks)
b) You are tasked with selecting a site for the construction of a warehouse. What are some of the factors you think should be considered when making this decision? (12 Marks)
Question Five (20 Marks)
Discuss the points that should be considered when evaluating offers by potential suppliers. (20 Marks)
