Supply Management 2013 July Knec Past Paper

1. The Managing Director of a large parastatal has asked the supplies manager to prepare materials plan for the next financial year.
Explain five factors that would be considered in preparing such a plan.
Explain the role of in-bound logistics in supply chain.
2. (a) An item stocked by a manufacturing firm has a lead time of 4 weeks. Its average weekly usage is 40 units. A buffer stock of 20 units is maintained.
(i) Explain the re-order level system of inventory control.
(ii) Calculate the re-order level for the item. (8 marks)
(b) Explain six essential attributes of an effective storage system. (12 marks)
3. (a) Explain five factors which a supplies manager would consider in forecasting demand for stock items. (10 marks)
(b) Explain five factors which a stores manager would consider in devising an appropriate stores layout system. (10 marks)
4. (a) Explain five consequences of an inefficient materials handling system in supplies department. (10 marks)
(b) Explain five functions that arc performed by packages. (10 marks)
5. (a) Highlight five advantages of an automated materials handling system. (10 marks)
(b) Explain five special considerations involved in packaging products for sale in international markets. (10 marks)
6. (a) Explain the steps that a distribution manager would follow in the preparation of a strategic plan for a distribution department. (10 marks)
(b) Explain the role of transportation in the Kenyan economy. (10 marks)
7. (a) Highlight five factors which a distribution manager would consider in the selection of a distribution channel policy. (10 marks)
(b) Explain five advantages of contracting out transportation services.

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