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PMM711S - PROCUREMENT MANAGEMENT - 2ND OPP - JULY 2022 |
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nAmlBIA UnlVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTYOF COMMERCE, HUMAN SCIENCEAND EDUCATION
DEPARTMENT OF MARKETING AND LOGISTICS
QUALIFICATION: BACHELOROF LOGISTICSAND SUPPLYCHAIN MANAGEMENT
QUALIFICATION CODE: 07BLSC
COURSECODE: PMM711S
LEVEL: 7
COURSENAME: PROCUREMENTMANAGEMENT
SESSION:JULY 2022
DURATION: 3 HOURS
PAPER:THEORY
MARKS: 100
SECONDOPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) Ms. Emilia Salomo
Mr. Tangi Nepolo
(FT& DI)
(PT)
MODERATOR: Ms Susanna Dolly Nghipandwa
INSTRUCTIONS
1. This paper consists of 2 Sections, A and B
2. Answer ALL 4 questions in all sections
3. Read each question carefully
4. Write as legible and precise as possible
5. Indicate your class lecturer's name on your answer sheet
THIS EXAMINATION QUESTION PAPERCONSISTSOF~ PAGES(Including this front page)
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SECTION A
(30 MARKS]
QUESTION 1: TRUE & FALSE
(20 MARKS]
1. State whether each statement below is true or false. PLEASESPELLYOUR ANSWERS OUT
AND DO NOT WRITE "T" OR "F". Each question is worth TWO marks.
1.1. Collaborative relationships are typically used for the procurement of commodity
items
1.2. The larger the company's supplier base, the less the risks
1.3. A transactional relationship is an appropriate first step to a strategic alliance.
1.4. The fundamental difference between collaborative relationships and supplier
alliances is the presence of cost measurement and information technology in
alliances
1.5. Firms are becoming more aware of the strategic dimension of the make or buy
decision
1.6. The smaller the organisation, the less likely the purchasing operations will be strategic
1.7. Managing supplier relationships is a strategic responsibility
1.8. A Company should spend more effort and resource on high spending categorised
procurement
1.9. When evaluating a supplier, a good supplier scoring and assessment process will
primarily track performance along the price dimension.
1.10.
A reliable supplier has low variability of lead time, whereas an unreliable
supplier has high variability
QUESTION 2:
(10 MARKS]
2. Indicate whether the below scenarios are practising purchasing or procurement? Each
question is worth TWO marks.
2.1. A company chooses a supplier based on the reasoning that they come a long way
together.
2.2. A procurement department defines its success by its ability to buy the right goods at
the right time and price.
2.3. The company that focuses its procurement on strategic benefits and/or reasoning.
2.4. Buying that is highly focused on the lowest cost per unit.
2.5. A company uses its supplier performance reviews to build suppliers and maintain
stronger relationships.
SECTION A SUBTOTAL: 30 MARKS
2
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SECTION B: STRUCTURED QUESTIONS
[70 MARKS]
QUESTION 2
[20 MARKS]
A NAMIBIAN company has partnered with an Angolan company that runs a textile plant
Ohangwena Cotton Production is a Namibian company based in the northern regions and has
been in operation since 2017. The company will be boosted by an investment worth N$238
million from Alassola SA, a textile plant in Angola. The two companies signed the cooperation
contract yesterday in Windhoek. Ohangwena Cotton Production will be supplying Alassola SA
with 9 000 tonnes per annum. The Namibian company called on the government to provide
them
with
the
land
for
cotton
farming.
Ohangwena Cotton Production founding director Dasius Nelumbu said the contract would
enable them to earn a minimum of N$1,2 billion in revenue per annum. However, until they
have sufficient farmland, they would not be able to sign more contracts with other entities.
Although they are starting small, Nelumbu believes the new projects will provide about 1 650
people with permanent jobs. "The agreement signifies what we may term the birth of a new
industry in Namibia, as the idea from field to fashion is a concept which contributes towards
value-addition," he added. According to Nelumbu, Alassola SA will offer N$238 million to
Ohangwena Cotton Production, and in return, they will supply clean cotton. He said that
Alassola SA would also provide technical support in cotton farming and ginning.
"Their processing factory, which makes fabric, is open to us for visitation in our quest to
increase our knowledge in the cotton value chain," Nelumbu said. The chief executive officer
of Alassola SA, Tambwe Mukaz, said that as a textile company, they process cotton that they
transform into finished products. "We find this project exciting by its size and the fact that it
will be produced in the Ohangwena region, which is very close to Angola," Mukaz noted. He
added that they would be facilitating transportation, as cotton is a primary product needed
in their industry. "We chose Ohangwena Cotton Production because we want cotton of high
quality, and our industry uses high technology," Mukaz said.
Source: The Namibian {2019}
Readthe Namibian newspaper article above and criticise the procurement strategy used?
QUESTION 3
[25 MARKS]
The Public Procurement Policy Unit is in talks to develop an e-procurement system. Discuss
any ten reasons why outsourcing might be a solution?
QUESTION 4
[25 MARKS]
Categorise Namibia Brewery Limited's {NBL} strategic sourcing matrix based on risk,
complexity and amount spent, and create a sourcing strategy for NBL, giving a practical
example of sourced material/products for each portfolio?
SECTION B SUBTOTAL: 70 MARKS
GRAND TOTAL: 100 MARKS
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