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PSM611S - Purchasing Management - 1st OPP - JUN 2023 |
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n Am I BI A u n IVE Rs ITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF COMMERCEH, UMANSCIENCESAND EDUCATION
DEPARTMENTOFGOVERNANCEAND MANAGEMENTSCIENCES
QUALIFICATION: BACHELOR OF MANAGEMENT
QUALIFICATION CODE: 07BBMA
LEVEL: 7
COURSE CODE: PSM611S
COURSE NAME: PURCHASINGMANAGEMENT
SESSION: JUNE 2023
DURATION: 3 HOURS
PAPER: 1
MARKS: 100
EXAMINER(S)
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
Ms O.N Kangandjo
MODERATOR:
Mr M B Simasiku
THIS QUESTION PAPERMEMO CONSISTSOF 6 PAGES(Including this front page)
INSTRUCTIONS
1.
Answer all questions.
2.
Read all the questions carefully before answering.
3.
Marks for each question are indicated at the end of each question.
4.
Please ensure that your writing is legible, neat and presentable and start each Section on a
new page.
PERMISSIBLEMATERIALS
1. Examination question paper
2. Examination answer sheet
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~ECTION
Question 1
[20 Marks]
Select the correct answer by indicating the correct letter next to the corresponding question number
in the answer book provided. For example, 1.1 d.
1.1 The final step in the typical purchasing cycle for materials is ........................
(2)
a. Audit the invoice
b. Ordering and contracting.
c. Origin of the need
d. Measuring Supplier Performance
e. None of the above
1.2 The five "right objectives" of purchasing are.............
(2)
a. Cost, Service, Specifications, Time, Quantity
b. Place, Time, Price, Ethics, Contract
c. Agent, Supplier, Contract, Price, Quantity
d. Quality, Quantity, Price, Time, Place
e. Logistics, Time, Quality, Price, Quantity.
1.3 The term supply management is broader than the purchasing function because it............. (2)
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.
1.4 Strategic sourcing differs from tactical. purchasing in that this activity periodically:
(2)
a. Analyses the organization's spend
b. Analyses the supply market
c. Develops sourcing strategy and plans
d. Outsources basic business services such as security
e. a), b) and c)
1.5 Which of the following is not one of the three types of buyer supplier relationships discussed in
this course?
(2)
a. transactional
b. transcendental
c. Collaborative
d. Alliance
e. None of the above
1.6 A SWOTanalysis 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?
(2)
a. Opportunities
b. Weaknesses
c. Strains
d. Threats
e. Strengths
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1.7 The need for materials is communicated to the purchasing function through the use of one of the
following........................................
(2)
a. Phone Calls
b. Emails
c. Purchasing Requisition
d. All of the above
e. None of the
1.8 Which of the following is NOT used for evaluation of supplier?
(2)
a. Quality
b. Cost
c. Delivery,
d. Number of Employees
e. None of the above.
1.9 Collaborative negotiations will show the following sentiments when negotiating:
(2)
a. "Let me be transparent in terms of what my strategy is with our potential partnership."
b. "If you do not accept my terms, you need to realise that in future we will not be able to do
business again."
c. "No matter what happens with your business, my business has to survive."
d. "I have learnt from expensive mistakes; therefore, you have to understand that I cannot trust
anyone in business."
e. "The best outcome is the one that places more responsibility on my opponent.
1.10 Which of the following statements is incorrect?
(2)
a. E-commerce transactions are always conducted face to face.
b. E-commerce includes communications.
c. E-commerce is an important change agent.
d. E-commerce enhances transactional processes in supply.
e. E-commerce increases the speed of transactions.
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Question 1 {True or False)
Indicate whether the following statements are True or False.
Which of the following statements are true or false?
2.1 Speculative risks offer a chance of a gain or a loss.
2.2 Reverse discrimination is an objection against affirmative
purchasing.
2.3 The outcome of competitive negotiation is win-loose.
2.4 E-procurement increase buyer's productivity.
2.5 The outcome of constructive negotiation is win win.
2.6 Purchasers can employ the same strategies on suppliers to
save costs.
2.7 A good negotiator talks more and listen less.
2.8 Under centralised purchasing, there is one purchasing
manager who has the right to purchase materials for all
departments and divisions.
2.9 Supply chain management continue to become increasingly
cost oriented.
2.10
E-commerce represents a short term and revocable
environmental change in which the supply function has to
perform.
[10 Marks]
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lsECTIOsNl
Question 3
3.1 Discuss at least five roles of Purchasing and Supply Management in Corporate Governance
(10)
3.2 Any competent buyer needs to be aware and be able to manage risk. Identify the
strategies a buyer would employ to deal with or eliminate purchasing and supply risk.
(5)
3.3 Outline and explain the different types of buyer-supplier relationships.
(6)
3.4 Maintaining and developing effective relationships with suppliers is critical, hence the purpose
of negotiation is to move from a point where parties have conflicting interests to a point where
a mutual agreement is reached. You are required to outline the phases/stages of the
negotiation process.
(10)
3.5 Most companies are implementing e-procurement solutions. Identify the most important
categories of e-procurement.
(3)
3.6 Effectively, strategic sourcing formalises the way information is gathered in supply chain
management. By means of a diagram, illustrate the Strategic sourcing process.
(10)
3.7 Why would one advice a company to follow a centralised purchasing and supply organisational
structure. Explain three reasons
(6)
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Question 4
[20 Marks]
Read the case below and answer the questions thereafter.
SWAKOPMUND MUNICIPALITY CONFISCATES70 BAGS OF ROTTEN MANGOS FROM ZAMBIA
The municipality of Swakopmund, through their health inspector, confiscated 70 bags containing 50
kilograms of rotten mangos after a truck was pulled over by police officers at the roadblock.
The rotten bags of mangos were transported from Zambia to Walvis Bay.
nbc News spoke to the Swakopmund municipality's health services and solid waste management
manager, Abel Kationdorozu, who confirmed that the mangos are unfit for human consumption.
Kationdorozu says eating spoiled or toxic food can lead to food poisoning, which will lead to nausea,
vomiting, and diarrhoea.
The mangos were fresh when they were loaded on the truck in Zambia, but because of the long
journey, they became rotten as they had to endure all sorts of weather conditions on an open truck
without any cooler.
The mangoes were to be sold on the street market for 10, 5, or 3 dollars.
Source:
https://www.facebook.com/100064558605310/posts/pfbidOrYNqkbiyS4pkbVScJBGEuhFK11gEtLCLnus3ik7WZrZAWvqv8ohM3sdDoud3h78
al/?sfnsn=mo&mibextid=6aamW6
4.1 Kraljic's product classification matrix is a powerful tool designed with the purpose of helping
purchasers to maximize supply security and reduce costs by making the most of their
purchasing power. You are required to draw this product matrix.
(10)
4.2 Assume these mangoes were going to be delivered to Laizer (Pty) Ltd, a firm that produces
100% fruits juice. Further assume that mango producers are very limited. On which quadrant
of Kraljic's product classification matrix would Laizer (Pty) Ltd plot the mangoes? Motivate
your answer
(4)
4.3 Based on the assumptions made above (question 4.1), identify at least three parties in the
supply chain of these mangoes that are affected by the confiscation of the rotten mangoes.
(6)
END OF THEMEMO
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