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PSM611S - Purchasing Management - 2nd OPP - JUN 2023 |
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nAm I BI A un IVE RS ITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOFCOMMERCEH, UMANSCIENCEAS ND 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)
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
Ms O.N Kangandjo
MODERATOR:
Mr M B Simasiku
THIS QUESTION PAPER MEMO CONSISTS OF 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 a.
1.1 From a strategic level, which of the following items is the most logical to outsource?
(2)
a. An item that is not critical to successof the organisation.
b. An item that is critical to the successof the organisation
C. An item that requires specialised design, manufacturing skills or equipment
d. An item that fits well within the firm's core competencies
e. None of the above
1.2 One of the following is not an objective of Purchasing and Supply Management.
(2)
a. To maintain and develop the quality of purchased products and services as well as internal
service delivery
b. To ensure gender sensitive purchasing of materials
C. To contribute to the development of overall business strategies
d. To ensure that a timely, cost-effective and comprehensive information system is in place
e. None of the above
1.3
a.
b.
C.
d.
e.
One of the advantages of decentralized structure for Purchasing and Supply function is.........(2)
Wider publicity for the organization
Greater opportunities for Head Office staff to visit the branches.
Greater autonomy for profit centres
Expansion of market share of the organization's products
None of the above
1.4 The role of Purchasing function in Corporate Governance is ...............
(2)
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)
1.5 The fixed cost per unit item produced remains ................
(2)
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
e. None of the above.
1.6 Which of the following tasks are required before the awarding of a contract or placement of an
order in the purchasing cycle?
(2)
a. Identification of needs and producing specifications if required
b. Expediting, reviewing progress and processes
c. Reviewing quotations, gaining authorisation and placing orders
d. Assessingsupplier performance and checking invoice details if required.
e. All of the above.
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1.7 These items int the ABC analysis need careful consideration
major part of the inventory investment:
a. A items
b. B items
c. C items
d. D items
e. E items
since they are responsible for the
(2)
1.8 Large inverntories will .............................the costs of stock shortage.
(2)
a. decrease
b. increase
C. equal
d. not affect
e. exceed
1.9 The following are the main key performance indicators of supplier evaluation:
(2)
a. Quality, cost, geographic location and speed.
b. Quality, cost, on-time delivery and environmental issues.
c. Cost, financial stability, flexibility and reliability.
d. Cost, on-time delivery, responsiveness and quality.
e. Quality, cost, on-time delivery and Black Economic Empowerment.
1.10 The last stage of the strategic sourcing process is:
(2)
a. Develop a strategy.
b. Manage supplier relations.
c. Conduct market research.
d. Negotiate the contract.
e. Build the team.
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Question 2 (True or False)
Indicate whether the following statements are True or False.
Which of the following statements are true or false?
2.1 In a transactional relationship buyer and seller do not get
closely involved with each other, but simply exchange goods
or services for payment.
2.2 Ur:icertainty arises from a person's imperfect state of
knowledge concerning future events.
2.3 Logistics management only involves the safety storage
materials.
2.4 E-commerce reduces the speed of transactions and
increases costs.
2.5 The purchasing and supply function of a firm operates
independently from the other enterprise functions.
2.6 Just In Time philosophy requires high levels of inventory to
secure an uninterrupted flow of materials.
2.7 It is possible for individual purchasers and suppliers to
influence market prices in perfectly competitive free
markets.
2.8 Prices can be determination by means of negotiation.
2.9 The first three stages of the negotiation process are
individually and separately performed by both the
purchasing organisation and the supplier.
2.10 The supplier selection decision is based on a uniform set of
weighted criteria that can be applied to every purchase.
[10 Marks]
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lsEcr10sNl
Question 3
[50 Marks]
3.1 Evaluation of performance is vital in order to ensure success. Outline the major steps in the
evaluation process of the purchasing and supply function.
{10)
3.2 Although negotiations can foster effective supplier relationships, not all circumstances require
negotiations. Name and explain five circumstances that require or warrant negotiations.(10)
3.3 A manufacturer of vehicle parts consists of four separate business units, the purchasing
activities are undertaken by the purchasing and supply function.
(a) Which type of a purchasing and supply organisational structure is employed by this
manufacturer?
(2)
(b)
Explain two advantages of the purchasing and supply organisational structure
identified in (a) above.
(2)
3.4 The execution a purchasing transaction requires the performance of various activities in a
logical sequence. Unavi aims to develop a standard purchasing process for his company.
Identify the seven steps of the purchasing cycle that Unavi should consider in developing such
a model.
(14)
3.5 Walter would like to convince the management of his company to implement an e-procurement
system. Indicate two benefits of such a system?
(2)
3.6 If you as the corporate purchasing and supply manager decided to start a small business
purchasing programme, what problems do you foresee for your company and for the small
supplier?
(10)
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Question 4
Study the advert below and answer the questions thereafter.
[20 Marks]
nAml BIA UnlVERSITY
OF science AnOTeCHnOLOGY
Office of the Bursar
Procurement Management
Unit
INVITATION FOR BIDS [IFB)
Open National Bid (ONB]
Pursuant with Section 29[a) of the Public Procurement Act, 15 [Act No 15 of 2015). the Namibia
University of Science and Technology [NUST) Invites registered and reputable 100% Namibian-
owned companies to submit their best bids for the Supply and Delivery of Laptops and Desktops
at the Namibia University of Science and Technology [NUST), Main Campus.
DESCRIPTION OF
THE BIO:
Supply and Delivery of Laptops and Desktops at the Namibia
~niverslty ofScienc":_ and Technology [NUST], Main Campus
PROCUREMENT
REFERENCE NO:
G/ONB/NUST-002/2023
BIO DOCUMENTS:
[Sealed envelope marked
as per instructions in the
bid document)
Bidding documents will be available during office hours, from
the NUST Main Campus, 13 Jackson Kaujeua Street, at the Cashier
Offices. Bid documents will be issued upon the payment of a
non-refundable tender levy of Three Hundred Namibian Dollars
INS 300.00) per tender document.
_D_A_T_E_O_F_I__S_S___U_E_: F_ri_da_y~,_27_J_a_n_u_a_r_y_~_2___0___2___3____
_
cLq)"!'l.~ ~'.'\\!_E_ANOTIME: Th_ursday, o_~March _2_0~.'.'t12h00
LEVY:
NS 300
CLARIFICATIONS
[Strictly by email):
All requests for clarifications should be addressed to bidbox@
nust.na and reach NUST before20 February 2023.
Late requests will NOT be responded to.
SUBMISSION OF BIOS:
BID OPENING:
[Strict COVID-19 safety
measures will be applied
as per University guide-
lines)
Bids must be enclosed in an envelope [clearly marked as indicated
in Instruction to Bidder) and delivered at the following address:
Namibia University of Science and Technology
13Jackson Kaujeua Street
Bid Box
Administration Building, First Floor, Windhoek West
Companies must register their bid submission in the registry book
availabl~ at ~e Foye!"_u.e.on bid delivery,
Bids will be opened in the presence of the bidders who choose
to attend at the Namibia University of Science and Technology,
13Jackson Kaujeua Street, Windhoek West, Elizabeth Haus on
Thursday, 09 March 2023, immediately after closing.
ELECTRONIC BIDDING WILL NOT BE PERMITTED. LATE BIDS WILL BE REJECTEDAND RETURNED
UNOPENED
Enquiries:
Procurement Management Unit
E: procurement@nust.na
T: +264 207 2020
www.nust.na
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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 laptop suppliers are very few, using Kraljic's product portfolio matrix, on which quadrant
would you advice NUST Purchasing and Supply Management Officers to plot these needed
laptops/desktops. Motivate your answer.
(5)
4.3 Based on your answer above, what strategies would you recommend and why?
(5)
END OF THE QUESTION PAPER
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