 |
IPS511S - INTRODUCTION TO PROCUREMENT AND SUPPLY CHAIN MANAGEMENT - 1ST OPP - JUNE 2025 |
|
|
1 Page 1 |
▲back to top |
nAmI BI AunIVERSITY
OF SCIEnCE Ano TECHn OLOGY
FACULTYOF MANAGEMENTSCIENCES
DEPARTMENTOF MARKETING,LOGISTICSA, ND SPORTS MANAGEMENT
QUALIFICATION: BACHELOR OF PROCUREMENT & SUPPLY CHAIN MANAGEMENT
QUALIFICATION CODE: 07BPSM
COURSE CODE: IPS511S
LEVEL: 5
COURSE NAME: INTRODUCTION TO PROCUREMENT
AND SUPPLY CHAIN MANAGEMENT
SESSION: JUNE 202S
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) MS. SELMA KAMBONDE (FT)
DR. HELVI PETRUS(FT)
MR. TANGI NEPOLO (PM)
MR. THOMAS MWAHENUKANGA (EN)
MR. MR. RUSTEN KATJANGUA (DI)
MODERATOR: MS. PAULINA SHINANA
1. Answer all questions.
2. Write clearly and neatly.
3. Number the answers.
INSTRUCTIONS
THIS EXAMINATION QUESTION PAPER CONSISTS OF 7 PAGES (Including this front page)
1
|
|
2 Page 2 |
▲back to top |
SECTIONA: MULTIPLE CHOICEAND TRUE OR FALSE
QUESTION1: MULTIPLE CHOICE
(50 MARKS)
There are 25 Multiple-choice questions with several possible choices each. Choose the
best possible answer, for example, la. Each question is equivalent to 2 marks.
1.1 A manufacturer in Windhoek transforms
packaging products that are then sold
transformation process is an example of:
a) Supply Chain
b) Supply chain management
c) Logistics management
d) Value Chain
raw polyethene materials into plastic
to retail and wholesale clients. This
(2 marks)
1.2 A Namibian logistics company collaborates with its suppliers and customers by sharing
real-time inventory data and coordinating delivery schedules. This practice is referred
~as:
(2~~)
a) Supply chain
b) Logistics management
c) Procurement management
d) Process Integration
1.3 A procurement officer working at the Ministry of Health wants to ensure that a tender
for medical equipment complies with national laws. Which of the following documents
should they consult for guidance?
(2 marks)
a) Public Procurement Act, No. 15 of 2015
b) Public Procurement Regulations: Public Procurement Act, No. 15 of 2015
c) Public Procurement Amendment Act, 2022
d) All the above
1.4 The Namibian Institute of Pathology is implementing sustainability measures in its
purchasing policies. They choose to follow an international standard focused on
sustainable procurement practices. Which standard are they likely using? (2 marks)
a) ISO24400
b) ISO90200
c) ISO91000
d) ISO20400
1.5 Namibian Breweries Limited (NBL), a beverage manufacturer, typically produces 10,000
units per production cycle to maintain consistent output levels. This regular production
quantity is known as:
(2 marks)
a) Safety stock
b) Deadstock
c) Speculative stock
2
|
|
3 Page 3 |
▲back to top |
d} Cycle inventories
1.6 A grocery store manages its inventory to ensure older dairy products are sold before
newer ones to avoid spoilage. This inventory method is referred to as:
{2 marks)
a) JIT
b) FIFO
c) EOQ
d) ABC Analysis
1.7 A new warehouse employee is being trained on their functions. Which of the following
would not typically be considered a warehouse function?
{2 marks)
a) Receiving goods
b) Sporting goods
c) Dispatching goods
d) All the above answers are correct
1.8 A warehouse supervisor observes that multiple pallets are stored outside the
designated racking area due to insufficient space. This is a violation of which principle
of warehouse efficiency?
{2 marks)
a) Efficiency principle 3
b) Efficiency principle 2
c) Efficiency principle 1
d) All the above
1.9 Which strategy would best improve supply chain visibility?
a) Ordering in bulk to avoid shortages
b) Hiring more warehouse staff
c) Implementing a real-time inventory tracking system
d) Reducing the number of suppliers
1.10 What is a key benefit of supply chain collaboration?
a) Reduced bullwhip effect and improved demand forecasting
b) Higher individual profit margins for suppliers
c) Elimination of all transportation costs
d) Complete elimination of inventory
(2 marks)
(2 marks)
1.11 How can a company improve supply chain resilience?
a) Diversifying suppliers and transportation modes
b) Relying on a single logistics provider
c) Avoiding technology investments
d) Keeping minimal safety stock
{2 marks)
3
|
|
4 Page 4 |
▲back to top |
1.12 What does time reduction help achieve?
a) Faster order fulfilment and lower stock levels
b) Higher inventory carrying costs
c) Increased supplier dependence
d) More manual paperwork
(2 marks)
1.13 How does consolidation shipping reduce costs?
a) Combining smaller shipments into full truckloads
b) Sending half-empty trucks
c) Avoiding bulk orders
d) Using only air freight
(2 marks)
1.14 A supply chain analyst reviews company activities that contribute directly to creating
customer value.
(2 marks)
a) Human resource management and procurement
b) Inbound logistics and outbound logistics
c) Technology development and infrastructure
d) Firm infrastructure and marketing
1.15 An importer of machinery experiences delays due to rising tariffs and international
tensions. What are the key components of a WMS?
(2 marks)
a) Basic storage racks and manual inventory logs
b) Automated picking and packing of inventory
c) Manual Storage and dispatching of goods
d) Outbound Supply Chain
1.16 What does agility in supply chain management refer to?
(2 marks)
a) The ability to move goods quickly from one location to another
b) The flexibility and responsiveness of supply chains to market changes and disruptions
c) The use of advanced technology in supply chain operations
d) The reduction of inventory levels to minimise storage costs
1.17 A supplier found guilty of fraud can no longer participate in public tenders. What
does this represent?
(2 marks)
a) The process of selecting suppliers for a specific project
b) The exclusion of a supplier from participating in future government contracts
c) The negotiation of terms and conditions in a contract
d) The evaluation of supplier performance in ongoing projects
1.18 A logisticscompany faces increased lead times due to international regulations and
diverse supplier locations. What challenge is common in globalised markets? (2 marks)
a) Reduced competition
4
|
|
5 Page 5 |
▲back to top |
b) Increased supply chain complexity, risks, and uncertainties
c) limited access to international markets
d) Lower customer demand variability
1.19 A supplier shares real-time inventory and delivery scheduleswith manufacturers to
avoid stockouts.Which supply chain flow supportsinventory optimisation and delivery
scheduling?
(2 marks)
a) Reduced competition
b) Financial flow
c) Material flow
d) Information flow
1.20 How does strategic sourcingdiffer from tactical sourcing?
(2 marks}
a) Strategic sourcing involves negotiating the lowest price, while tactical sourcing
prioritises quality.
b) Strategic sourcing focuses on long-term supplier relationships, while tactical sourcing
emphasises short-term cost savings.
c) Strategic sourcing excludes supplier collaboration, while tactical sourcing promotes
collaboration.
d) Strategic sourcing does not consider supplier performance, while tactical sourcing
does.
1.21 A manufacturing company contracts an external IT firm to manage its helpdesk
services.What does this arrangement represent?
(2 marks)
a) internal management of inventory and production processes
b) Outsourcing processes to vendors or service providers
c) The process of procuring goods and services from external suppliers
d) Buy or make decisions
1.22 Namibia Statistics Agency, a public entity, is updating its procurement procedures.
It considers macroeconomic factors like inflation, trade policies, and emerging
technology. Which external influences could affect its procurement decisions?
(2 marks)
a) Economic growth
b) Political stability
c) Technological advancement
d) All the above
1.23 The Office of the Prime Minister wishes to switch to a digital procurement system.
What is a key benefit of this e-procurement method?
(2 marks)
a) limited access to a broader range of suppliers
b) Increased transparency and efficiency in procurement processes
c) Higher costs due to technological requirements
d) Decreased competition among suppliers
1.24 A company begins assessingits suppliers' social and environmental impacts when
making purchasingdecisions.What procurement strategy are they applying? (2 marks)
5
|
|
6 Page 6 |
▲back to top |
a) Supply Chain Due Diligence
b) Sustainable Procurement
c) Sole Sourcing
d) Competitive Bidding
1.25 Onayena Investment CC uses ABC analysis to manage its inventory. Which category
includes high-value items with low frequency of use?
(2 marks)
a) Category A
b) Category B
c) Category C
d) Category D
QUESTION 2: TRUE AND FALSE
(10 MARKS)
Read each of the following statements carefully. Indicate whether the statement is True or
False by writing ONLY the correct answer. Each correct answer is worth one mark.
2.1 JIT inventory systems eliminate the need for safety stock.
2.2 Vendor-managed inventory (VMI) shifts inventory management responsibility to the
supplier.
2.3 Logistics is the same as supply chain management.
2.4 Supply chain disruptions can be eliminated with proper planning.
2.5 A push-based supply chain relies on real-time customer demand.
2.6 Lead time is the total time from order placement to delivery.
2.7 Reverse logistics deals only with product returns.
2.8 The postponement strategy delays product customisation until customer orders are
received.
2.9 A supply chain's carbon footprint is irrelevant to customer decisions.
2.10 3PL providers handle only transportation.
SECTION A: 60 TOTAL MARK
SECTION B: STRUCTURED
6
(40 MARKS}
|
|
7 Page 7 |
▲back to top |
QUESTION 3
ARKTrading Namibia is a leading building material supplier, offering lighting, plumbing, tiles,
cement, paint, hardware, timber, and household goods. The store has been running low on
paint recently due to increased demand from contractors and walk-in customers.
Based on the scenario above, briefly discuss the key steps in ARK Trading's procurement
process for the paint?
(20 Marks)
QUESTION4
(20 MARKS)
JJ Investment is choosing between two order plans for one of its inventory items. The
company expects to need about 84 units per month. In Plan 1, they will use a teletype to place
orders. The cost to place each order is N$40, which costs N$100 per unit per year to store the
items. In Plan 2, the order cost is N$30 per order, but the storage cost is 20% of the unit price,
and each unit costs N$480.
a) Find the EOQ of both plans?
b) Find the Total Inventory Cost (TC)of inventory for each plan?
c) Justify your answer?
(9 marks)
(6 marks)
(2 Marks)
SECTION B: 50 TOTAL MARKS
TOTAL: 100 MARKS
7