MNP2601 - questions and answers. 100% CORRECT ANS.

Chapter 1 1. Discuss the objectives of purchasing management – p8 1. Too supply organizations with a flow of materials and services to meet needs. 2. To maintain and develop the quality of purchased goods. 3. Maintain an optimum balance of inventory 4. Ensure continuity maintaining effective relationships with existing sources 5. Too buy efficiently, best value for every rand spent. 2. Discuss the objectives of supply management – p8 ⦁ Contribute to the development of overall business strategies ⦁ Manage supply base ⦁ To ensure that a timely, cost effective and comprehensive info system is in place. ⦁ Contribute to multi functional teams and provide outstanding customer services 3. Discuss the elements of the purchasing procedure – p 15 – p23 i. Origin of the need ii. Specification identifying the source iii. Selecting suppliers iv. Negotiating and bidding v. Ordering and contracting vi. Follow up and expediting vii. Receiving inspecting and distributing viii.Handling faulty consignments and rejections ix. Analyzing the invoice x. Closing order xi. Measuring supplier performance. Chapter 2 1. Discuss the levels of purchasing and supply planning and objectives –p27 29 ⦁ Strategic purchasing and supply Planning. This is organizational planning at the highest level. Top Management, mission and long term objectives. ⦁ Tactical purchasing and supply planning. Executed at middle management, entails the implementation of strategic plans. ⦁ Operational purchasing and supply planning. This planning is at the lowest level, materials requirements planning, planning the purchasing and supply system. 2. What is the advantages of a centralized structure –p33 ⦁ Standardization of materials and products is possible because purchases are made at one point. ⦁ Increased negotiating power. ⦁ Purchasing and supply staff are afforded the opportunity to become experts. This study source was downloaded by from CourseH on :15:01 GMT -06:00 ⦁ Control over all the aspects of the purchasing and supply function is improved. ⦁ Admin costs are reduced 3. What is the advantages of a decentralized structure –p 33 34 ⦁ The needs of users can be better satisfied. ⦁ Make more efficient use of local suppliers ⦁ Different plants maintain there autonomy plant managers are often fully responsible for the profitability of individual plants. 4. Discuss the advantages of crossfunctional purchasing teams p37 ⦁ Different perspectives and expertise of team members. ⦁ Increased innovation because of informal organizational structures. ⦁ Teams accepting responsibility for problem correction ⦁ Enhanced communication between functions. 5. Name the steps that you will following the process of evaluating the purchasing and supply function –p41 – 49 1) Determine the objectives and scope of purchasing and supply. 2) Establish performance measures and purchase and supply norms for evaluation. 3) Measurement of actual performance 4) Evaluation of actual performance. 5) Reporting(feedback) Chapter 3 1. Name the core principles of supply chain management –p 58 ⦁ Value and the creation of customer value. ⦁ Total cost of ownership ⦁ Integration of processors. ⦁ Reduction of cycle time. 2. Discuss the characteristics of supply chain according to Leenders and Hugo –p59 ⦁ Supply chain management is a philosophy for conducting business. ⦁ Supply chains consist of multiple layers of companies striving as a team to optimize the shared supply chain processes. ⦁ Organizations may be involved in multiple supply chains ⦁ Focus remains on customer value creation ⦁ All links and interfaces in the supply chain are not of equal importance ⦁ Data interchange and data capturing occur across all interfaces of the supply chain. 3. How would you implement a supply chain –p61 ⦁ Supply chain strategy is a sub strategy of overall business strategy, it should therefore be developed to support overall corporate strategies. ⦁ Identify supply chain goals and develop plans to ensure that every process is individually capable of meeting them. ⦁ Develop a system for gathering market intelligence. ⦁ Integrate and manage the supplier base by creating long term contracts. ⦁ Develop a performance measurement system. 4. What is benchmarking? –p63 ⦁ Benchmarking is a process that allows a company to evaluate its work methods,