MNP2601 - questions and answers

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