MNP2601 Purchasing Management
University of South Africa
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mnp2601-condensed-notes. Complete And Verified.
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---40november 20212021/2022
- Unit 1 – Purchasing Function in perspective 
Distinguish between purchasing and supply management concepts 
Purchasing Management (P,N,E,F) 
 Process of buying, locating & selecting a supplier 
 Negotiating price, quality, quantity 
 Ensuring delivery 
 Functional approach 
Supply Management (M,S,R) 
 Management of resources the organisation needs to attain objectives 
 Strategic focus and systems approach 
 Regards suppliers as extensions of the firm 
Discuss objectives o...
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MNP2601 exam questions solutions.
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--143november 20212021/2022A+
- CHAPTER 2 
Oct/Nov 2014 Question 2 
2.1 In a table, shortly explain why a supply manager would consider a decentralised 
purchasing and supply organisational structure by referring to the following. Chapter 
2 
(a) Any 5 advantages of a decentralized P&S Organisational structure (5 
marks) 
(b) Any 5 disadvantages of a decentralized P&S Organisational structure 
(5 marks 
Type of 
structure 
Advantages Disadvantages 
Centralised 
 Materials & products are 
standardised. 
 Negotiating power...
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mnp2601-summary-notes.
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4.0(1)4.05177november 20212021/2022A+
- CHAPTER 1 
INTRODUCTION TO PURCHASING AND SUPPLY CHAIN MANAGEMENT 
 Understand the differences between purchasing and supply management 
 Understand the differences between supply chains and value chains 
 Identify the activities that are part of supply chain management 
 Appreciate the importance of supply chain enablers 
 Identify the historical stages of purchasing’s evolution 
Re-shoring involves bringing some sourcing back to the United States, while near-shoring involves 
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