INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 5
Purchasing Management
Date 09.12.2017 Max. Marks :100
Time 10.00 a.m. to 1.00 pm Duration 3 Hrs.
Instructions
1. From Part A answer all questions compulsory). Each sub questions carries 1 mark. Total 32 Marks
2. From Part B Answer any 3 questions out of 6 questions. Each question carries 16 marks. Total 48 Marks
3. Part C is a case study (compulsory) with questions. Read the case study carefully and answer the questions
4 questions of 5 marks each) Total: 20 Marks
4. Please read the instructions given in the answer sheet
PART A Total 32 marks
(compulsory- each question carry one mark)
Q.1 Please state whether the following statements are "True" or "False". Please do not
rewrite the statements while answering in answer book . [Total 12 Marks]
Vendor list updating is not important in purchasing.
Purchase manager should not have thorough knowledge of Customs, taxes excise duty.
Communication skill is not required in purchasing.
Open tender is advertised in news papers.
Bulk liquid chemicals are transported in open truck.
Quality and energy efficiency of equipment is important in purchasing.
"Force Majeure" forms part of Purchase Contract.
Purchasing is just clerical function.
Transit Insurance is part of purchase order.
10) Negotiation skills are required while purchasing.
11) Strategic planning is influenced by legislation and government regulations.
12) Green Purchasing deals with procurement of green colored items.
Q.2 Match the following: [Total 8 Marks]
Column A Column B
BPR
ERP
CENVAT
Quality
TQM
AWB
SAP,ORACLE,BANN
JIT
Dispatch by Air
B/L
Shipment by sea route
Transit Damages
Insurance Claim
Excise Duty
Inventory Control
Fundamental thinking for
improvement
Dec 2017
Q. 3 Fill in the blanks [Total 4 Marks]
a. Cross functional team is a group of from various functional areas
b. In learning curve, should decline with each succeeding unit produced.
c. Material handling is the moving unloading of the materials
d. Delegation of is always good for effective working of Purchase department in any
company.
Q.4 Write the full form of the following. Mark each) [Total 8 Marks]
CIF; SRM;
SCM JIT; ERP; BPR
PART B [Total 48 marks]
Write any THREE out of the following five questions i.e, Q.5 to Q.10: (16 Marks each]
Q.5 Discuss various terms conditions of a purchase order. List out various payment terms used
in import procurement.
Q.6 Elaborate the evaluation and selection procedure of vendors. What is the significance of
vendor's location?
Q.7 Discuss the purchase procedures of government departments.
Q.8 What are the main elements of ethics code? What should be the qualities of ethical purchaser?
Q.9 Define negotiation? What are negotiation strategies?
Q.10 Explain the purchase procedure. What are the steps in purchasing?
PART C [Total 20 Marks]
Q.11 CASE STUDY- Compulsory
.
Vora Industries limited a 300 cr. Company at Madras by Mr. Sujit Vora a manufacturer of different automobile Components.
This firm is been operated in a highly competitive environment .The effective efficient review by management takes place very regularly. They have after sales product support divisions . Also they provide spare parts to the customers through their dealers.
This firm is having complete computerization. They also have ERP system.
Company mostly focused on the satisfaction expectation of the present potential customers to know more about customers some initiatives has taken like
Understanding customer requirements.
Determination of key products benefits to the customers.
Identifying and assessing competition in the market.
Establishment implementation of various documented procedure.
Assessment of customer needs satisfaction.
Now Mr. Sharma has been assigned the responsibility of increasing the production by 45%
Along with his new team.
Explain following questions-
Comment on quality policy of this company Is satisfactory or not to achieve competence in customer delightment.
What will be the benefits of ERP system to this firm for automation?
To increase the production by 45% what need to be done by Mr. Sharma.
What are the strategies you would suggest to strengthen the supply chain?