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Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA(TM) SEMESTER -10 EXAMINATION SUMMER 2017
Subject Code: 4210101 Date: 09/05/2017
Subject Name: Material Management
Time: 10.30 am to 01.30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1

Explain the importance and scope of the Material Management.
07

Explain the concept of MBO with its scope?
07
Q.2

Explain the followings
1. Economic Analysis
2. Market Analysis
3. Supplier Analysis
4. Transportation Analysis
5. Price Analysis
6. Purchase Analysis
07

Explain the Bill of Material with its advantages.
07
OR

Explain ABC analysis with its mechanism.
07
Q.3

Explain the process of codification with its advantages.
07

Explain the various goals of Purchasing.
07
OR
Q.3

Explain Pre purchase system with examples.
07

Write a short note on Standards. Also explain the advantages of standards.
07
Q.4

Explain the material research process in detail.
07

Explain the various purposes served by the material Budget.
07
OR
Q.4

Bombardier ltd three factories F1, F2, and F3 with production capacity 100 70, and 30 units per week respectively. These units are to be shipped to four warehouses W1, W2, W3, and W4 with requirement of 50, 90, 60, and 50 units per week respectively. The transportation costs (in Rs.) per unit between factories and warehouses are given below. Factory Warehouse Supply W1 W2 W3 W4 F1 1 2 1 4 100 F2 3 3 2 1 70 F3 4 2 5 9 30 Demand 50 90 20 40
Find the initial solution by MODI method.
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Q.5

Bajaj lamps have three factories F1, F2, and F3 with production capacity 10, 90, and 20 units per week respectively. These units are to be shipped to four warehouses W1, W2, W3, and W4 with requirement of 30, 40, 30, and 20 units per week respectively. The transportation costs (in Rs.) per unit between factories and warehouses are given below. Factory Warehouse Supply W1 W2 W3 W4 F1 1 2 1 4 10 F2 3 3 2 1 90 F3 4 2 5 9 20 Demand 30 40 30 20
Find the initial solution by
1. North west corner method
2. Least cost Method
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OR
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Q.5

'Here is a list of our suppliers said Marwha while pushing the sources register in front of Mr R.P. Singh, the newly-joined purchase executive. Mr. Marwha, the Purchase Officer, had been looking after the purchase for quite some time as the post of Purchase Manager had not been filled. The reasons for this were not known in the department. Singh went through the names and instructed marwha to call the suppliers one by one so that he could talk to them. He gave Marwha a week to arrange meetings 3 to 4 suppliers a day.
'some of these you can meet just now, said Marwha.
'Just
'yes sir, the owners/ proprietors partners of many firms are also our own employees. I have only to run round the shops and offices and get them here.'
'Very much, sir. Here are few examples: Our requirements of autoparts are being met by the supervisor working in our autoshop. A union leader owns a workshop and does the subcontract work for us. Stationery is being supplied by our head clerk. An accountant owns two- and four-wheelers which are regularly retained by the company to collect and deliver material from/to suppliers, plants an transporters' godowns. Gaskets and plastic caps are being supplied by an employee in the grinding section. A purchaser assistant has put up a plating shop in the name of his brother and inverbally, jobs are routed to him for surface treatment. Same way, a number of other examples can be given. Should I call some of them
R.P.Singh interrupted,
Sir! What happened?'
'Things seem to be in more mess than I imagined. Don't you know, Mr Marwha, that buying from employees is against the basic principles of scientific purchasing?'
'But this has been buying policy all along,' argued Marwha.
'Please give me the register here, Mr Marwha said Singh 'and I shall let you know what is to be done.'
Singh studied the register in detail and wrote a long confidential memo to the Managing Director.
Questions
1. Do you, like the purchase executive, subscribe to the view that employees should not be the suppliers of the company?
2. Draft a memo to the M.D. against the current policy.
3. How can the existing policy be reserved without causing bitterness?
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