Possible questions
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.
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 cross-functional 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.
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.
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 cross-functional 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.
