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<=KNEC Diploma in Supply Chain Management Module 1: Supply Chain Management and Purchasing Principles Past Paper July 2017

Kibi Company Limited has decided to adopt inter-modal system in its operations. Highlight five reasons for making such a decision.

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Questions List:

1. The use of procuring agents is one of the approaches that an organization may adopt in its supply chain function. Highlight five advantages of using such an approach.
2. Outline five types of costs that are associated with quality of goods bought –out supplies
3. The supplies officers of XYZ Company Limited has received a price quotation from one of its suppliers. Outline five elements that will constitute such a constitution.
4. Highlight five ways in which intra-company trading sourcing method is applied.
5. ABC company Limited uses travelling requisitions in its procurement operations. Explain five reasons for using such a document.
6. Explain the importance of having a proper layout of an organization’s receiving bay.
7. Explain five problems that an organization may face when processing suppliers payment claims.
8. Kibi Company Limited has decided to adopt inter-modal system in its operations. Highlight five reasons for making such a decision.
9. Explain five factors which may enhance the relationship between purchasing and marketing functions in an organization.
10. Techno Company Limited has acquired the ISO 9000-2008 certification on quality management system. Highlight five advantages of acquiring the certification.
11. Mr. Juma, a purchasing officer of Koa Company Limited, has received request from one of the supplier to make adjustments on prices agreed upon in an existing contract. Explain five measures that Mr. Juma should consider when making the price adjustments.
12. Kiki Company Limited has decided to use the single sourcing method in its acquisition of material. Highlight five reasons that may have influenced the company to make such decision.
13. Ombo Company Limited uses third party certification organization to inspect its materials. Explain five benefits that may be derived from adopting this approach.
14. Explain five challenges that an organization may face from using advance payment method in managing purchasing contracts.