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MAKERERE Ul"1"1VERSITY BUSI~"ESS SCHOOL
COlJRSE WORK TEST ONE FOR THE BACHELOR OF COMMERCE A~1) THE
BACHELOR OF BUSTh"ESS ADMINISTRATION OF MAKERERE CNIVERSITY
. ACADEMIC Y~AR 2018/19 . . ,
SEMESTER:
TWO
TWO
YEAR: PRINCIPLES OF PURCHASING AND SUPPLIES
COURSE:
MANAGEMENT
. COURSE CODE: PSM2204
23rd FEB, 2018
DATE;
11:00AM - 12:00 PM
......................
TIME: ····· ......................................................................................... .
INSTRUCTIONS .
• There are two sections, A and B
• Section A, CIRCLE the most correct answer
• Section B, indicate whether TRUE or FALSE
• A TEMPLATE has been provided to put your answers
·.················· ............................................................................................................................ ,............ .
SECTION A
1. The five rights of purchasing are more pronounced in;
A. Performance Centered Purchasing
B. Process Centered Purchasing
C 1 Relational Centered Purchasing.
D. Product Centered Purchasing
E. Price Centered Purchasing
3. BATNA refers to ·
A. Basic Alternative To Negotiated Agreement
B. Best Alternative To Negotiated Agreement
C. Better Agreement Negotiated Act To
D. Big Alternative To Negotiated Agreement
2
D, Establishes the issues, gives structure, defines the order in which the issues are
discussed, introduces process issues·, sets time limits \ \
6. The document that informs the buyer that goods have been dispatched is called.
A. Quotation
B. Delivery note \
C. Goods collection note
D. Advice note
E. Order acknowledgement note
7. The tactic of consistently demanding for a better offer from the other negotiator is called
A. Building block technique
B. Broken record
C. Re" escalation of demand
D. Onus transfer
8• Purchasing has been defu{ed as the buying of the five right rights and these are;
A. Quality, Goods, Price, Time and Place
B. Quality, Quantity, Contract, Time and Place
C. Quality, Quantity, Price, Source and Place
D. Quality, Quantity, Price, Time and Place
11. The following ar.e items needed on a day to day basis while running a business.
A. Maintenance Repair And Operation Materials
B. Supplementary Materials
C. Raw Materials
D. Components And Sub-Ass~mblies
Which
A. of the following purchasing rights is usually compromised for low prices?
Time
B. Quantity
C. Quality
D. Source
E. Delivery place
28
_Proce._ssing of irrco.nung
· invoices
· · 1s · done at •· · · · · · ... · "· ··· stage
A. Ordering
B. Monitoring
· C. Contracting
D. Selection
· E. Semcmg
I • • •
29. Maintaimng
. Pureh asmg• infrastructure is ;
· A. A tactical task
B. A strategic task
C. An operational task
0 . All the above
Answer \ ..
No. Questions ,.
~
. "
EM¥ijI·Ci\MYEAR-E
tt UNIVERSITY
· ·
PRINCIPLES OF PURCHASING AND LY MANAGEMENT k
wg n .JK
D.,. . . 2017-2018
~t'f!JDY (BCOM & BBA) / (""
.[ SUNDAY 4TH MARCH 2018 J f1 6-1, (
,A;.~: . \'I · . 11;00 AM - 12:00 Noon DURATION:· HOUR
J:NS1i\UCTIONS
. ...
.
• c_ ~empt all Questions .
':; f-~- frl:l Answers should be written in the ANSWER TABLE Provided below
,.:· . .Oi?h' the page containing the answer table shall be handed in for marking
\ answer shall be written once without crossing to be considered as the correct
·:-•··answer
. .
.• 1. · Aprogr~e of requirement is a deliv3rable of;
a) Ordering · · .
b) Contracting
c) Specification
d) Selection
Page 1 of 7
2 0.In which purchasing model is the purchase ofhomogeneityit~m-~ercised? -· . '- · _.
a) Centralized , , " ' • · . · , ·, · ·
b) Decentralized
c) Coordinated
d) None of the above
. : .
. all expenses.
a) Aggressive strategy
b) Accommodative strategy
c) Collaborative strategy ·
d) Integrative strategy
Page 4 of 7 l
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'27: ..................was a stage in th · . ·
..; _ righ~ of purchasing. e purchasmg evolution that only focused on the five
~a)...-~Relational stage
. .-. P~ Batch purchasing stage
_- •. :_e) Performance stage·
_ : • .d) Product stage
. - • 2 8, In situations of scarcity d . . . .
·.. ·:. \to, practice,. an uncertamtym the market,.orgamzations are advising
, . . a) Emergency purchasing
·. _?) Reactive purchasing
·. · _c}. RouID1:e purchasing
.. -1) Proactive purchasing
31. Which one of the following· with the evolution of purchasing focused on the
. acquisition of the 5rights? ·
a) Product centered purchasing
b) Relational centered purchasing
c) Process centered purchasing
d) Performance cent~red purchasing
32.At which stage of negotiations are parties involved in differentiating facts from
assumptions?
a). Specification negotiation stage
b) Post negotiation stage
c) Market negc+iation stage
d) Pre-negotiation
33, The acquisition of goods and services, "purchasing" can only be effected through;
a) Leasing
b) Outright purchase
·cJ Hite purchase
d) All of these
Page S of 7
(' . .
34· ............................ is where items bough\ can be traced \n the final product of an
organization
a) ·Private procurement
b} Secondary purchases ·
c) Direct purchases
d) Lubricating oil purchases
35. Whicb. of the following purchasing document notifies the buying organization that
goods have been dispatched?
a) Requests for Quotations
b) Goods received note
c} Purchase order
d) Advice note
SECTION B (10 Marks) ·
••
36 Total quality management and supplier development axe best examples .
Pzige 6 of7
-~!0 ;, _- -~~\ .
. .; MAKERERE UNIVERSITY BUSINESS SCHOOL
.. COURSE WORK TEST ONE FOR THE DEGREE OF
.. . . . l3ACHELOR OF BUSINESS ADMINISTRATION (PPSM "204)A@
· BACHELOR OF COMMERCE <PPSM 2204) .
OF MAKERERE UNIVERSITY
DUJ1SE NAME ACADEMIC YE.AR 2016/2017
.
PRINCIPLES OF PURCHASING & SUPPLY CHAIN
MANAGEMENT .
!-\T-E · .- . th
~MESTER, 12 MARCH 2017 TIM:E: 11.00am - 12.00 pm
TWO
rSTRUCTIONS
• A.tt-empt all Questions
• _:All•Anrwers should be written in the ANSWER TABLE Provided
11
:· · Only the page containing the answer table shall be banded in for marking
. \
~. Which of the following is the immediate effect of purch.;,ing inadeci uate ms~~al? , • · • · ., .- . · \
A. Idle time . B. Stock out C. Customer dissatisfaction ···
D. Conflicts in the o~ganization E. Impulse buying . , •.. ·.·
· .
.'. .
9. At ':7"hat stage in the purchasing process are most contractual performance challenges
resolved?
A. Servicing B. Contracting C. Monitoring
D. Selection E. Specification ... ' •, I ,
'
10. Transac-tional relationships are likely to be deployed by the purchasing organization when
. buying; · ' .'
A. Leverage items B. Routine items C. Bottle neck items
D. Strategic items E. Critical items
13. The docu..rnent sent to a buyer infonning him that the goods have been dispatched by the
supplier is called. ·
A. .Purchaser orde~· B. Advice note C. Delivery note (
B. Quotatio·n
I
D. Requisition.note 'i
. . \
14. Which of the foilowing doc~en~ i~ ~aise~ ~.y-qser department in the purchasing . ··.· ; :..: .
· · · · E. Sketch diagram
A.· Dimensions B. Function C. Sample D. Brand name
23, Which of the following explains the category of supply term 'indirect supplies'?
A. Products used by a business which ate bought thro1..1gh a tiered supplier
B. Products used by a business which are riot specified by a buyer
C. Products used by a business that do not form. part of the end product
D. Products used by a business which are bought through a supply chain
E. Products that are delegated to the user department
·2s:-.important?
Which one of the following phases of the negotiation process is considered to be the most
· ·
A. Post negotiation phase B. Meeting phase C. Preparation and planning
phase D. Implementing the deal E. None of the above
26. The following are the elements of the pttroh:!.'.;ing process EXCEPT
A. Clients and Suppliers B. Methods and Procedures C. · Personnel and
-~Organisation D. Information E. None of the above
WhiCh
27. the one of the following with the evolution of purchasing focused on the acquisition of
5 rights?
Page 3 of s
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A._Prod?ct cent_ered purchasing B. Relational centered purc~lng' '·C. Prdcess ;,.,~\ci~,!·:·::: ·•...-~ 1 t
purchasing .D. Perfonnance centered purchasing E. Combination centereO purchasing: ; _,- : ,. 1 j
28. Which of the following is a direct purchase'; '
A. Capital goods B. Components C. Supplementary materials . ,-_
D. Consumables E. Investment goods · ..' ·
·• .,
29. An "alliance t _elationship" in supply chain management can best be described by this - · _
characteristic;
A. ~ti;titional trust B. Managing the relationship C. Communication
D. Jommg efforts E. Focus of the price
30. The period of stalemate in negotiation is also referred to as·
A. Success pe~od B. Deadlock period · C. 'Disagreement pedod
D. Recess penod E. 9onfusion period .
31. Indirect purchases are also known as primary purchases while \illect purchases are also
known as seco
32. BATNA is ,l/h t reach an a eement.
33. Procurement e ent
34. C 'tion to between the chains of those firms.
35. In ·ce, itis · r.i .
36. In ocurem
37. In Transactio . focus of the relationshl
38. A firms · rs
39. Pri .
-40. Ne as
41. A is a s ' ·on
42. Individual . are most lik chieve ne otiation tar ets than team ne oti.ations
43. Materials i hain should flow downstream
44. Toe lubricating oil used in the production process ·of a manufacturing firm is a component