KENYA INSTITUTE OF MANAGEMENT

PSM 230: PURCHASING AND SUPPLY CHAIN MANAGEMENT

Instructions: Attempt any 2(Two) Questions

TIME: 1 Hour

1)

A. Briefly define the following terms as applied in Purchasing and Supply Chain

Management (5Marks).

I. Procurement

II. Supply Management

III. Logistics Management

B. Discuss how a firm can use Supply Chain Management to gain competitive

advantage (10 marks).

2)

A. Explain three reasons as to why purchasing manager should utilize Early

Supplier Involvement -ESI (5 Marks).

B. Identify the main reasons and challenges of global sourcing (10 marks).

3)

A. Discuss the main inefficiencies of traditional purchasing procedures (10

Marks).

B. Enumerate the main buying strategies for small orders, emergency orders and

bulk purchases (5 Marks).

4)

A. Having selected a supplier, how would you ensure compliance with standards

and their maintenance in the longer term? (10 marks).

B. Mention any two modern inventory management techniques (5 Marks).