SEMESTER : TW~

TWO
·-( YEAR: PRINCIPLES - HA SI NG AN D SU PP LI ES
' COURSE:
MA NA GE ME NT
COURSE CO DE :
·I
DATE:
•• ••~ •••9 •0
TIME: . ••o ••• .. ••• ...... •••• •••• •••• ooc ,ne eo• ~•• o• .. • •
.. • .. • .... •• .. •• .. • ••• • o••
. • o••• •• ..... ... ... .... .....
.. •••• • " •••• "'• • • .. ••• ......

INSTRUCTIONS
• There are two sections,
·i
l
• Section A, CI RC LE the E
• Section B, indicate wh
• A TEMP LA TE has b
''
. I
) SECTION A
I
sin , ore pronounced in;
1. The five rights of pure
I

rchasing
A. Performance Cen red Pu
ng
B. Process Centere Purchasi
asing \
C Relational Cen ered Purch ng
D. Product Cente ed Purchasi
E. Price Centere Purchasing

nent of a purchase ord er?

2. Which of the following 1s a compo
A. Delivery Date
B. Contract Terminatio ~
C. Delivery Quantity
D. Unit Price
E. Place Of Delivery

j , BA TNA refers to
tiated A eem ent
A. Basic Alternative 'o Nego
ted Ag eement
B. Best Alternative T Negothl_
i'a_ted ct
C. Better Agreement o Negot
ated A
D. Big Alternative J'o e 9-ti

4. Information during ne otiation is mai

A. Pre-negotiatio Phrase
B. Actual Negoti tion Phrase
C. Post Negotiati n Phrase
r,

· · Phrase
. D. Formal Negotiation

5. How can an agen

da help negotiation?
. fi
A. Keeps the discuss10n ocuse
d ....
\
.
B. Provides roles of each patty es are
C. Promotes your ~ATNA. cture, defines the orde r in whi ch the issu
t time limits
D. Establishes the ISsues, gives s~ es, se s
discussed, introduces process issu
d hav e bee n disp atch ed is call ed.
goo s
6. The document that informs the buyer that
A. Quotation
B. Delivery note
C. Goods collection note
D. Advice note
E. Order acknowledgement note
a:-. from the othe r neg otia tor
is call ed
. . g for a b etter oue r
7. The tactic of consistently demandm
A. Building block technique
B. Broken record
C. Re- escalation of demand
D. Onus transfer
i
-:J
ing of the five righ t righ ts and thes e are;
I
! ' 8. Purchasing has been defined as the buy
A. Quality, Goods, Price, Time and Plac
e ,~
e
B. Quality, Quantity, Contract, Time and Plac
e
C. Quality, Quantity, Price, Source and Plac
Plac e
D. Quality, Quantity, Price, Time a11d
e negotiation tactic?
9. Which of the following is a collaborativ
A. Good guy/bad guy
B. Russian front
C. Log rolling
D. Flinching the price

l 0. Setting a negotiation range means;

A. Determining the entry and exit points
of the neg otia tor
otia tion
B. Determining the duration of the neg
ted agre eme nt
C. Determining an alternative to a negotia
the negotiator
D. Determining the best case scenario of

to day basis while runn ing a bus ines s.

11 . The fol lo~ g are i~ems n:ed ed on a da~ Materials
A. Mamtenance Repair And Operation
B. Supplementary Materials
C. Raw Materials
. !
D. Components And Sub-Assemblies

except'
12. The following are purchasing elements
'
A. Clients and suppliers
 u.. ~o prom is cl for low pric es?
27. Which of the following purchasing rights is,-
-
A. Time
B. Quantity
c. Quality ~--------~

D. Source
E. Delivery place

. , . , .... , .. , ..... stag e

28. Processing of incoming invoices is don
A. Ordering
B. Monitoring
C. Contracting
D. Selection
E. Servicing

29. Maintaining Purchasing infras

A. A tactical task
B. A strategic task
C. An operational task
D. All the above

30. Purchasing is associated

A. Internal Invoice
B. External Invoice
C. Outgoing Invoice
D. Incoming Invo ·ce
E. All the Abov
 SECTION B FALSE (Use the Template)
Indicate whether TRUE or
- ·- Answer
No. Questions - ·t s
31. Purchasing will tend to be centralised where 1 em7
needed by each department are highly homogenous
'
32. About 20% of your effort should go towards
preparation and 80% of your effort towards actual
negotiation

33. Adequacy in purchasing best explains Right

quality

34. A mobile phone battery is an example of a

component
35. The centralized purchasing model can be used as a
cost cutting strategy in buying entities. ..
36. Deadlocked negotiation occurs where parties see
prospects of further movement

37. Leverage items are high profit impact and low

supply risk purchases

38 In a horizontal structure, the buying sections share

support services.

39. Purchasing methods describe which actions have to

be done and by whom.

40. Negotiation in purchasing is part of selection

41. Lubricating oil used in the production process is a

maintenance, repair and operations (MROs)
material.

42. Contract management is a task that falls under th~

tactical tasks

43 . In a vertical structure, support services report

directly to the Chief Purchasing Officer

44. Monitoring and inspecting deliveries is a tactical

, / -
45. In a vertical structure, support staff have more
 0
L
46. The centralized model of purchasing promotes
flexibilit .

47 . With roactive urchasin , information is

48 , The major distinction between

Purchasing is that purchasin sac ional
as ect of

49, Where acceptable negotiation ra:

e is scope for negotiation.

50. Indirect purchases are also known as pri

purchases while direct purchases are lffi.ClWII .as
secondary purchases,
\\)'\COURSE NAME PRI NC IPLF...~ OF PURCllA,~HNG J\ND ~UP PLY MANAG:E:MF.NT
" ACADEMIC YEAR 2 01 7 - 2 01H
YEAR OF STUDY T\VO ( l ~-e,,,,J) )

SEMESTER 1'"\ \' .

DATE
~ .

INSTRl'C170~$/
. ,I
• ,\ ttrmrtl\H C)\1 (\'ti\Hl ~
• AH \ n~<\J~--~l!.Pu ld he wr1t1P11 in th e A S \\'ER TABLl·'. Prn v,d,,d hf'lnw
• 0nh 'l'•l.b'-' ' - ~ the answer hie shall he handPrl in for markin~
• .\ n 1:-,,·,.- r ~h:-111 lw writte n 1out crossin~ to be c:un~idNed r1s thf' ronect

1. A programm quirement is a deliverable of;

a) Ordering
b) Contracti1
c) Specific
d) Selecti

2. At w at stage of pu r hasing ar criteria very critica1?

a) Co ntracting
b) Specification
c) Selection
d) Servici ng

3. \Vhich of the foll owi · · al in the contracting exercise?

a) LegaJ depa11ment
b ) Accounts receivable
c) Accoun ts payable
d) Cser departmen t

4. Vvhid1 of t11c following pure

4) Tim t'
b; C}tHUity
cJ Soun.:.c
d J Ddiv\; ry place

Pi1ge 1 o t 7
20.In which purchasing model is the purchase of ho
a) Centralized
b) Decentralized
r~';;t
-
c) Coordinated
d) None of the above

21. Which of the following is a strategic t

a) Contract management
b) Specifying
c) category management
d) Supplier rating

22. The following are the three sect rs of tlie econom except
a) Service, primary and tertiary
b) Primary, secondary and trans ort sector
c) Primary, second~.ry and servi -sector ,,
d) Tertiary, fishing .and mining se r
~ ~

23. The following negotiatio , interest

. . to k eep t h~h~
1s e" appy at .,
. all expenses.
a) Aggressive strategy
b) Accommodative s
c) Collaborative st te
d) Integrative str tegy

24. The corp found in the:

a) Ce ·
b

rpo

5. Primary ory 1 e following except:

Coffee i coffee fac
· eners at a ca op
rs and window a orkshop
d cooling water in a m factory

allowing is an example of specification by functionality for a

computer;
a) Standard of the pro
b) Processing speed
c) Brand category
d) Providing supplier samples

Page 4 of 7
 (

V~o55r~S
27. ...................w as a st
ng ht s of p a e in th e pu rc ha si ng
evolution th at only fo
I : _a} R el at io n cused on th e five
'
b) .B at ch
c} Pe
d) P

ns of scarcity an d un
~ -...._~ on -1. '-.l
.V

actice; ce rt ai nt y in th e m ar ke
t, organizations are ad
ergency vising
eactive n;{n'CQ~
Routine:MJ:ehrlii
d) Prqac · re · asing
r.
g ar e el em en ts of th
a) e pu rc ha si ng pr oc es
· tio n v-- s ex ce pt
b)
.
c) M et ho s
d) S ta nd ~d s

30. T he follo
a) Se nd in gr e pu rc ha si ng pr oc es
s ex ce pt ;
b) N eg ot ia tio
c) C on tr ac tin g
d) A ft er·sa le s se

31. W hi ch on e of
-e following
. ac qu is iti on of th lu ti on of pu rc ha si ng
ri gh ts ? fo cu se d on th e
a) Pr od uc t ce nt er ed
p ch as in g
b) R el at io na l ce nt er
ed p ch as in g
c) Pr oc es s ce nt er ed
pu rc ha s ·
d) Pe rf or m an ce ce nt
er ed pu h~~·~ -
32. A t w hi ch st ag e
of ne go tia tio
as su m pt io ns ? i if fe re nt ia tin g facts fr
a). Specification ne go om
tia tio n st ag e
b) Po st ne go tia tio n
st ag e
c) M ar ke t ne go tia tio
n st ag e
d) Pr e- ne go tia tio n
. .;

33 . Th e ac qu is iti on
of goods an d services
a) Leasing , "p ur e . effecte th ro ug h;
b) O ut ri gh t pu rc ha se
c). H ir e pu rc ha se
d) All of th es e

Pa ge 5 o
 elop men t are bes t exa mpl es
36 Total qua lity man age men t and sup plie r dev
of a fir · ·
. us
elem ent in urc has in
finis he aniz atio ns
nd cus to an the sam e in urc has in
edg eme nt and ad ote are inte rna l doc ume nts in the
cess
42 Ma rket grad es in specification is the
sam e as specification by bra nd
nam e
· ·s sen t to a s lier in the mar ket
a clerical a
the pro cur eme nt cycle
45 Invoice verification is t e final step in

· End of question pap er

Page 6 of 7
TIME: . . . .
.'..
. . -
·- -~
INSTRUCTIONS
. . ANSWER TABLE Prov ided below _\ · .. ; i
• Attempt all Questions .h d d in for mar king . .·
• All Answen should be written m the con- ect
• Only the page containing the answer table shall ~e :n be cons ider ed as the .
with out cross mg o e .
.• An answer shall be written once
answer

• •
• ,>• ,
~ - ...
. .
,...., ..
:,- . :
. / .
. .- .
.
. .: -: . .. . . .. . .
'
·. . ' ., . •. . .

proc urements ..··..'

1. The following are regarded as the various categories of
A . ·Supplies, goods, services
~ Supplies, works, services
C. Insurance, works, services
D. Supplies, computers, works
E. All the above
is referred to as;
· 2. The piloting of negotiaijon strategies at preparatio./n stage
A. Dummy test
B Dummyrun
C. Dummy race ' ·. •.
D. {?ummy pull ·..
· E. All the above
g on either party to:a · ..
h of the following negotiation strategies involves self sacrificin
3. Whictiatio .
nego n?
· A. Integrative strategy
.B. Distributive strategy
<;. Accommodative strategy
D. Competitive strategy
E. None of the above
4. In which sector does the quarrying industry fall?
A. The tertiary sector ·
B... Primary sector

Page l ·of 8
 C. Secondary s{ctor/ ·
- - /·
D. Manufacturit1~s'cc tor )
.t .
I
E. None of the /abo ve
/
5. Which of ~ ~ II ·
m
A. Stan d _owmg is· ou--r xnm
1.
. I f .. .
p c O ~pcc t fi caflon by func tion nlit y,
B,... U
C. mnd nainc
I)( Sample
/ {. Sketch r
-J ~ .
f 6
/ · ln ":""" of th;,Wy:C:s ~d sup
ntillion r
A. 30
B. 3
lio
tive
·er' s price ranges being 30 to 50 million and
of the following prices indicates a possible outc
, sa Go bS~ l o
35 to 70
ome?
.\o ?r 14 v __
C. 71
D. I
E. 65 \

t
7. Wb icho W11 UH~ \P most important activity at the pre negotiation
A G stage?
B. Se .
C. Selecting a
D. Choosing a
E. Setting ranges

8. Differentiating between facts

at the pre- negotiation stage calls for;
A Avoiding p c- testing of strat
B. Avoiding ste ing
C. Avoiding conflictin
D. Avoiding distractive commuruc
E. Clear allocatio of roles

9. 'The up-stream supply chain mo ent of products is sometimes referred to as;

A Forward flow
B. Horizontal flow
C. lntemaJ flow
D, External flow
E. Reverse flow

l O 'The ultimate customer i.s synoaymo

A. Whole sell er
B. RetajJer
C. Conswner
D. Dealer
E. ~tockist

Page 2 of 8
I..
t . nded supply chains?
\ 1. Vlhich of the following is true about ex e
A. Supplier's customer
B. Customer's customer
C. Ultimate supplier
D. Tbird party logistics firms
E. All t:bc al1'l,re . . .i'. d at post negotiation stage.
is 811 act1v1ty per1onne ·
12. ···•·· .. ..... ········· ·· .. · · · · .. · · · ·
A. Ratific-ation
ij. Making concessions
C. Dealing with deadlocks
D. Bargaining
E. all the above . which the
13 ........ .. .. ... .. .... ...... ....... ... .. is a stage in the procurement process a1 -
programme of requirement is designed.
A. Servicing
B. Ordering
C. Specification
D. Monitoring
E. Evaluation

14. Which of the following documents is used to request the supplier to deliver goods and
services?
A. Order ~knowledgement note
B. Invoice
C. Requisition note
9,. Purchase order
E. Delivery note

1S. Which of the following documents is raised by procurement departmen t?

A. Order acknowledgement note
B. Invoice.

°'
C. Requisition note
Purchase order
E. Delivery note

16. The legal department is mostly involved in procurement at~

A. Sourcing stage
B. Spedfication stage
C. Selection stage
D. Needs identification stage
~ Coatracting stage

17. Which of the following is an odd man out?

A. Delivery note
B. Purchase order
C. Goods t"etumed note

Page 3 of 8
\
 D. Goods reQeive
E. Requisition no

1 ~ -A purchasing fi has high bar aining pow

er i,r
A. Monopso y market structur · '
B. Mon~~,,9 y market struct
C. Olig? _~ly mar1.ci-i9trticture
D. ~ ~op otis tiZ"market struc
E.. / ne of the above r
9 ✓unctional .specificati

7:
s are somef es referred to as;
A. Stand~
a rspec· cations
B. Technic ec ~,..~ ons
., C.- ~
Outp . specifi :.ations
- I). Co orm an specifications
E. put specifi ations
20 - In the zone·o f pote ·a1 agreement supplie
r,s worst case scenario is .... .. ••· •· ·•·· ·· ·· ·· ····
A. Lower than ~e/ ~e r's worst case scen ·
ario
B. Higher tha n tqc b er,s wo . t case scenario
C. Equal to the b er' s wor st~e scenario
~ Lower tha n buyer.' s best Jase,scenario
c. 1'.one of the a ve
---~
21 . Which of the following is a strat
...

purchasing?
A. Contract management
B. Processing p yment
C. Specifying
j)- Portfolio manageme
E. Supplier rating

22 The way an organiz:ation wants to pro

fil itself wit h· al parties is called,
A. Performance indi~~
~ Purchasing policy " '
C . Pw chasing procedur~
I.). Purchasing structure
E. None of the above

23 Wh ich of the following is not true a~

servicing in the urchasing process?
A. Problem solving
B. Installation
/ _,,✓
,,. ,,.,,,,.
C. Supplier management ...---~
D. Repair and mainten ance
E. Training of users ~- -- - -- -- ---
Z4. Which of the following is an indirect purchase of a manufacturing firm?
A. Components
B. Semi manufactured goods
C . Finished good
p..Supple1J1entary goods
E. Sub assemblies

25. The second stage in the eyolution of purch

~ · Process -centred purchasing
B. Relational purchasing
C. Product -centred purchasing
D. Performance- centred purchasing
_yµz Cl/. {(:( C

Jj
·, ! •
C-QlJ~-
E. None of the above
c...e;W '< ,.,_,)--, ,v!
0,-J t..·• ,.. ";
26. Operational tasks include the following
("r"\.{),' 1A>-', '':
A. Ordering for the requirements
~ er-<
B. Coordinating specification
S... Monitoring orders and deliveries
D. Supplier management
E. Supply data collec don /

27. The following are tactical tasks eJcept:

A. Supply Base reduction
B. Supplier evaluation and rating
C. Contract management -
D. Agreement on corporate sup ; r agreemen "
E. Invoice verification and pa men
f

28. The manner in which a p to relate with suppliers is best explained

by;
A. Perform
B. Purchas·
C. ~
D. Sfi>~li ·l"\!lr'l~l ll.'I.I

~ . l+fC ~a. tw!<tn . . .

29. Tli ·{ollowing f services purchased by firms except;

A. Intiil~ilit;
~ :somogeiroi
C. Pcrishabili
D. Heterogenei
E. None of the above

30. Private procurement differs from p ·c procurement by;

A. Objectives
B. Responsibility

Page 5 of 8
 C. Legal s
p. Source . ._______
E. All the

· 31. The c e purchasin nt is found in the:

·f · A. zedpu r ·
i -
B.
~. ~~~~c.i:-~ ,_,_____ l
D
/J. ofth .
3/· Purchasing r .cn.,.. ..1-n allocated basing on the following EXCEPT
A~~ ~
B. By the
-
chased items are to be used.
C. By s . ge o chased items
!). By plant lo
E. None of Apo

33. Which is the odd m

A. Stock taldng
~ Evalu ation of prices
C. Order progressing
D. Invoic e trackiIJ.g \
E. \Vord proc essit ig--\--
1
I
I

34. Which one of the fo~ is not · a -factor . affi ting Purchasing's Position in ·t he
Organizational structure i -- .
A. Geogr aphica l location \
B. Management view towarfs purchasing .
C. Purchasing's share in the\end-prod ' s cost price __
D. Financial position of the ~omp ~(
, , E. Personal i;elationsbips \ ----..____ ~~

.· .
i . '----:"H ~..,,,
~;: ,- : =• . r .,. ,_ _ __ .
1 '· : ~ ,
I : (:_ J
I . :·. ·:.
·\
i
~-:~:r --- - -~-.
A Centralized Purchasing
1

Page 6 of 8
 B. Decentralized Purchasin
g model
C. Coordinated Purchasin
g model
D. Vertical purchasing m
odel
E. Horizontal purchasing
model

SECTIONB (15 Mar

ks)

36. P~chasing tasks an

d responsibilities can be
hierarchy· ·1v-u e, perfory d at any
~7 . Purchasing· orga

38. In the horizontal

nization specifically
purchasing activities {a
lJ .e ·
consi . ·s t h i :· ·
io1· .o responsibility
for
systems of purchasin
covered in each buying organizat1- 11:. s port·
section ~ l g services are compl
ete!):
39. Under centralized
pu rc ha si ngall £ c~sions relating
this central place.. {f l( purchasing activities ar
e \,; - e m ad e at .
40. Contract m_ anagement is an ac ,.v
performed by the purc ity that follows 'th in
~e
.
hasing . tactic al ta sk s that'have to be
• 41. Strategic tasks trv.e
·are execut
impaet. f~-e ' .·
manage ent level and
lj-'-'J'-,, U."" "

have a medium. - term

_42. Ta~!ical/~ks knab
43 . ~re.1 · 1~g p chas
th
l: atta· e~t ~f . ;o~g
mg k d scnptio 1s
/:rm goal of the compa
·
ny (vision). r-f1(efe
44 · urch ,• ~c Ji ca l task ~ (fe
tend t be centrali ed
he~erog ,ne . u ,(a. l-fQ where items needed
., at each unit are larg~
. ly
45. In verti al s rc tu re ·
suppu.. . services staff
46. In the I\Ocur,<!)1- t concentrate on a specifi
7. It's ha!d, to' get all
process serv· · g prec
ed~s contracting rf'X !J
c activity .f?I t,Je
chasiug "rights" in.on e
48. Direct J'rrchasea c, e offering. .frvil
• t be trace:! in th
e final pm0uct. fel
(✓t
50 . The t :~i~r)'
49 . Pfo•cu ';,r1ent en0o
mpas s supply chain
!;ector is loca .d in ~he
man ag ement fr v e
rem(?te areas of any co
f
untry q {.JQ ·
·
END OF QUESTIO
~ PAPER
\;,.
•,

~ -J

Page 7 of 8