W1-2-60-1-6

JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY

UNIVERSITY EXAMINATIONS 2019/2020
YEAR II SEMESTER I EXAMINATION FOR THE DEGREE OF BACHELOR OF
PROCUREMENT AND CONTRACT MANAGEMENT
HPS 2207: STORES CONTROL AND INVENTORY MANAGEMENT
DATE: May, 2020 TIME: 2 HOURS
INSTRUCTIONS: Answer question one (compulsory) and any other two.

Question one

a. Miguel has a product with an annual holding cost percentage of 20%, and ordering cost
of $110 per order, and annual demand of 15,000 units. The following price schedule
applies to the product from a supplier. What is the optimal order quantity? (15 mks)

1. Units 1-250 at $30.00

2. Units 251-500 at $28.00
3. Units 501-750 at $26.00
4. Units greater than or equal to 751 at $25.00

b. What are the assumption of EOQ. (8 mks).

c. Discuss disposal process & Methods of disposal as per the PPDA 2015?

Question two.

a. What are the Factors to consider when designing storage facilities? (12 mks)
b. Discuss the management of different types and characteristics of commodities in a
warehouse? (8 mks).
Question three

a. Explain the various factors to consider for selecting material handling equipment (10
mks)

b. Discuss the common methods of stores location and principles of store location (10 mks)
Question four

a. Expound on the types of stores layout? (12 mks)

b. Expound on Deregulations and control of substances hazardous to health in stores

management? (8 mks)