K. P.

College of Management, Agra

Second Sessional Test, 3 rd Semester, MBA, 2009
Subject: Supply Chain Management Paper Code: MBA 031
1
Time: 1 /2 hrs. Maximum Marks: 30
Section – A
Attempt all questions 1x6
1. Which of the following is not among the five R’s of efficient procurement of inventories for purchasing:
(a) Right quantity (b) Right quality (c) Right promotion (d) Right price (e) Right time
2. The investment in fixed assets and in inventories should be kept at minimum in relation to corresponding volume
of sales –
(a) To develop sources of supply (b) to ensure continuous flow of production
(c) to increase the asset turnover (d) to achieve maximum integration with other departments
3. Which of the following is not the shared function of purchasing:
(a) Following up on delivery promises (b) Obtaining technical information and advice
(c) Accounting (d) Purchasing and marketing research
4. For vendor rating critical incidental method is useful for –
(a) Big organizations only (b) Small organizations particularly
5. In periodic storetaking , stock verification takes place –
(a) Continuously (b) Once in a year (c) When store is open for receiving and delivery of product
6. The advantage of centralized store is –
(a) Less waiting time (b) Low inventory level (c) Less disruption of supply due to breakdown of transport vehicles.
Section- B
Attempt any three questions 3x3
1. What are the different purchase decisions. Discuss in brief.
2. Briefly discuss the steps involved in purchase procedure.
3. Discuss in brief about purchase policies.
4. Discuss the basic functions which are the sole responsibilities of purchase department.
5. What do you mean by inventory? Discuss the different types of inventory.
Section – C
Attempt all the questions 5x3
1. Discuss in detail types of the cost to be taken in consideration in classical inventory analysis.
Or
Discuss the different factors affecting inventory control.
2. Discuss the advantages and disadvantages of centralized purchasing.
Or
Describe about the different operations of stores management.
3. An Electronics Company produces 4000 TV sets in a year for which it needs an equal number of tubes of a certain
type. Each tube costs Rs. 10 and the cost to hold tube is Rs. 4.80 . Besides the cost of placing an order is Rs. 150,
which is not related to its size. Find the Economic Order Quantity (EOQ) at which the cost function is minimum, and
the total variable cost associated with the ordering quantity of that size.
Or
Find the optimum order quantity of a product for which the price breaks are as follows –
Quantity : 0 ≤ Q1 < 500 Unit Cost : Rs. 10
Quantity: 500 ≤ Q2 Unit Cost : Rs. 9.25
Monthly demand for product is 200 units, the cost of storage is 2 % of the unit cost and the cost of ordering is Rs.
350 .