MIDTERM

6TH DECEMBER, 2021.

NAME : Rashedul Islam Sjfat

ID : 1811612030

GROUP NO. :

COURSE : SCM450

SECTION : 01

INSTRUCTOR : MD MOFASSEL HOSSAIN [MOF]

DEPARTMENT : DEPARTMENT OF MANAGEMENT

YOU MUST ANSWER ALL QUESTIONS

PART – A : 20 POINTS

PART – B : 20 POINTS

TOTAL : 40 POINTS

Note 1: All answers must be answered within the same page (inside the box) of the question.

Note 2: Read and follow every instruction (given inside the box) carefully and very accurately.

Note 3: Highlight for each important point of your answers (using bold and acceptable color).

Note 4: If any of answers match with the slide words, you will get a ZERO (only where it’s applicable).

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 PART – A
1. Show a basic purchasing process. You can draw it or type it. Your answer must be
sequentially and logically correct. You must put arrow/indication between steps to show
flow of the steps. You should begin from demand requisition. [20 Points]

(Draw or type within this box)

Buying is a paper-based process that takes a lot of physical effort. With the advent of
computers, local area networks, and the Internet, many companies are becoming
increasingly automated and electronic. Ultimately, a successful purchasing system ensures
that information from consumers to buyers and lastly to suppliers is efficiently transmitted.
Once information is sent to the correct vendors, a system must be in place to simplify the
flow of items and invoices to users and the accounting department. Finally, the system must
have enough operational or internal control to prevent purchase money abuse.

types of purchasing system manual , material requisition and travelling requisition

Manual system: A good buying system is one that is simple to use and still provides enough
internal control of the process. This system is a manual purchasing system. The manual
purchase method is time-consuming and error-prone because of the many data entry
duplications that occur at different points in the process. Material Requisitions and
Purchase Orders share comparable information such as product descriptions.

Material requisition: When a material user wants a material, they submit an order form
(MR). Some firms use an order requisition instead of a material request (or purchase order).
The material request specifies the product, quantity, and delivery date. This is determined
by the organization's internal financial controls. Usually, the issuer sends the warehouse
both the original and a duplicate. Taking the goods from warehouse to end-user. Using the
information in this copy, the accounting department may charge the applicable user or
department for the items.

Travelling requisition: Most requests are sent using the general material request. A traveling
requisition is used for repeated material and component requests. The product description
and other essential details, such as delivery lead time and lot size, are preprinted on the
traveling requisition.

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 PART – B
2. How can a business manager justify the expensive establishment cost of
eProcurement? [5 Points]

Answer within this box

(Write maximum two points using two bulletins. Highlight the two points.)

Buy more and save time matching bids to buy requests.

Cheaper pricing for products and services owing to increased supplier engagement; lower inventory costs due
to more frequent purchases; fewer buyers; lower administrative expenses; elimination of preprinted purchase
requisition forms; and quicker order fulfillment.

3. Why is Supplier Recognition Program important? [5 Points]

Answer within this box

(Mention two important points using bulletins)

While many organizations analyze supplier performance, just about half give out prizes and have gratitude
banquets. Today, firms must acknowledge and celebrate their top suppliers' successes, not merely reward
them with new revenue. They are role models for other suppliers since they have won awards.

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 4. How can Early Supplier Involvement make difference? [5 Points]

Answer within this box

(Mention only one point)

Suppliers may enhance cost, quality, and delivery time by designing products and procedures in-house to fit
the buyer's demands.

5. Why is Supplier Evaluation needed? [5 Points]

Answer within this box

(Mention only two reasons using two bulletins)

Customers and suppliers may use supplier assessment to reduce supply chain costs. Suppliers who are rated
may be motivated to improve. According to the provider, there are many other concerns. Accurately
communicating with suppliers and taking action are recommended practices for supplier evaluation.

* * * GOOD LUCK * * *

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