Faculty of Management Sciences
Master of Business Administration
MBA Batch 10 Group A, B, and C Mid-Semester Examinations –
Subject: Procurement Management
Date: 29/09/2014
Time: 3 hours
(Answer all questions from Section A and B):
Section A
Select the best answer
(15 points)
1. All firms must have a purchasing department; otherwise the purchasing function cannot be performed.
a. True
b. False
2. Purchasing is the managerial activity that goes beyond the simple act of buying, and which includes the planning and policy activities covering a wide range of related and complementary activities.
a. True
b. False
3. It is impossible for any organization to
4. In the multiple-type factory system of today, achieve its full potential without a any company generally uses two distinct successful purchasing activity. sources of supply: inside manufacture and
a. True outside manufacture. The production
b. False department is responsible for inside manufacture, including the authority to schedule production in economical quantities, and to do so far enough in advance to have materials available when needed.
a. The above scenario describes:
b. Purchasing as the manager of resources.
c. Purchasing as the manager for inside manufacturing. d. Procurement as the manager of resources.
e. Purchasing as the manager for outside manufacturing. 5. There are areas where friction may
6. Which one of the following factors does not develop between purchasing and other determine the long-run quality level of a departments because of misunderstanding firm’s purchased materials.
a. Creation of complete and appropriate over who should do the work. In many specifications for quality requirements. companies the materials management form
b. Selection of suppliers having the of organization has been introduced to technical and production capability to do
____________ this friction and to the desired quality.
____________ coordination among the
c. Development of a