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    BBC 1101 Principles of Purchasing

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    BBC 1101 Principles of Purchasing

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    BBC-1101-PRINCIPLES-OF-PURCHASING.docx

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    BBC 1101 Principles of Purchasing

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    y mugambi

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    © All Rights Reserved
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    of 2

    MERU UNIVERSITY OF SCIENCE AND TECHNOLOGY

    P.O. Box 972-60200 – Meru-Kenya.


    Tel: +254 (0) 799 529 958, +254 (0) 799 529 959, +254 (0) 712 524 293
    Website: www.must.ac.ke Email: [email protected]

    University Examinations 2017/2018

    FIRST YEAR, FIRST SEMESTER EXAMINATION FOR CERTIFICATE IN BUSINESS


    ADMINISTRATION
    BBC 1101: PRINCIPLES OF PURCHASING

    DATE: SEPTEMBER 2018 TIME: 1½HOURS

    INSTRUCTIONS: Answer question one and any other two questions.

    QUESTION ONE (30 MARKS)

    a) Describe the main objectives of a purchase organization. (5 Marks)


    b) The work of purchasing is performed by the purchase section and in the broader sense,
    their functions and responsibilities. Discuss (10 Marks)
    c) Write note in the following.
    (i) Economic order quantity (5 Marks)
    (ii) Bulk order quantity (3 Marks)
    (iii) Arbitrary order quantity (2 Marks)
    d) Discuss the levels of standardization. (5 Marks)

    QUESTION TWO (20 MARKS)

    a) While selecting the source of supply, the purchasing executive is guided by specific
    factors. Discuss those factors. (10 Marks)
    b) Write short notes on the following in the context of purchasing.
    (i) Right quality (2 Marks)
    (ii) Right quantity (2 Marks)
    (iii) Right place (2 Marks)
    (iv) Right source (2 Marks)
    (v) Right time (2 Marks)

    Meru University of Science & Technology is ISO 9001:2015 Certified


    Foundation of Innovations Page 1
    QUESTION THREE (20 MARKS)

    a) Discuss procedure adopted in making a purchase for an organization. (10 Marks)


    b) Write short notes in the following.
    (i) Hand-to-mouth purchasing. (4 Marks)
    (ii) Forward purchasing (3 Marks)
    (iii)Hedging (3 Marks)

    QUESTION FOUR (20 MARKS)

    a) Discuss factors influencing the strategy and tactics in negotiation. (10 Marks)
    b) Who is negotiator? State the main qualities of a negotiator. (10 Marks)

    QUESTION FIVE (20 MARKS)

    a) State the advantages of inspection of materials. (5 Marks)


    b) Discuss categories of packages of the goods. (10 Marks)
    c) Describe the various methods of describing quality. (5 Marks)

    Meru University of Science & Technology is ISO 9001:2015 Certified


    Foundation of Innovations Page 2

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