Purchasing and Supplies- Provisioning – November 2019 KNEC Diploma

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This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following courses:

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1. (a) Mr. Jambu, a newly recruited officer, has been facing challenges when provisioning goods for his organization. Explain five such challenges. (10 marks)

(b) Explain five disadvantages of using the corrective quality control method in the manufacturing operations of a firm. (10 marks)

2. (a) Goma Limited has established a provisioning department in its organizational structure. Outline five aspects in which this department may relate with the finance department in the company. (10 marks)

(b) Some organizations appraise their suppliers in the process of sourcing for materials requirements. Outline five reasons that may account for this practice. (10 marks)

3. (a) Explain five supplier related factors that may cause failure to supply ordered goods to a customer. (10 marks)

(b) Outline five roles that the user department plays in the process of provisioning goods in an organization. (10 marks)

4. (a) Competitive bidding technique has been widely used when selecting suppliers of goods required by organizations. Explain five advantages of using this technique. (10 marks)

(b) Toya distribution firm has been holding a wide variety of inventory in its operations.
Explain five challenges that the firm may face from this situation. (10 marks)

5. (a) Some organizations have adopted the team-work approach when developing their provisioning plans. Explain five advantages of adopting this approach. (10 marks)

(b) The outcome of a negotiation exercise usually depends on the strengths of the parties involved. Outline five circumstances under which a buyer may be in a stronger position during the negotiation process. (10 marks)

6. (a) A multi-functional team has been constituted to carry-out Value Engineering (VE) task at Bongo Enterprises. Explain five factors that the team may consider when carrying out the task. (10 marks)

(b) The general procurement rules require a buyer to pay contractors after the execution of a contract. Explain five circumstances under which this rule may be waived. (10 marks)

7. (a) Explain five factors that may influence a contractor to terminate an on-going contract under the force majeure clause. (10 marks)

(b) Nambia manufacturing firm has decided to adopt international standards when nspecifying its materials requirements. Outline five reasons for adopting such standards. (10 marks)

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