Question Bank of Purchase and Inventory Management

Questions carrying 2 Marks

Module I

1. What is purchasing?
2. What is purchase management?
3. What are the purchase responsibilities of purchase manager?
4. What do you mean by requisition in purchasing process?
5. Mention the 4 Purchasing objectives.
6. What is Quotation
7. What is purchase order
8. What is standard purchase order?
9. What is contract purchase order, Explain with example
10.What is blanket purchase order?
11.What is planned purchase order?
12.Mention the Types of purchase order(PO)
13.What is contract?
14.What is purchasing organization structure?
15.Give 2 examples of companies who follow centralized and decentralized
purchasing structure.
16.What are the responsibilities of a purchasing manager.
17.What should be included in a contract
18.What is procurement
19.What is E-procurement
20.What are the Reasons to opt E-Procurement
21.Draw the E-procurement value chain

Module II

1. What is Category strategy

2. Mention the steps of strategy sourcing process.
3. Draw the Kraljic matrix
 4. Mention 4 Key factors for supplier selection
5. Expand ISO and state its meaning.
6. Mention any 4 quality management principles of ISO 9000.
7. What are the criticism of ISO 9000 and 9001?
8. What do ISO 9000 and ISO 14000 stand for?
9. What is the effect of implementation of ISO 14000?
10.What are the key factors for supplier evaluation?
11.What are the key factors for supplier performance?
12.What is quality? Mention its characteristics.
13.Mention 4 elements of QMS.
14.Mention 4 important components of quality management.
15.What is quality management system?
16.Mention the 3 dimensions on which rating of supplier is based.

Module III

1. What is meaning of right price?

2. Differentiate between reasonable price and lowest price.
3. Write the meaning of explicability.
4. What is determination of right price?
5. Mention the steps in Right pricing strategy.
6. Mention the factors through which price can be ascertained.
7. Mention four Factors affecting Determination of Prices.
8. What is limited tender system?
9. What is cost analyses?
10.What is price analyses?
11.Mention the problems which lead to delivery delay by the supplier.
12.What is price forecasting?
13.Mention the Classification of Pricing.
14.What is purchase budget?
15.Problem :
 Arun Company is the manufacturer of men’s pants. The company would
like to maintain 40000 yards of fabric in ending inventory. the beginning
fabric inventory is expected to contain 20000 yards. The expected yards
of fabric needed for sales is 90,000. Compute the yards of fabric that
Arun Company needs to purchase
16.Problem :

Fisher price estimates that it will produce 30450 dolls during the year.
Each doll requires a pair of shoes, to receive the same the company has
used category sourcing. The beginning inventory of shoes in 10000 pair
the target ending inventory is 8000 pair. How many shoes the company
be purchasing during the year.

Module IV
1. What is Material Management?
2. What are the objectives of material management?
3. Mention 4 importance of material management.
4. What are the key functions of material management?
5. What is the role of material management?
6. Mention any 4 material handling principles.
7. What is Material Planning? Mention Factors affecting Material planning?
8. What is Bill of Material? Mention its 2 types.
9. Expand MRP. State its meaning.
10.What is Profit Center Concept?
11.What is Inventory/stock?
12.Mention 4 Functions of inventory.
13.State the characteristics of inventory.
14.What are the Types of Inventory?
15.What is Unitizing?
16.What is packaging?
17.State any 5 reasons for holding inventories in an organization/
 Module V

1. What is inventory costs

2. What is ordering cost
3. What is holding cost
4. What is Shortage cost
5. State the 2 difficulties in assessing the inventory costs.
6. State the policies of inventory
7. What is push pull inventory?
8. What is risk pooling?
9. What is inventory management process?
10.Draw the inventory management process.
11.What is performance measurement in inventory management?
12.What is inventory control system.

Questions carrying 5 Marks

Module I

1. Explain Purchasing Responsibilities in detail.

2. State and explain the purchasing objectives of an organization.
3. Explain the Purchasing management process of an organization with its
major tasks.
4. Draw the Purchasing Process and explain how it works in an organization.
5. Draw the proforma of quotation and purchase order.
6. What is contract? Mention any 5 advantages and disadvantages of contract
7. Explain the different types of purchase orders with the help of example for
each type of purchase order.
8. State and explain the essential things that should be included in a contract.
9. What is procurement? Explain the factors that are been involved in the
procurement process.
10.Explain centralized and decentralized purchasing of a company with
advantages and disadvantages.
 11.Explain the E-procurement value chain.
12.Differentiate between procurement and purchasing.
13.Explain the responsibility of
a. Corporate Procurement Officer(CPO)
b. Corporate buyer
c. Purchasing engineer
d. Project buyer
e. Material Planners
f. MRO Buyer

Module II

1. Explain the Strategy Sourcing Process of organizations step by step.

2. Explain Kraljic Matrix considering it implication for textile industry.
3. Explain key factors for supplier selection.
4. Explain ISO 9000 and ISO 14000 with its implications to a industry.
5. Briefly explain the Eight Management Principles which are set as
standards for supplier selection.
6. Explain the Key Factors for supplier evaluation.
7. Explain its Key Factors for supplier performance.
8. What is quality? Explain the Characteristics of Quality.
9. Expand QMS? Explain the Elements of QMS.
10.Explain the rating measurement criteria for selection of supplier.
11.Explain the measurement criteria for selection of suppliers in relation to
goods and services.

Module III

1. Explain the term “Right Price” with reference to a product example.

2. Explain the right pricing strategy used by an organization for setting up of a
price for the product.
3. Explain the Factors Influencing on Pricing.
4. Explain the factors which determine the right price for a product.
5. Mention and explain the Tenders through which price can be determined.
6. What is a tender? Explain the types of tender used to select a supplier.
7. What are price analyses? Mention the ways in which it is to be implemented.
8. What is price? Explain the Classification of Pricing

9.
Calculate price forecasting using all 3 (Simple average method,

Weighted average method (giving weightage for last 5 years(, Moving

average method for 5 years. Aanalyze on the data and interpret on which 2
methods can be best adoptable for price forecasting.

Module IV
1. Explain the primary and secondary objectives of materials management.
2. What is material management? Explain the Key function of material
management.
3. Draw a diagram stating Material Classification taking textile industry as a
example.
4. What is the Role of Material Management? Explain.
5. Explain Material handling principles.
6. What is inventory? Explain the characteristics of inventory.
7. Explain the Importance of inventory.
8. Write a short note on Unitizing, packaging and shipping.
9. Explain the Reasons for holding inventories with an example.
10.Explain the Functions of inventory in an organization.
Module V
1. Write a note on Inventory.
2. What is inventory cost? Explain the types of inventory costs.
3. Explain Inventory costs and its relevance for decision making.
4. Explain the term “Inventory accounting system”.
5. What are Push Pull inventory methods?
6. Write a note on Risk pooling?
7. What is Inventory management? Explain the Inventory management
process.
8. What is Inventory control system?
9. Explain the Performance measurement used in maintaining of
inventory.