Register Number :

Name of the Candidate :

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P.G. Diploma EXAMINATION, 2010
( MATERIALS MANAGEMENT )

( PAPER - I )

150. PURCHASING MANAGEMENT

May ] [ Time : 3 Hours

Maximum : 100 Marks

Answer any FIVE questions, choosing THREE

from Part - A and TWO from Part - B.
ALL questions carry equal marks.

PART - A (3 × 20 = 60)

1. (a) Discuss the objectives and importance of

purchasing. (10)

(b) Explain the role of purchase manager in

an organisation. (10)

2. Explain the determination and description of

quality in detail. (20)

Turn over
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3. (a) What do you understand by purchases 8. What is the importance of a cost reduction
through rate running contracts and explain technique and its applications ? (20)
the following terms.
9. Explain the following :
(i) DGS and D rate running contracts ?
(i) Evaluation of supplier by weight point
(ii) Company rate / running contracts ? method.
(b) Discuss the various benefits of break - even (ii) Preparation of purchase budget.
analysis. (20) (20)
4. Explain the learning curve in detail. (20) 10. What are the indices considered for
performance appraisal of purchasing ? Explain
5. With suitable illustrations, explain the following
in detail. (20)
purchasing activities. Also, state the precautions
to be adopted for them.
(i) Concept of hedging.
(ii) Buying practices in fluctuating
markets. (20)
6. Explain in detail the purchasing under
uncertainity with suitable examples. (20)
PART - B (2 × 20 = 40)
7. Discuss in detail the factors those are to be
considered in make or buy decisions. Illustrate
this with suitable example. (20)