Purchasing & Supply Chain Management (BS2541) Year 2 Examination May 2009 - Closed Book

Answer 3 questions only

Question 1 Both Oscar Wilde and John Ruskin (cited in Lysons & Farrington, 2006.pp.453) recognised that price and value are not the same thing. Oscar Wilde defined a cynic as a man who knows the price of everything and the value of nothing. Ruskin is alleged to have declared; There is hardly anything in the world that some men cant make a little worse and sell a little cheaper, and the people who consider price only are this mans lawful prey. Discuss the above extract with specific reference to pricing strategies used by purchasing or buying professionals and the creation of value in light of the current trading climate.............................................................................................................................. 100% Question 2

(i) Consider the stages identified by CIPS to form the purchasing cycle but further elaborating on the significance of effective negotiation within the process60% (ii) Identify the main attributes required of a buyer through the effective and successful negotiation process with suppliers......40%
Question 3

Using industry examples explain the concept of social responsibility and business ethics and why the purchasing team need to adhere to a code of conduct, in order to achieve organisational goals ..100%
Question 4

Supply chain management, the just-in-time philosophy, and total quality management make up a hierarchy for breakthrough competitive advantage. In order for supply chain management to reach its full potential and provide benefits to its members, trading partners must adopt a JIT operating philosophy. Similarly, the primary ingredients in the success of a JIT program is the use of TQM and its improvement tools (Wisner J.D., Leong G.K., Tan K.C., Principles of Supply Chain Management: A Balanced Approach, 2005)
Question 5

Buying from overseas often presents particular challenges compared to sourcing more locally. Examine the nature of these challenges and ways in which they may be overcome. .100%
Question 6

Analyse why contract law has an increasingly vital role to play in Purchasing & Supply Management and further illustrate why it is important for procurement professionals to understand what creates a legally binding contract which is enforceable under English Law, whilst drawing upon issues such as battle of the forms..................................................................................................100%