ime: 2 Hours
Instructions
1.The paper adds upto 100%
2.All questions carry equal marks
1 (a) Highlight four types of stock citing relevant examples where applicable. (12 Marks)
(b)A manufacturing firm whose primary objective is to produce emphasizes on inventory
control. Enumerate two reasons why inventory control is emphasized. (4 Marks)
(c) Define the term inventory control. (4 Marks)
2.(a)Explain five advantages of holding higher stock level in an organization. (10 Marks)
(b) Highlight five reasons why most companies result in holding stock. (10 Marks)
3 (a) Engineering department is a very crucial section within a production firm.
Plain the relationship it has with purchasing and supplies department. (4 Marks)
(b) State six impacts of purchasing and supply on the organizational efficiency and its
profitability.(6 Marks)
4 (a) Enumerate five characteristics of re-order level system. (10 Marks)
(b) Explain how classic inventory control technique. (10 Marks)
5 Describe the purchasing procedure. (20 Marks)