purchasing and supplies

Topics: Supply chain management, Management, Organizational structure Pages: 155 (22463 words) Published: October 13, 2013
Mt Kenya

University
 

 
 
 

P.O. Box 342‐01000 
Thika 
Email: Info@mku.ac.ke
 Web: www.mku.ac.ke  
 
 
 

DEPARTMENT OF BUSINESS AND
SOCIAL STUDIES
 
COURSE CODE: BBM 214
COURSE TITLE: INTRODUCTION TO
PURCHASING AND SUPPLIES
MANAGEMENT  

 
Instructional Material for BBM- Distance Learning

i

COURSE OUTLINE
COURSE CODE: BBM 214
COURSE TITLE: Introduction to Purchasing and Supplies Management Purpose: To introduce students to purchasing and supply management concepts and techniques necessary to perform the purchasing function of an organization

Course Objectives: By the end of the course the students should be able to:•

Describe the importance and relationship of the purchasing department ad other departments



Explain the purchasing cycle



Describe warehousing and inventory control

Course Content:
Introduction- meaning and evolution of purchasing; objectives and principles of purchasing; Relationship between purchasing department and other departments; Specification of requirements; Purchasing records; Sourcing; Warehousing- receipt and inspection of materials; Inventory control systems- demand forecasting; Inventory related costs; Location and layout; Physical distribution.

References


Arjan Van Weele (2004), Purchasing and Supply Chain Management, PVT publishers, New Delhi



Benton W C (2007), Purchasing and Supply Management, Routledge, London



Michael Quayle (2005), Purchasing and Supply Chain Management: Strategies And Realities, Routledge, London

MODE OF ASSESSMENT

MARKS (%)

C. A.Ts and Assignments

30

Final Examination

70

Total

100

Pass mark

40

Module Compiler: Mohamed S. Dawe
ii

TABLE OF CONTENTS
Page
COURSE OUTLINE....................................................................................................................i TABLE OF CONTENTS.............................................................................................................ii CHAPTER ONE: The Evolution and Organization of Purchasing and

Supplies Management…………………………………………………………………..1 1.1 Introduction……………………………………………………………………………………1 1.2 The Evolution of Purchasing………………………………………………………………...3 1.3 The Role of the Purchasing Department…………………………………………………...5 1.4 The Contribution of Purchasing Department to the Overall Firm’s Performance…..4 1.5 The Relationship between Purchasing Department and other Departments………….7 1.6 Purchasing and Supply Organization Structure…………………………………………11 Review Questions………………………………………………………………………………...18 CHAPTER TWO: Purchasing Procedures…………………………………………...20 1.1 Recognition of the Need……………………………………………………………………..20 2.2 Definitions and Description of the Need……………………………………………….….20 2.3 Transmission of the Need…………………………………………………………………....24 2.4 Receipt and Inspection……………………………………………………………………….25 2.5 Invoice Audit and Completion of the Order……………………………………………….25 2.6 Purchasing and Supply Department Records………………………………………...…..26 2.7 Rush Orders…………………………………………………………………………………...27 2.8 The Small-order Problem……………………………………………………………………27 2.9 Purchasing Fraud…………………………………………………………………………....30 2.10 Purchasing and Information Technology (IT)…………………………………………..31 Review Questions………………………………………………………………………………….38 CHAPTER THREE: Sourcing………………………………………………………...39 1.1 Introduction…………………………………………………………………………………...39 3. 2 Sourcing levels……………………………………………………………………………….39 3.3 Sourcing Considerations…………………………………………………………………….40 3.4 Sourcing Strategies and Tactics and Sourcing Decisions………………………………42 3.5 Decision Process for Make or Buy…………………………………………………………51 3.6 Outsourcing…………………………………………………………………………………...51 3.7 Local Suppliers……………………………………………………………………………….58 3.8 Factors in Deciding Where to Buy…………………………………………………………58 Review Questions…………………………………………………………………………………59 CHAPTER FOUR: Stock and Stock Control………………………………………..61 4.1 Introduction…………………………………………………………………………………..61 4.2 Reasons for...


References: •
Arjan Van Weele (2004), Purchasing and Supply Chain Management, PVT publishers,
Benton W C (2007), Purchasing and Supply Management, Routledge, London

Michael Quayle (2005), Purchasing and Supply Chain Management: Strategies And
Realities, Routledge, London
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