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(b) With a line sketch, describe the (b) Explain the following terms : (10)
organisation structure of a purchasing
(i) Learning curve.
department of a medium scale industry.
Also, discuss the functions of different staff. (ii) Speculative buying.
(10) 5. (a) Explain the following types of discounts
2. (a) What is right quality ? Discuss the different while making industrial purchase
activities : (10)
methods of prescribing the right quality.
(10) (i) Cash discounts.
(b) What is the need for evaluation of the (ii) Trade discounts.
right source ? With an industrial example,
(iii) Quantity discounts.
explain weight point method. (10)
(b) ABC company plans to sell an article at the
3. (a) Discuss the different methods of tendering local market. The articles are purchased
process. Also, compare and contrast them. at Rs. 5 on the condition that all unsold
(10) articles shall be returned. The rent for
the space is Rs. 2,000. The articles will
(b) Explain the principles of better purchasing
be sold at Rs. 9. Determine the number
management. Also, explain the terms
of articles which must be sold
‘visible and invisible costs’ associated in
purchase activities. (10) (i) To break - even.
4. (a) What is ‘value analysis’ ? - Explain the (ii) To earn Rs. 400 as profit.
different steps involved in Value Analysis. (iii) If the company sells 750
(10) articles, calculate margin of
safety and profit. (10)
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8. Explain the following aspects by q uoting (b) The purchase activity details along with
industrial applications : (10 + 10) time estimates and precedence
relationships are given below : (10)
(i) Import of machinery.
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