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Ms-56 June, 2011 Materials Management

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June, 2011

Ms-56 : Materials Management

1.  (a) Material Flow and Information Flows are equally important in the materials flow process. Why ?

(b) How can an organization achieve competitive advantage using information as a key driver in the organization ?

2.  (a) Why is "approved list of vendors" approach is not a suitable purchase policy in certain cases ? Explain.

(b) How is the performance of purchasing function dependent on supplier development ? Illustrate.

3.  (a) Dependent demand inventory items do not need to be forecast. Why ? Explain.

(b) How does Just-In Time (JIT) approach differ from Manufacturing Resources Planning (MRP II) ?

4.  (a) What are the cost elements in ordering costs, carrying costs and shortage costs ?

(b) CONWIP is considered applicable to production environment characterized by longer set - ups and fluctuating demand. Why ?

5.  (a) What do you understand by the term codification ? What type of information should be built into a code ?

(b) Discuss the incoming material receiving procedures and systems.

6.  (a) What does it mean when we say a firm has organized according to the materials management concept ?

(b) Explain the SCOR framework for performance appraisal and discuss how is it useful in material management ? 

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