DEC 13

1. Identify the main evaluation criteria you would use in order to select a supplier for your
organization. [20]

Your Vendor Selection Criteria
Selecting a vendor is probably one of the most nerve wracking but crucial activities a business must
undertake. Your vendors will be delivering your direct purchases those that you use to produce
the products you sell and your indirect purchases those that keep your business running
effectively.
When you are selecting a potential vendor, you are selecting a partner in your business and you will
trust them to work with you in a professional and profitable manner. It is important that you chose
a company that can supply your requirements now and for the near future.

12 vendor selection criteria
1. Years in business
You need to know that the company is established and ready to service your requirements.

2. Ability to constantly supply products or services.
You need your products and services on a regular basis. A vendor that has supply issues will
affect your ability to supply your customers and this is an important factor when selecting a
vendor.

3. Ability to supply all the products required or the complete solution.
This is particularly necessary when you are looking for a one of business solution such as a
new computer system. You may also be attempting to rationalize the number of vendors
you are dealing with or wish to purchase a product line from one vendor only.It would be
particularly difficult to obtain good terms if you need to purchase just a small range from
another supplier, because your chosen vendor was unable to supply the complete range.


4. Flexibility to allow changes in orders or product lines.
All businesses need to change their orders sometimes if your vendor heavily penalizes you
for doing this perhaps they are not the one for you and you need to move on with selecting
a vendor.

5. Substantial catalogue of products or range of services.
This not only indicates an established vendor of size, but also means that you have
flexibility in your ordering. As your business grows, you can keep with the same vendor. It
also means that you are able to minimize the number of vendors you are dealing with.

6. Appropriate supply of internal experts that can answer questions you may have.
Again, this is very pertinent if you are purchasing a high value service, but we all need
experts at some time or other.

7. Testimonials and references.
These are valuable if you can check that the vendor is reliable and as they purport to be.


8. Sustainability and financial stability.
The last thing you want is to have to change your vendors very quickly because one of them
has gone out of business.

9. Prices.
Discounts on the price list are always negotiable, but they are an important part of selecting
a vendor.


10. Delivery times.
You need to know that deliveries can be made where and when you want them. The number
of deliveries per week or month may also be important to you.

11. Terms of business.
Payment terms are particularly important as they impact upon your cash flow.
12. Customer service.
Always an important part of any relationship. What is the availability of ordering and help
staff? Are they cordial, professional and easy to contact. No one likes hanging on the end of
the phone being told by a machine, your call is important to us !





2. Explain what you understand by the following terms:
a) Safety stock
b) Inventory carrying costs
c) Inventory turnover [20]

3. Describe the relative operating characteristics of the different transport modes. [20]

4. Explain the factors you would consider when selecting global supply chain strategies. [20]

5. You have been asked by one of your clients to explain THREE delivery patterns that can be used
for the flow of
materials from supplier to customer. What information would you include in your explanations?
[20]

6. Highlight the advantages and limitations of the following types of production layout:
a) Functional production layout
b) Fixed position production layout
c) Line-shaped production layout [20]

7. Write notes on THREE of the following:
a) Delivery notice
b) Customer order
c) Moving average
d) Exponential smoothing [20]

8. Distinguish between lean and agile supply chain strategies and identify the factors you would
take into account
when selecting the most suitable option.



















DEC 2012
1. Summarise the likely conflicts between companies in a supply chain and explain how these
conflicts can be
eliminated. [20]

2. What do you understand by the following terms:
a) Make to order (MTO)
b) Make to stock (MTS)
c) Reverse logistics [20]

3. Discuss the factors to be considered in the selection of a logistics service provider. [20]

4. Distinguish between outsourcing and offshoring and summarise the benefits and risks
associated with
outsourcing distribution services. [20]

5. Write notes on THREE of the following:
a) Total logistics costs
b) Centralised warehouse structure
c) Inventory turnover rate
d) Inventory carrying costs [20]

6. Discuss the advantages and limitations of combining two or more traffic modes. [20]

7. Explain the methods that can be considered in order to improve the sustainability of logistics and
supply
chains. [20]

8. What are the main evaluation criteria you would use in order to select a potential supplier as part
of your
companys procurement process?

SEP 13
1. The growth of logistics has had a direct effect on the development of world economies.
Comment on this
statement and use examples to support your recommendations. [20]

2. Identify the differences between lean and agile supply chain strategies and identify the factors
you would
consider in selecting the most suitable option. [20]

3. You have been asked to explain the following terms to one of your clients:
a) The material supply system
b) Logistics system and supply chain
c) Logistics strategy
What information would you include in your explanations? [20]

4. Why do companies seek to outsource certain activities, and what are the most common causes of
failure in
outsourcing relationships? [20]

5. Discuss the major factors that will influence the choice of transport mode in the supply chain.
[20]

6. Assess the extent to which RFID technology facilitates the management of information in
contemporary supply
chains. [20]

7. Write notes on THREE of the following:
a) Environmental impact assessment
b) Reverse logistics
c) Inventory turnover
d) Inventory carrying costs [20]

8. Discuss the most popular delivery patterns that can be used by suppliers in highly competitive
markets.

JUNE 12
1. Distinguish between lean and agile supply chain strategies and identify the factors you would
consider in selecting the
most suitable option. [20]

2. Explain what you understand by the following delivery patterns:
a) Batch delivery to stock
b) Direct delivery to production
c) Delivery through logistics centre [20]

3. One of your clients has asked you to prepare a report on the main advantages and limitations of
THREE freight
transport modes. What information would you include in your report? [20]

4. Why do organisations try to outsource certain activities, and what are in your opinion the most
common causes of
failure in outsourcing relationships? [20]

5. Identify and explain THREE ways that can be considered in order to improve the sustainability of
logistics and supply
chain systems. [20]

6. What are the main evaluation criteria you will use in order to select a potential supplier for your
company? [20]

7. Write notes on THREE of the following:
a) RFID technology
b) Make to order
c) Safety stock
d) Inventory carrying costs [20]

8. Explain the factors you would consider when selecting global supply chain strategies.

SEP 2012
1. Distinguish between lean and agile supply chain strategies and identify the factors that you
would consider in selecting
the most suitable option. [20]

2. Explain what you understand by the following terms:
a) Production layout
b) Process-oriented layout
c) Product-oriented layout [20]

3. Define sustainable logistics and discuss THREE ways that management can consider in order to
improve the
sustainability of logistics and supply chain systems. [20]

4. Identify the benefits of outsourcing certain activities and explain the causes of failure in
outsourcing
relationships. [20]

5. As an independent consultant you have been asked by one of your clients to advise on the
logistics costs attributed to
logistics activities. What information would you provide to your client? [20]

6. Discuss the evaluation criteria you would use in order to select a logistics service provider. [20]

7. Write notes on THREE of the following:
a) Offshoring
b) Economic order quantity
c) Safety stock
d) Inventory turnover rate [20]

8. Describe the costs and relative operating characteristics of the different transport modes. [20]

















MARCH 14
1. Using the example of a large supply company explain the following definitions:
a) Material flow
b) Information flow
c) Distribution
d) Network and capacity planning
e) Supply chain management



JUNE 13
1. Discuss the economic factors that influence the choice of transport mode in the supply chain. [20]

2. Explain what you understand by the following terms:
a) Total logistics costs
b) Route planning
c) Breakpoint distribution [20]

3. Identify the criteria you would use in order to select a Logistics Service Provider (LSP) for your
company. [20]

4. Summarise the reasons companies seek to outsource certain activities, and discuss the most
common causes of
failure in outsourcing relationships. [20]

5. Write notes on THREE of the following:
a) Make to stock
b) Make to order
c) Inventory turnover
d) Inventory carrying costs [20]

6. As an independent consultant you have been asked to prepare a report for one of your clients
explaining the
following topics:
a) Lean supply chain
b) Agile supply chain
c) Reverse logistics
What information would you include in your explanations? [20]

7. Explain THREE methods that can be considered in order to improve the sustainability of logistics
and supply
chains. [20]

8. Identify the likely conflicts between companies in a supply chain and suggest ways to eliminate
or reduce these
conflicts.


MARCH 13
1. The growth of logistics has had a direct effect on the development of world economies. Discuss
this statement
and provide examples to support your recommendations. [20]

2. Explain what you understand by the following terms:
a) Logistics strategy
b) Route planning
c) Breakpoint distribution [20]

3. Advise one of your clients on the factors to be considered in selecting a Logistics Service Provider
(LSP). [20]

4. Summarise the main advantages and limitations you would associate with outsourcing certain
activities. [20]

5. Write notes on THREE of the following:
a) Economic Order Quantity ( EOQ)
b) Make to Order (MTO)
c) Inventory turnover
d) Centralised warehouse [20]

6. Discuss the economic factors that influence the choice of transport modes in the supply chain.
[20]

7. Explain THREE methods that can be considered in order to improve the sustainability of logistics
and supply
chains. [20]

8. Discuss the THREE delivery patterns that can be used by supplier companies and provide
examples to support
your recommendations.


INSTITUTE OF COMMERCIAL MANAGE