Purchase Management Practice Exam

About Purchase Management
Purchase management is a business discipline that enables companies to manage the activities and relationships that make up the purchasing functions necessary to do business. At its core purchase management is all about saving money, increasing profits and it is an important function for any wholesale, distribution or manufacturing business.

Efficient purchase management provides a prime opportunity for wholesalers to clear bigger profits by controlling costs of the inventory stock needed to run their business. To deliver the greatest profitability for an organisation it is crucial that products and services are purchased at the best price and quality available.

Why is Purchase Management important?
Purchase management is a system that creates customised approval rules providing the ability to hasten approvals and order placement for the timely receipt of inventory stock. Purchase management streamlines the purchasing and inventory control process of an organisation for greater efficiency and lower costs.

Purchasing management helps by
•    Reducing Costs.
•    Diversifying Supply.
•    Fulfilling Business Requirements.
•    Sparking Innovation.
•    Managing Relationships.
•    Spending Wisely.

Who should take the Purchase Management Exam?
•    Purchase or procurement professionals
•    Business owners
•    Entrepreneurs
•    Anyone who wants to assess their purchase or procurement skills
•    Purchase or procurement managers and senior executives
•    Purchase or procurement consultants
•    Professionals working in outsourced companies responsible for purchase or procurement
•    Anyone interested in purchase or procurement
•    Students

Knowledge and Skills required for the Purchase Management

Specific skills are needed to excel in career of purchase management which includes analytical bent of mind and quick learning skills.

Purchase Management Practice Exam Objectives

Purchase Management exam aims to assess in concepts and application of value analysis, vendor management and materials management.

Purchase Management Practice Exam Pre-requisite

There are no prerequisites for the Purchase Management exam.

Purchase Management Certification Course Outline

1. Materials Planning
1.1 Need of Materials Planning
1.2 Factors affecting Materials Planning
1.3 Tools of Materials Planning
1.4 Principles and Procedure for Materials Planning
1.5 Basic concepts of MRP (Material Requirements Planning)
1.6 MRP Processing
1.7 Computer Application to MRP Process
1.8 MRP reports - Database recording and maintenance
1.9 Independent and dependent MRP system

2. Materials Budgeting
2.1 Basic concepts of Materials Budgeting
2.2 Factors affecting Materials Budget
2.3 Materials Budgeting and Accounting
2.4 Waste Management - Surplus and Obsolete
2.5 Damage and Pilferage
2.6 Cost Analysis

3. Material Classification, Standardization and Codification
3.1 Material classification for variety reduction
3.2 Material classification on the basis of Value Analysis
3.3 Basic concepts of codification
3.4 Systems of codification
3.5 Classification by codification
3.6 Objectives and scope of standardization
3.7 Simplification/Variety of reduction
3.8 Levels of standard

4. Stores Management and Warehousing
4.1 Stores Functions and objectives
4.2 Types of Stores – Centralized and decentralized
4.3 Functions of stores
4.4 Stores Layout, Storage Media and Physical Verification
4.5 Factors affecting successful Store-keeping
4.6 Warehouse Management System (WMS)
4.7 Warehouse operating principles
4.8 Strategy for warehousing
4.9 Planning Warehouse distribution
4.10 Warehouse Layout
4.11 Automatic Warehousing
4.12 Schemes of Automatic Warehousing

5. Inventory Management
5.1 Types of Inventory
5.2 Types of Inventory Costs and factors affecting
5.3 Inventory Management Models – Deterministic and Probabilistic Models
5.4 Techniques of Inventory Control
5.5 Inventory Performance Measurement (Ratio Analysis)

6. Purchase Management System
6.1 Objectives of Purchasing
6.2 Functions and responsibilities of Purchase Department
6.3 Methods of Purchasing
6.4 Purchase Department Organization
6.5 JIT Purchasing

7. Vendor Management
7.1 System of Vendor evaluation
7.2 Parameters for evaluation of Vendors Performance
7.3 Social Audit
7.4 Total evaluation – Purchasing Performance, Quantitative Objects etc
7.5 Guidelines for purchase through tender and negotiation tender committee
7.6 Purchase Review

8.  Value Analysis System
8.1 Value Analysis – Procedure and Approach
8.2 Tools for Value Analysis

9.  Negotiation Skills
9.1 Basic approaches for Negotiation
9.2 Strategy and Planning for Negotiation
9.3 Tactics of effective negotiation

10. Quality Control
10.1 Components and characteristics of quality
10.2 Objectives and functions of quality control
10.3 Acceptance sampling – Principles and Practices
10.4 Double and Multiple Sampling
10.5 OC and AOQ Curve

11.  Stock Keeping and Accounting
11.1 Maintaining Database system
11.2 Preparing reports
11.3 Managing Queries

Exam Format and Information
Certification name – Purchase Management Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199