SC0007 – Category Management in Purchasing

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Master of Business Administration- MBA Semester 4

“Supply Chain Management” Specialization

SC0007 – Category Management in Purchasing- 4 Credits

(Book ID: B1662)

Assignment (60 Marks)

Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. Each Question carries 10 marks 6 X 10=60

Q1. Write a note on product category lifecycle.

Answer. Product life cycle is a business analysis that attempts to identify a set of common stages in the life of commercial products, for example, introduction, promotion, growth, maturity and decline. The Product Life Cycle (PLC) is used to map the lifespan of a product. There are generally four stages in the life of a product. These four stages are the Introduction stage, the Growth stage, the Maturity stage and the Decline stage. The following graph illustrates the four stages of the PLC:

Q2. Describe the steps implemented in communication planning.

Answer. A strategic communications plan is a written document that lists your organization's specific goals and objectives. It requires a concerted effort among your staff, board members, and others to think strategically about where you want your organization to go and the communications activities (public service announcements, press releases

Q3. Write a note on contingency planning.

Answer. A contingency plan is a plan devised for an outcome other than in the usual (expected) plan.It is often used for risk management when an exceptional risk that, though unlikely, would have catastrophic consequences. Contingency plans are often devised by governments or businesses. For example, suppose many employees of a company are traveling together on an aircraft which crashes, killing all aboard. The company could be severely strained or even ruined by such a loss. Accordingly, many companies have procedures to follow

Q4. Discuss e-auctions in detail.

Answer. E-Auctions are negotiations conducted via an online platform. Suppliers get the possibility of improving their proposals based on market feedback (e.g. rank in negotiation) and are considered to be the most transparent way of conducting negotiations.

E-Auctions include both price and non-price (service level, quality, etc.) parameters to ensure the result of the auction reflect the overall best total value for APMM.

Benefits of participating in an e-Auction

1. Transparent process.

Q5. Explain the creation of programme plan.

Answer. The first step in any systematic attempt to promote rural development is to prepare useful programmes based on people's need. The development of such programmes, which harmonize with the local needs as the people see them & with the national interests with which the country as a whole is concerned, is an important responsibility of extension personnel at all levels-national, state, district, block & village.

Programme planning is the process of making decisions about the direction & intensity of extension-education efforts of extension-service to bring about

Q6. Explain how price cost analysis is performed in category management.

Answer. Category management is a retailing and purchasing concept in which the range of products purchased by a business organization or sold by a retailer is broken down into discrete groups of similar or related products; these groups are known as product categories (examples of grocery categories might be: tinned fish, washing detergent, toothpastes). It is a systematic, disciplined approach to managing a product category as a strategic business unit. Increasingly, organizations are taking a category approach to spend management to drive

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