National Institute of Technology Agartala
(An Institute of National Importance) AS-3
Nov 2024
Name: Regd. No.:
………………………............................................................................ ………………….
Course Code: UPE05B21 Time: 2 Hours
Course Name: Production Planning and Control
Note: All Questions are Compulsory. Assignment must be hand-written and answers must be
concise.
1. 1-Mark Questions
(a) Define "vendor rating" in purchasing.
(b) List two responsibilities of the purchasing function.
(c) What is meant by "purchasing research"?
(d) Define "price analysis" in cost reduction.
(e) What is the difference between cost control and cost reduction?
(f) List one material cost reduction technique.
2. 2-Mark Questions
(a) Explain the role of purchasing in new product development.
(b) Describe the importance of vendor certification in ensuring supply reliability.
(c) Explain why material cost reduction is essential in manufacturing industries.
(d) Describe the concept of price analysis and its importance in purchasing decisions.
3. 4-Mark Questions
(a) Discuss how a well-organized purchasing system can contribute to cost reduction. Provide an
example of a purchasing decision that could positively impact cost control.
(b) Compare and contrast cost control with cost reduction, highlighting when each approach is most
suitable in purchasing. Provide examples for each.
4. 8-Mark Question
(a) Analyze a scenario where multiple cost reduction techniques (such as standardization, value analysis,
and supplier negotiations) could be applied to reduce material costs. Design a cost reduction plan that
outlines each step, explaining how it can lead to significant savings without compromising quality.
(b) Evaluate the steps involved in identifying and developing new sources of supply. Propose a strategy
that integrates vendor evaluation, certification, and standardization, and explain how this can improve
cost efficiency and supply reliability.
