Syllabus of Paper 2 

Total marks: 100.
Number of questions: 100.
Negative marking: There is no negative marking.

Basic Principles and Practices
Concept and details of Integrated Materials Management System.
Importance and scope of Materials Management.
Supply Chain Management.
Make or buy or Outstanding and Vendor Analysis.
Value Analysis.
Elements of general management including Planning, Organizing, Directing, Coordinating and Controlling.
Business Correspondence.
Application of Computers in Purchasing.

Purchase Management
Purchasing Organizations.
Purchasing Cycle and Contracts/Purchase Orders.
Ethical Concerns in Purchase.
CIL Purchase Manual 2004 and its amendment.
Sourcing Supplier Evaluation.
Purchasing Cycle.
Tendering- Scrutiny of indents, preparation of tender documents, Evaluation of tenders and Award of orders etc.
Economic Ordered Quantity.
Lead Time Analysis.
Legal aspects of purchasing: Indian Contract Act, Sales or Goods Act, Negotiable Instrument Act, Indian Companies Act, Sales Tax Act, Octroi, Indian Patent Law, Arbitration Act, Excise and Customs Act, INCOTERMS, Letter of Credit.
CVC Circulars/guidelines.
Integrity Pact – Standard Operating Procedure.
Competition Commission of India.
E-procurement guidelines, use of Digital signature certificate.
Documentation & Process relating to Imports.

Store and Inventory Control Management
Online Materials Management System.
Standardization and Codification.
Stores function, Types of Stores, Stores Identification System, Receipts, Inspection, Storage Procedure, Preservation Procedure, Safety and Security aspects, Issue System, Disposal of unserviceable scrap including survey off and disposal activity, stock verification and store accounting, store records, legal aspects of store keeping.
Store Accounting.
Materials handling packing and transportation systems.
Inventories- Definition- Classification of Inventories- Merits and Demerits of Inventories.
Need for Inventory, Inventory cost, inventory control measures, (ABC, XYZ Analysis- VED, GOLF, FSN- HML etc.). Determination of economic ordered quantity, Forecasting Techniques, Determination of safety stocks, spare parts Inventory.
Materials Handling Systems and equipments, Economic aspects of Materials handling and Transportation, Comparative Transportation costs, Issues relating to selection of carriers.
Insurance and Responsibilities of the different stake holders.

Computer Awareness and Information Technology
Introduction to Computer Concepts.
The Basic Computer Architecture.
Database Management Systems.
File: Concept of File, File Organization, Techniques, Sequential, File Handling Functions: Sorting, Merging, Updating.
Tabulation of data in Statistical Charts & Graphs.
Introduction to Viruses and Vaccines.
Computer Networks.
Internet & Multimedia.