Reference no: EM132347507

Procurement and supply workflow

M. Stevens Ltd	Purchase Requisition
All sections must be completed
Requisition Reference	WS278-342
Requisition Date	25th April 2016
Quantity	Description / Specification/ Part Number   (Please provide full details)	Total Cost
8	Best quality Laptop Computers and spare parts.	Approx. 500 dollars
Total Requisition Value	To be confirmed
User Department:	Information Technology Department - Produc- tion Department - Marketing Department
Budget Code	249746-12
Delivery Date Required	Very Urgent
Delivery address / point	To the personal office of Mrs M. Stevens
Prepared by:	M. Stevens
Authorised by:
This is not a purchase order

 Fig 1.1 Purchase requisition

Q1 (a) The purchase requisition shown in Fig 1.1 has been received recently.

Suggest and explain FIVE areas that may require further investigation or challenge before the purchase requisition document can be processed and considered for purchasing.

Q1 (b) The purchase requisition shown in Fig 1.1 has been received recently.

Suggest THREE items that could be included in a conformance specification for these laptop computers.

Q1 (c) The purchase requisition shown in Fig 1.1 has been received recently.

Suggest THREE items that could be included in a performance specification for these laptop computers.

Q1 (d) The purchase requisition shown in Fig 1.1 has been received recently.

Outline THREE areas that could be included in a related service level agreement (SLA) with the laptop supplier and explain why they are important for the buyer.

Fig 2.1 Purchase order

The tax rate is correct for this purchase order

The tasks that follow use the purchase order prepared by the buyer working for Easton House Farms Ltd (shown in Fig 2.1). The purchase order is yet to be sent to the supplier.

Items required are:

250 kilos of Soil Treatment, product code 6C-34256, unit price $16.50 per 10 kilo pack

40 litres of Concrete Cleaner, product code 4C-12798, unit price $4.50 per 1 litre pack

17 metres Reinforced Tube, product code 1C-36985, unit price $3.50 per metre

Q2 (a) Suggest SEVEN additional pieces of information that are currently missing from the purchase order and explain why each is important for the buyer to specify.

Q2 (b) Explain TWO reasons why an ‘order acknowledgement’ form has been provided by Easton House Farms Ltd.

Q3 (a) Complete Fig 3.2 to identify whether each of the statements that describe the Delphi forecasting technique are true (T) or false (F).

Item	Statement	True (T)/ false (F)		Statement	True (T)/ false (F)
(i)	This is a qualitative method		Or	This is a quantitative method
(ii)	It uses previous history to make predictions		Or	It uses the judgement of experts to make predictions
(iii)	It is a subjective approach to forecasting based on a systematic approach to reaching agreement among a group of forecasters		Or	It is an objective approach to forecasting using rules and formulas in agreement among a group of forecasters
(iv)	The forecasters do not initially communicate with each other		Or	The forecasters are in constant collaboration with each other
(v)	A single report is signed-off following initial agreement		Or	The various reports are adjusted until opinion is reached

Q3 (b) Calculate the values for (i) to (v) in Fig 3.3.

Cost of product (£)	Selling price (£)	Mark-up (%)	Profit margin (%)
170	200	(i)	(ii)
450	(iii)	20	(iv)
(v)	100	33	25

Q3 (c) Complete the labels (i) to (iv) for Fig 3.4 – Y Limited - breakeven analysis.

Q3 (d) From Fig 3.4 complete Fig 3.5 to identify whether each of the statements that describe whole life costing are true (T) or false (F).

Item	Statement	True (T)/ false (F)		Statement	True (T)/ false (F)
(i)	It is not an exact science		Or	It is an exact science
(ii)	Cost estimates are objective		Or	Cost estimates are subjective
(iii)	It enables true budgeting over the life of the asset		Or	It enables realistic budgeting over the life of the asset
(iv)	It promotes cross-functional communication on cost and asset management		Or	The finance department determine the forecasted budget for the whole life costing
(v)	It is based on production output		Or	It is based on sales forecasts

Q3 (e) Classify the following FIVE headings into the correct balance sheet category by writing each under the appropriate heading in Fig 3.6.

(i) Retained profits

(ii) 5% secured loan

(iii) Stock

(iv) Trade creditors

(v) Debtors

Q4 (a) In your role as an administrator, in a purchasing and supply department, write an email using the following template Fig 4.1 to inform the preferred supplier list that there will be changes to current purchasing procedures, effective within one month.

Q4 (b) Describe THREE reasons the communication of these new processes to suppliers may not be effective.

Q4 (c) You are preparing for a presentation to the department on customer service using the following headings:

A = What is the value to the organisation in delivering good customer service?

B = How can the organisation achieve good customer service?

Identify the correct statements for each heading by selecting the correct index letter A or B in

Fig 4.2

Tick box A or box B as appropriate:	A	B
EXAMPLE: It helps gather feedback on customer experiences	3
Staff training and development on understanding customer needs
Job satisfaction will increase amongst staff
Enhances the credibility of the organisation's brand
Methods for gathering feedback on customer experiences need to be implemented
It is a mechanism for retaining customers

Q4 (d) In the following table Fig 4.3 identify a feature of an e-catalogue and explain how it will solve the customer complaint about using the organisation’s paper catalogue.

Customer complaint	Feature of e-catalogue (1 mark each)	Explanation of how feature will solve customer's complaint (1 mark each)
The products took too long to find in the catalogue
The products did not match the catalogue description
It was not possible to compare products easily
The ordering process was time consuming
There was no information on the availability of products