Fig. 1 shows part of the procurement process used by a commercial printing business before it orders paper for a large catalogue. The business uses expensiv...
Question 1 Report
Fig. 1 shows part of the procurement process used by a commercial printing business before it orders paper for a large catalogue. The business uses expensive colour printers, so poor paper quality can cause jams and wasted ink. Its manager wants to compare suppliers in a systematic way before agreeing a new contract.
(a) Which stage in Fig. 1 should occur before the business places an order? [1]
(b) Explain one reason why paper specifications should be set before quotations are requested. [2]
(c) Identify one paper specification the printing business could give suppliers. [1]
(d) Which one of the following is most useful when assessing suppliers: previous delivery records, the manager's car, a restaurant menu, or staff uniforms? [1]
(e) Calculate the total paper cost if the business orders 2400 packs at $7.50 per pack. [2]
(f) When should the manager contact a supplier about a late delivery? [1]
Answer Details
(a) Before placing an order, the business must first set the paper specification, request supplier quotations or assess suppliers. Each is a stage that occurs before the order is placed. [1]
(b) Specifications must be set first so that all suppliers receive the same clear requirements. [1] This allows valid comparisons of price and quality and reduces the risk of ordering unsuitable paper that causes printer jams or wasted ink. [1]
(c) One suitable paper specification is paper weight. Paper size, finish, colour, required quantity and recycled content are also acceptable. [1]
(d) Previous delivery records are most useful because they provide evidence of whether a supplier is reliable. [1]
(e)
\[2400\times\$7.50=\$18\,000\]
The total paper cost is \$18 000. [2]
(f) The manager should contact the supplier as soon as the delivery is overdue, or as soon as a delay is reported. Early contact helps the business arrange an alternative or revise production plans. [1]
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