Purchasing and Financing 2024

STEP 13:
STEP 14:
STEP 15:
STEP 16:
Check the “hot list” (list of materials that are urgently needed).
Check the invoice for calculations and content.
Prepare the receiving report.
Send copies to the accounting department, inventory control and the
purchasing department.
12. FORMATIVE ASSESSMENT
CASE STUDY
You decided to capitalise on the African Energy Crises by importing and reselling 4
different Diesel Generator Sets at the following prices:
Item 001 110 KVA John Deer Sound Attenuated Set R 236 000-00
Item 002 110 KVA Perkins Super Sound Attenuated Set R 206 000-00
Item 003 130 KVA John Deer Open Set R 235 000-00
Item 004 130 KVA John Deer Sound Attenuated Set R 250 000-00
The following information was obtained from the warehouse stock card for the previous
month.
Item Starting Stock Received from End Stock
Supplier 12/5
001 5 3 0
002 5 3 4
003 5 3 7
004 5 3 2
Question 1
Do an ABC analyses on your product range and make at least two operational decisions
based on your findings (10)
Question 2
What leverage effect would it have on the 110 KVA John Deer if you were able to
negotiate a price reduction of 15% on it?
You currently get them for R180 000-00 each, you pay your salesmen R15 000-00
commission on each set sold and your other costs amount to about R8 000 per set. (6)
Question 3
You decide to expand your product range to include uninterrupted power supplies and are
especially interested in 1400VA 24V Home UPS Inverter Combinations. Initial market
research indicates that you can expect to sell about 25 of these units per month.
o Supplier 1 (a well-known supplier with an excellent reputation) sells a well known
brand at R7 999-00 with a two year guarantee and can supply up to 50 units per
month free of delivery charges.
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