Purchasing and Financing 2024

o Supplier 2 (a new player in the market) sells a lesser-known brand at only R5 999-
00 with a one year guarantee and can supply you with 20 units per month for a
R250-00 delivery charge.
o Supplier 3 (a supplier with a reasonable track record) sells the same brand as
supplier 1, with the same guarantee, at 20% less, including delivery, on condition
that you take at least 30 per month.
Design a decision matrix form that provides for the consideration of at least four factors
and complete it to enable you to choose between the three suppliers. (10)
Question 4
You get more and more enquiries about Solar Panels and decide to import Kyocera KC 16T
panels from a Korean company. Decide whether you are going to order once or twice a
month and then calculate your turnover, average stock time, average capital tied up and
storage interest rate using the information below. Remember that Turnover =
Consumption / Ave Stock, (12)
Interest Rate
Annual consumption
Purchasing price
Safety stock
Inventory costs
Lead time
Order costs
9%
2 400 units
R700 per unit
30 units
R55 per unit
6 days
R500
Interest Rate
Question 5
Explain the difference between Fixed Order Quantity Ordering Systems and Cyclical
Ordering Systems with the aid of graphs (12)
24