EXAM EXEMPLAR QUESTIONS
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1 Level 3 Advanced Certificate in Procurement and Supply AC3 - Procurement and supply workflow EXAM EXEMPLAR QUESTIONS WORKBOOK QUESTIONS Page 1 of 13 QUALIFICATIONS 2013
2 QUESTIONS Q1 M. Stevens Ltd Purchase Requisition Requisition Reference All sections must be completed WS Requisition Date 25th April 2016 Quantity 8 Total Requisition Value User Department: Description / Specification/ Part Number (Please provide full details) Best quality Laptop Computers and spare parts. To be confirmed Budget Code Delivery Date Required Delivery address / point Prepared by: Authorised by: Total Cost Approx. 500 dollars Information Technology Department - Production Department Marketing Department Very Urgent To the personal office of Mrs M. Stevens M. Stevens This is not a purchase order Fig 1.1 Purchase requisition Page 2 of 13
3 (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. (10 marks) Area (1 mark each) Explanation (1 mark each) Page 3 of 13
4 (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. (3 marks) (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. (3 marks) Page 4 of 13
5 (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. (9 marks) SLA area (1 mark each) Reason it is important for the buyer (1 mark each) Page 5 of 13
6 Q2 Fig 2.1 Purchase order The tax rate is correct for this purchase order Page 6 of 13
7 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. (a) 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 Suggest SEVEN additional pieces of information that are currently missing from the purchase order. (21 marks) Additional piece of information (1 mark each) Potential consequence for buyer if this is omitted from the purchase order (2 marks each) Page 7 of 13
8 (b) Explain TWO reasons why an order acknowledgement form has been provided by Easton House Farms Ltd. (4 marks) Page 8 of 13
9 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). (5 marks) Item (i) (ii) (iii) (iv) (v) Statement This is a qualitative method It uses previous history to make predictions It is a subjective approach to forecasting based on a systematic approach to reaching agreement among a group of forecasters The forecasters do not initially communicate with each other A single report is signed-off following initial agreement True (T)/ false (F) Fig 3.2 Statement This is a quantitative method It uses the judgement of experts to make predictions It is an objective approach to forecasting using rules and formulas in agreement among a group of forecasters The forecasters are in constant collaboration with each other The various reports are adjusted until opinion is reached True (T)/ false (F) (b) Calculate the values for (i) to (v) in Fig 3.3. (5 marks) Cost of product ( ) Selling price ( ) Mark-up (%) Profit margin (%) (i) (ii) 450 (iii) 20 (iv) (v) Fig 3.3 Page 9 of 13
10 (c) Complete the labels (i) to (iv) for Fig Y Limited - breakeven analysis. (5 marks) (c) (a) Fig 3.4 Y Limited - breakeven analysis (e) (b) (d) Page 10 of 13
11 (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). (5 marks) Item Statement True (T)/ false (F) Statement True (T)/ false (F) (e) (i) (ii) (iii) (iv) (v) It is not an exact science Cost estimates are objective It enables true budgeting over the life of the asset It promotes cross-functional communication on cost and asset management It is based on production output Fig 3.5 It is an exact science Cost estimates are subjective It enables realistic budgeting over the life of the asset The finance department determine the forecasted budget for the whole life costing It is based on sales forecasts Classify the following FIVE headings into the correct balance sheet category by writing each under the appropriate heading in Fig 3.6. (5 marks) (i) (ii) (iii) (iv) (v) Retained profits 5% secured loan Stock Trade creditors Debtors Current assets Long-term liabilities Fig 3.6 Balance sheet categories Current liabilities Capial and reserves Page 11 of 13
12 Q4 (a) In your role as an administrator, in a purchasing and supply department, write an 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. (4 marks) Q4 (b) (b) THREE Fig 4.1 Describe THREE reasons the communication of these new processes to suppliers may not be effective. (6 marks) Page 12 of 13
13 (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? (d) Identify the correct statements for each heading by selecting the correct index letter A or B in Fig 4.2 (5 marks) 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 Fig 4.2 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. (10 marks) Customer complaint 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 Feature of e-catalogue (1 mark each) Explanation of how feature will solve customer s complaint (1 mark each) Fig 4.3 Page 13 of 13
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