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The cost of material purchased from each supplier during 2021 was as follows: Supplier A $30,000 Supplier B $100,000 Supplier C $50,000 Required Required Question
The cost of material purchased from each supplier during 2021 was as follows: Supplier A $30,000 Supplier B $100,000 Supplier C $50,000 Required Required Question 3.1 Prepare a detailed suppliers' report showing costs of ownership and su ppliers' performance index (SPI). (15 marks) Your Answer{|nsert rows/columns and expand the space as required): Question 3: Managing Supplier's Performance (33 Marks) Nelson Builders is undertaking an analysis of supplier costs in order to evaluate the relative costs and performance of each supplier. For 2021, they have isolated a range of activities that are consumed by suppliers, identified activity drivers, and estimated the cost per unit of activity driver: Activity Cost per unit of activity driver Order material $110 per order Receive order $85 per delivery Inspect order $145 per delivery Return material to the supplier $105 per return Pay supplier $75 per invoice Dispute invoiced amount $295 per dispute In 2021, the three major suppliers to the company consumed the following number of activities: Activity Supplier A Supplier B Supplier C Order material 120 125 75 Receive order 110 130 50 Inspect order 80 145 45 Return material to the supplier 75 12 32 Pay Supplier 25 150 20 Dispute invoiced amount 5 7 2
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