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SECTION A – MARK SCHEME

Answer A – D

Syllabus Ref:

MARKS Answer

A – D Syllabus

Ref MARKS

Q1 D 1.4 2 Q6 B 4.5 2

Q2 A 1.3 2 Q7 B 3.1 2

Q3 C 1.4 2 Q8 A 1.2 2

Q4 D 2.2 2 Q9 D 4.3 2

Q5 D 3.1 2 Q10 A 4.2 2

Q11: MARK SCHEME

Question aims:

The question aims to test the student's understanding of the characteristics of a good supplier.

Syllabus Reference(s): 2.4

Core answer content is likely to include:

A wide range of answers is expected, for full marks, the answer should follow one of the following explanations:

• Evidence that the supplier wishes to accept the potential order

• The willingness of a supplier to adapt the product or service to the buyer’s requirements

• Evidence that the supplier can devote resources to a potential order

• The speed of response to enquiries

• The flexibility of making arrangements to meet or negotiate.

Alternative appropriate answers will receive credit.

2 x 2.5 marks, up to 5 marks

Total 5 marks

Q12 : MARK SCHEME

Question aims:

To test student understanding of the need for specialist help with supplier appraisal

Syllabus Reference(s): 2.2

Core answer content is likely to include 3 of the following:

A wide range of answers are possible, the following will indicate possible answers:

• Technical situations: (each worth 2.5 marks)

▪ product testing,

▪ chemical analysis,

▪ site inspection,

▪ laboratory detection of contamination,

▪ health and safety

• Ethical standards and audit

• Customer/end user examination and approval of a supplier

• Accountant’s investigation

• Government officials for specific approvals

• Legal opinions regarding contracts or patents/trade marks/intellectual property

Up to 2.5 marks for each valid reason, alternative answers will receive credit

Marks will be awarded for other appropriate answers.

Total 5 marks

Q13 : MARK SCHEME

Question aims:

Test the students understanding of the need for post-tender negotiations.

Syllabus Reference(s): 4.4

Core answer content is likely to include: (among others....)

Where clarification of the methods to be used by the supplier is required

Where further information about the timing or staging of the contract is required

Where the bid contains indications that the specification cannot be met as required

Where the bid contains indications that the terms and conditions cannot be agreed as required

Where alternative proposals are presented

Up to 2.5 marks for each situation explained, alternative answers will receive credit.

Additional relevant content might also include: (This content is likely to result in:)

Total 5 marks

Q14 : MARK SCHEME

Question aims:

Test student understanding of practical application of electronic systems.

Syllabus Reference(s): 3.3

Core answer content is likely to include:

• Time saved when information readily available

• Consistent information, less confusion over handwritten files

• Errors reduced as computer files easier to read than handwriting

• Network feature allows staff to be up to date with all company information without duplicating effort

• Easy to compare supplier performance

Up to 2.5 marks for each benefit – explanations required for full marks, alternative appropriate answers will receive credit

Total 5 marks

Q15 : MARK SCHEME

Question aims:

To test student understanding of the appraisal process in operational terms

Syllabus Reference(s): 2.3

Core answer content is likely to include:

• Incomplete assembly

• Late delivery to customer

• Loss of good relationship

• Missed opportunity to impress customer

• Reduced or lost sales

• Current and future business at risk

• Reduced profitability

• Cash flow problems

• Missed production time slots

1 mark awarded for each potential problem identified, alternative appropriate answers will gain credit.

Total 5 marks

Q16(a) : MARK SCHEME

Question aims:

Test understanding of supplier databases.

Syllabus Reference(s): 3.2

Core answer content is likely to include:

• Supplier price information is likely to be regarded as confidential to the buying organisation.

• Supplier price information is likely to be regarded as confidential by the supplier.

Up to 2 marks for directly commenting on either of the above, or appropriate alternative explanations.

Total 2 marks

Q16(b) : MARK SCHEME

Question aims:

• Test understanding of confidential information and information sharing.

Syllabus Reference(s): 3.5

Core answer content is likely to include:

• Supplier names and addresses/contact details

• Supplier performance information – delivery quality, after sales service

• Financial results that are available publicly

• Types of products or services required

(note to students in practice, the suppliers should be advised that the information is being shared with other businesses)

1 mark for each of the above, or any other appropriate answer.

Total 3 marks

Q17(a) : MARK SCHEME

Question aims:

To test understanding of the ‘right supplier’ in different situations.

Syllabus Reference(s): 1.1

Core answer content is likely to include:

A wide range of answers is possible. Here are some expected answers:

• The need to ensure long term availability and support

• The need for unique product or service, which is only likely if sole supplier status is offered

• Customer demand or specification (where the buying organisation must mirror a long term customer contract)

• Where a fixed price is available and this is viewed as desirable

• Where significant capital investment is expected by the nature of the contract – short term commitment will mean cost recovery creating higher prices

Up to 2 marks for each appropriate example, alternative answers will receive credit

Total 6 marks

Q17(b) : MARK SCHEME

Question aims:

To test understanding of the ‘right supplier’ in different situations.

Syllabus Reference(s): 1.1

Core answer content is likely to include:

A wide range of answers is possible. Here are some expected answers:

• Initial appraisal is no certainty that the supplier capability/commitment will continue

• Future expectations or requirements for products and services are uncertain

• Future cost/price relationships are uncertain

• Future competition is uncertain

• The supplier may not perform as originally expected

2 marks for each appropriate disadvantage, alternative answers will receive credit

Total 4 marks

Q17(c) : MARK SCHEME

Question aims:

To test understanding of the appropriate supplier appraisal criteria.

Syllabus Reference(s): 2.1

Core answer content is likely to include:

A range of answers are appropriate, these are likely to feature:

• Two criteria based around technical/financial/commercial/environmental would be appropriate.

• Evidence of longer term commitment to the industry, product or service (capital investment, strategy, values)

• Financial structure suggesting longer term prospects are likely to be realistic

• Willingness to work collaboratively on problems and improvements

• Creation of processes that allow greater trust and flexibility

• Creation of an appropriate contract with reviews, service level indicators and/or key performance indicators

2.5 marks for each appropriate criterion, alternative answers will receive credit

Total 5 marks

Q18(a) : MARK SCHEME

Question aims:

To test understanding of supplier prices and quotations for more complex purchases.

Syllabus Reference(s): 4.5

Core answer content is likely to include:

for 5

65625

750

500

175

67050

5 marks for the correct figure: a breakdown is not required but 1 mark for each correct calculation in the event of a total sum error. If one error made, then total will also be marked as incorrect.

Total 5 marks

Q18(b) : MARK SCHEME

Question aims:

To test understanding of supplier prices and quotations for more complex purchases.

Syllabus Reference(s): 4.5

Core answer content is likely to include:

for 5, over 3 years

7500

750

for 5 machines

625

1375

10250

5 marks for the correct figure: a breakdown is not required but 1 mark for each correct calculation in the event of a total sum error. If one error made, then total will also be marked as incorrect.

Total 5 marks

Q18(c) : MARK SCHEME

Question aims:

To test understanding of supplier appraisal criteria in relation to a case study.

Syllabus Reference(s): 2.3

Core answer content is likely to include:

A wide range of answers is possible, here are some appropriate examples:

• The anticipated number of years the machines will last

• Availability of spare parts for the lifetime of the machines

• Time taken for servicing and spare parts/service report

• Financial stability : will the supplier be around for long term support?

• Technical issues : is the technology reliable and not likely to be obsolete during the lifetime of the machines?

• Health and safety considerations, power supply issues

• Supplier ‘reference sites’: who has previously bought the machines and what is their experience?

2.5 marks awarded for each appropriate factor, for full marks the factor should be directly relate to equipment/machinery.

Alternative appropriate answers will receive credit.

Total 5 marks

Q19(a) : MARK SCHEME

Question aims:

To test candidates’ understanding of capability appraisal

Syllabus Reference(s): 2.3

Core answer content is likely to include:

• Supplier X is more likely to understand the product

• Supplier X has more direct control over availability and lead time

• Harvest Homes can expect full responsibility for product quality from the supplier

• Harvest Homes might expect better service as there is a direct relationship with a manufacturer

• Harvest homes may be able to negotiate better prices direct with a manufacturer rather than through a wholesaler

Up to 2 marks for each answer – alternative appropriate answers will gain credit

Total 6 marks

Q19(b) : MARK SCHEME

Question aims:

Test understanding of how a supplier’s capability can contribute to supplier choice.

Syllabus Reference(s): 2.3

Core answer content is likely to include:

(ISO9001 is a quality assurance standard that requires procedures that are audited both externally and internally – the standard also requires a commitment to improvement of quality)

• Harvest Homes is likely to view accreditation as evidence of established routines and procedures that are more likely to result in fewer errors and greater reliability of supplier Y.

• Supplier Y does not manufacture products itself – so the extent of quality assurance is limited

• ISO9001 does not guarantee good quality, so other assessments are also required

• Supplier X does not quote ISO9001 or other quality assurance in place – possibly favouring supplier Y

One mark is awarded for an answer showing an understanding of ISO9001 (quality assurance and/or reliability, but not ‘better quality’)

Up to two marks for directly commenting on the impact for Harvest Homes

Total 4 marks

Q19(c) : MARK SCHEME

Question aims:

To test candidates’ understanding of capability appraisal

Syllabus Reference(s): 2.1

Core answer content is likely to include:

• Capability of supplier Y to meet the required volume and timing (‘smaller contracts’ and ‘all items are subject to availability’ comments).

• Assessments for capability and methods of supplier assessment used by supplier Y (‘does not manufacture any items itself – all items are sourced following customer order and supplied either direct from manufacturers or through a warehouse operated for supplier Y by a specialist company).

• Financial capability, ethical issues, Corporate Social Responsibility, environmental performance (no comments made)

Up to 2 marks for each answer – alternative appropriate answers will gain credit

Total 4 marks

Q19(d) : MARK SCHEME

Question aims:

To test candidates’ understanding of capability appraisal

Syllabus Reference(s): 1.4

Core answer content is likely to include:

• Cost could be reduced by picking lower cost items from each supplier

• The ‘best compromise’ between cost and quality might be possible by splitting the contract

• Having two potential suppliers provides a reduced risk of supplier failure or non-performance

• Using two suppliers encourages future competition for HH’s business

Up to 3 marks for each answer – alternative appropriate answers will gain credit

Total 6 marks