Prepared by:

Sairrah Joy B. Waga

Purchasing Manager

PURCHASING MANAGER

1. Observation of a NEW Supplier

Pick A Boo
Supplier Observation
For the Month of November
Supplier Selling Price (₱) Projected Cost (₱) Variance
Direct Materials
Ink 1398.00 1,278.00
Photoline 73.27%2
Photo (108 pages) 3500.00 (600 pages)1
768.00
Photo Standee Lazada
(500 pcs)3 125.00 (100 pieces) 122.88%4
Factory Overhead
Transportation 1,980.00 1,600.00 123.75%
1 – 3500/600=5.83x108=630.00 (108 pages)
2 – Variance = 1398.00/(1278.00+630.00)*100
3 – Includes 218.00 shipping fee, actual amount of photo standee is 550.00 (500 pcs.)
4 – Variance = ((768.00/5)/125.00)*100

2. Evaluation
a. Problems Encountered
- The first supplier of ink and photo paper run out of stock.
- No available on-call vehicle.
b. Causes of the Problem
- We only buy ink and photo paper prior to an event.
- We only get vehicle on the day of the event and we did not look for any
contact for driver before.
c. Proposed Solution of the problem
- Look for other available supplier and consider stocking some of this supply.
- Look for an on-call vehicle before the day of the event.
 Prepared by:
Sairrah Joy B. Waga
Purchasing Manager

Ink and Photo Paper

Photoline
Limketkai Mall
Canon Selphy Ink and Photopaper ……. 1398.00
November 16, 2018

* We lost the receipt, but we hope to find it.

Photo Standee
 Prepared by:
Sairrah Joy B. Waga
Purchasing Manager

Transportation

Date Description Mode Amount

- Patag to De Luxe Hotel Jeep 300.00

De Luxe Hotel to Patag Jeep 250.00

- Patag to De Luxe Hotel Jeep 250.00

De Luxe Hotel to Patag Jeep 250.00

November 16, Patag to Vic’s Beach Resort (Bayabas) Taxi 150.00

2018
Vic’s Beach Resort to Corrales1 Taxi 200.00

November 24, Corrales to Seda Hotel Taxi 90.00

2018
Seda Hotel to Corrales Taxi 90.00

November 30, Corrales to XU Motorela 50.00

2018
XU to Tagoloan2 Taxi 350.00

TOTAL 1,980.00

1- Additional 50.00 for reserving the taxi.

2- The next event will be in Tagoloan