Assignment-1

Consider the following information (Q.1-Q.5)

Consider a project whose estimated cost is Rs.50,00,000. The details of the technical scores
secured, and the financial bids submitted by six bidders to execute the project are provided in
Table-1. The evaluation criterion is as follows:

1. Technical score must be more than 50.

2. Financial scores of bidders are to be evaluated by ‘awarding 100 marks to the lowest
bidder and allocating marks to others proportionately’
3. For technically qualified bidders, composite score will be evaluated by considering 60%
weightage to technical marks and 40% weightage to the cost quoted.
4. Job will be awarded to the bidder with highest composite score. In case of a tie between
two or more bidders, job will be awarded to the bidder having highest technical score
among them.
5. The call may be cancelled if the awarded price deviates more than +15% from the
estimated cost.

Table 1: Details of technical score and financial bids

Technical Financial bid
Bidder score* (lakhs)
A 52 49
B 56 53
C 66 55
D 70 59
E 49 45
F 67 61
*: Evaluated using certain technical criterion
Answer the following questions:

1. Which of the following statements is TRUE?

a) Project is awarded to bidder-C b) Project is awarded to bidder-F

c) Project is awarded to bidder-D d) Call has to be cancelled

2. If bidders are ranked according to their composite score (rank-1 to highest composite
scorer), which bidder secures rank-3?

a) D b) C
c) B d) A

3. Which of the following bidders have nearly same composite score?

 a) C & D b) B & F
c) A & F d) C & F

4. If rule-1 is not there in the evaluation criteria, then which bidder secures the lowest
composite score?

a) B b) A
c) F d) E

5. If rule-1 is not there in the evaluation criteria, then the composite score secured by
bidder-E is____

a) 70.5% b) 65.9%
c) 67.9% d) 69.4%

Consider the following information (Q.6-Q.10)

A constructional company stores various items in the central stores. The average annual
consumption and cost per unit of items stored are given in Table-2. The company uses ABC
analysis (as defined in lecture-5) to decide the criticality of items for procurement.

Table 2
Name Average annual Average
of the consumption cost per
item (No.) unit
a 4500 50
b 1500 90
c 2000 250
d 3900 20
e 45 450
f 5800 65
g 2200 77
h 3990 20
i 55 400
j 258 110
k 200 19
l 45 154

Answer the following questions:

6. What proportion of total number of items are class-A?

a) 50.3% b) 25%
 c) 16.7% d) 15%

7. To which class of items does item-‘g’ belong?

a) A b) C
c) B d) Can be both A or B

8. As per the company rules, if junior level management is authorized to procure class-C
items, which of the following items can be procured by a junior level manager?

a) g & k b) g & b
c) g & e d) e & k

9. What proportion of total cost do items in class-B constitute?

a) 18.5% b) 14.3%
c) 66.9% d) 10%

10. Identify the correct statement among the following:

a) Items b & d belong to same class b) Items a & j belong to same class
c) Items c & a belong to same class d) Items c & k belong to same class