Operations Management course unit Seminar
Academic year 2024/2025 spring semester
PROCUREMENT
Task 1. List the most common supplier-buyer relationship types.
Task 2. Explain the function and meaning of the Krajlics matrix. Fill in the attached template based on
the following data!
Tricycle
Handlebar 1x Wheeled frame Wheel 1x
1x
Frame 1x Wheel 2x
The flagship product of Toy Factory Ltd. is the tricycle. The factory's purchasing organisation has a
direct and an indirect purchasing group that purchases different products. Based on the following
data, fill in the Krajlics matrix.
Purchased items: wheels, rubber end of handlebars (difficult to find a good supplier), aluminium
frame, office supplies, toilet paper, coffee, screws, safety gloves, electronic screwdriver, different
colours of paint.
1
Operations Management course unit Seminar
Academic year 2024/2025 spring semester
Task 3. Collect the most important supplier evaluation approaches used in procurement.
Task 4. Santa Ltd. produces Xmas tree ornaments. There are two its main suppliers the Snowflake
Ltd. and the Snowball Ltd. The following data should be considered about the suppliers with priority:
Snowflake provided 42 shipments in the last year. There was only 1 shipment which was refused by
Santa Ltd. because of quality issues. The product was supplied on HUF 5,000 / carton. From 42 orders
41 were delivered on time. Snowball Ltd. supplied 28 shipments during the last year, where 2
shipments’ quality were objected by Santa Ltd. However, Snowball Ltd. offered the lowest price as
HUF 4,600 / carton. 22 orders were delivered on time. Evaluate the two suppliers using weighted
point supplier evaluation method, if Santa Ltd. takes in consideration the „price” factor of the
product the most with 50 %, then „delivery on time” factor with 30 % and finally the „quality”
factor with 20 %.
Task 5. Press Ltd buys printing industrial accessories from two suppliers as Print Ltd and Studio Ltd.
Print company delivered 27 items during the year from which quantity 1 item was not accepted
because of quality issues. 25 orders of the total quantity arrived on time. The unit price of the
product was HUF 500, which is the cheapest in the market. The Studio Ltd. sold 30 items to Press
Ltd., from which quantity 2 items’ quality was refused, but 29 items arrived on time. The purchase
price was HUF 520. The Press Ltd. evaluates its suppliers every year with weighted point supplier
evaluation approach. The most important factor of the evaluation is the on-time delivery (40%), then
quality and price come with 30-30 %. Which supplier’s performance was higher in the last year?
Analyse the result.
Task 6. Compare the performance of the following suppliers with application of cost-ratio supplier
evaluation method.
Apple Supplier Pear Supplier
Price: HUF 10,000 Price: HUF 10,100
Quality cost ratio: 3% Quality cost ratio: 1%
Delivery cost ratio*: 2% Delivery cost ratio: 2%
*For example: phone calls, internet, EDI, pressing, plant visit, express transportation, administration
