You are the purchasing officer of a fast-food restaurant that is selling hamburger in the city of Muscat. The fast food chain business operates 25 stores strategically located in the region. Due to the decline in demand caused by the epidemic, the company is proposing measures to cut cost. The manager asked you to look for cheaper source of raw materials (bread). The company always avail of trade and cash discount. You decided to call the suppliers and gathered the following data; Supplier A (Lulu Supermarket) – The supplier offers 15% trade discount. Supplier B (Carrefour Market) – The supplier offers chain discounts of 10/5/2. Supplier C (Danube Supermarket) – The supplier offers no trade discount but cash discount of 5/10, n/30. Supplier D (Panda Supermarket) – The supplier offers trade discount of 10%, the terms of payment are 2/10, n/30. If the company decides to buy OMR 1,500 worth of bread from Supplier D (Panda Supermarket), what is the amount of trade discount, cash discount and the price paid if made within the discount period? 2.Which supplier would you recommend? Discuss your reasons. 3.Discuss behavioral and non-financial factors you consider when choosing a supplier.
You are the purchasing officer of a fast-food restaurant that is selling hamburger in the city of Muscat. The fast food chain business operates 25 stores strategically located in the region. Due to the decline in demand caused by the epidemic, the company is proposing measures to cut cost. The manager asked you to look for cheaper source of raw materials (bread). The company always avail of trade and cash discount. You decided to call the suppliers and gathered the following data;
Supplier A (Lulu Supermarket) – The supplier offers 15% trade discount.
Supplier B (Carrefour Market) – The supplier offers chain discounts of 10/5/2.
Supplier C (Danube Supermarket) – The supplier offers no trade discount but cash discount of 5/10, n/30.
Supplier D (Panda Supermarket) – The supplier offers trade discount of 10%, the terms of payment are 2/10, n/30.
- If the company decides to buy OMR 1,500 worth of bread from Supplier D (Panda Supermarket), what is the amount of trade discount, cash discount and the price paid if made within the discount period?
2.Which supplier would you recommend? Discuss your reasons.
3.Discuss behavioral and non-financial factors you consider when choosing a supplier. Explain your answer.
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