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Former Member
Jul 31, 2008 at 11:48 AM

Purchasing of Potato for producing Wafers

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Dear Gurus,

I am facing problem in the scenario Mentioend below,will be very thankful to u if u will give ur valuable comments and suggestion:

*Purchasing of Potato for producing Wafers*

Below Mentioned in Bold are the factors on which potato purchasing depends

Vendors :

Potatos are purchased from 2 vendors

Vendor 1

Vendor 2

Varieties of Potatoes:

A1

B1

C1

D1

LOTS :

Potatoes Comes in different Lots and has different Markas or Identification

These lots can vary from 10 to 300 which comes from vendors.

Markas or Identification of Potatoes: Marka(Identification of Lot)

Markas ranges from : SADU(Sada Potato) , A to Z

PRICE :

Price of Potatoes according to Lots and Markas also Variety is considered.

Sceanrio:

Planning person Plans for the schedule of the Potatos which are to be purchased from these 2 vendors mentioned above.

Vendor 1

Vendor 2

Planning person schedules for the weekly delivery of the potatos and he orders potatos (Telephonic) for the whole week,For the whole week days wise schedule (Morning and evening) how much potatos are to be ordered that schedule is given to vendor.

NOTE:Please note that the planning manager does not know the price of the Potatos and also he donu2019t know how many lots of which identification comes. Price of Different lots with different identification varies.

For Eg: Monday : Morning -35 tons and evening 80 Tons

Tuesday : Morning -55 tons and evening 70 Tons

Wednesday: Morning -75 tons and evening 50 Tons

u2026u2026u2026u2026u2026u2026u2026u2026..

u2026u2026u2026u2026u2026u2026u2026u2026.And So on .

Vendor sends Potatos against the Order with Delivery challan,

Now the Potatos Which are purchased from vendor,Let us see how vendor purchase it from farmers and how the price is quoted from vendor.

Suppose vendor 1

Who receives schedule of week as 700 tons of which daily requirement on an average is 100 tons per day out of which he sends 50 tons in morning and 50 tons in evening.

Now to meet this daily requirement of 100 Tons out of which 50 in morning and 50 in the evening

Morning demand

Lets see how he arranges this 50 Tons of Potatos from farmer.

He arranges 15 tons from 1 farmer ,Farmer puts these potatos in Jute bags Let us say these 15 tons are managed in 21 Jute Bags . (that means Lot size is 21 Bags and Variety for eg is Chip sona ). On these 21 Bags he puts some identification or MARKA ,For Eg Marka is u201COu201D

And the price that farmer quotes rates per 20 kg ,in this case for eg he has quoted Rs 180 per 20 Kg

He arranges 25 tons from 2nd farmer, Farmer puts these potatos in Jute bags Let us say these 25 tons are managed in 35 Jute Bags . (that means Lot size is 35 Bags and Variety for eg is Chip sona ). On these 35 Bags he puts some identification or MARKA ,Here the Marka is u201CAu201D

The price that farmer quotes rates per 20 kg ,in this case for eg he has quoted Rs 184 per 20 Kg

Remaining 10 tons he arranges from 3rd farmer, Farmer puts these potatos in Jute bags Let us say these 10 tons are managed in 15 Jute Bags . (that means Lot size is 15 Bags and Variety for eg is Chip sona ). On these 10 Bags he puts some identification or MARKA ,Here the Marka is u201CSADUu201D

The price that farmer quotes rates per 20 kg ,in this case for eg he has quoted Rs 178 per 20 Kg

After arranging this morning demand he sends the Potato to Client in Truck with the delivery challan

Let us see how the challan looks like:

Sr No Variety Marka(Identification of Lot) Vakkal(Lot) Wt of Vakkal(lot)

1 A1 "O" 21 15000

2 A1 "A" 35 25000

3 A1 "SADU" 15 10000

Next day Bill comes to Client in which the price details are mentioned

That means Balaji doesnu2019t know how many lots(Vakkal) of which marka will come and what will be its price.

Another thing that is to be noted about the difference between the weight of the potato reffered on the delivery challan and the actual weight :

Here in weigh Bridge the actual Weight in tons of all the Potatos are calculated.

Since in transportation the moisture content in the potatos gets reduced as per the delivery challan weight the actual weight is less.

So Vendor 1 gives Quantity discount (he picks any one Lot size and from that he just deducts the discounted quantity) and sends the invoice to Client.

Scenario is same with vendor 2 .Only the difference is in discount .

Where as Vendor 2 Gives Price Discount.

Thanking you

Shailesh M