SITXINV003

Purchase Goods

Assessment: - Project

Context and Conditions of Assessment

This assessment will ensure that the elements, performance criteria, performance
evidence and knowledge evidence required and conditions are adhered to
demonstrate competency in this unit assessment task.
• Read the assessment carefully before commencing.
• This is an open book assessment and will be conducted at Macallan College.
• Your Assessor will use the assessment criteria in this document and will
provide feedback / comment.
• You must answer all the questions in the assessment tasks in your own
words.
• Your Trainer / Assessor will inform you of the due date for this assessment
task.
• Your Assessor will grade as either S – Satisfactory or NS – Not Satisfactory
for the assessment. In all cases your Assessor will provide you with feedback.
• Only when all assessment tasks have been graded as S – Satisfactory you will
be deemed C – Competent in the final result of the unit of competency; if you
do not satisfactorily complete all the assessment tasks you will be deemed
NYC – Not Yet Competent.

Re-Assessment Conditions
• If the evidence is graded as NS – Not Satisfactory you will be required to re-
submit the evidence. In this case, you will be provided with clear and
constructive feedback based on the assessment decision so that they can
improve your skills / knowledge prior to reassessment.
• Where a ‘NS – Not Satisfactory’ judgement is made, you will be given
guidance on steps to take to improve your performance and provided the

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 opportunity to resubmit evidence to demonstrate competence. The assessor
will determine and discuss the reasons for NS – Not satisfactory on any of the
criteria and will assess you through a different method of assessment e.g.
verbal/oral questioning, problem solving exercises.
• You will be notified within 10 working days of undertaking an assessment of
their result in achieving competency
o If a student does not complete the assessment, they should notify their
trainer as to why they did not complete the assessment and if due to
illness, a medical certificate must be produced. “This process is
detailed more in the “Training and Assessment Policy and Procedure”
o In the above scenario, student will be given an opportunity for
reassessment within 5 working days with no reassessment fee
charged.
o Students who are deemed to be Not Yet Competent (NYC) will be
provided with information identifying the areas in which they failed to
achieve competency. Students will then have the opportunity to repeat
the assessment task within 5 working days of notification with no
reassessment fee charged.
o If a student is deemed NYC in the reassessment or if the student did
not approach the MACALLAN COLLEGE within five working days with
a valid reason for not availing themselves of the reassessment
opportunity, then those students will be given a final chance to re-sit the
assessment and will be charged at $200.00.
o After this no further reassessment attempt will be provided to the
student and the student will be required to repeat the whole unit with full
fee for the unit as per the fees policy of the MACALLAN COLLEGE.
The student will be made aware of the impact of repeating the unit may
have on their student visa.
o If a student is found to be cheating or plagiarising their assessment, a
$200.00 reassessment fee will be charged for reassessing the
assessment within 5 working days.
o If the student is found to be plagiarising or cheating again after
conclusion of the Intervention meeting with the Course Co-ordinator,

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 the matter will be referred to the CEO / Operation Manager which may
result in the suspension or cancellation of their enrolment
o The MACALLAN COLLEGE has intervention strategies, including
student support services available to enable students to complete
qualification in the expected time frame. Students at risk of not
completing within this time frame are identified as early as possible and
an intervention strategy is put in place.

Macallan College will ensure access to:

• Commercial Kitchen Simulated Environment
• Workplace procedures and instructions relating to safe work practices
• Workplace safety and emergency evacuation procedures
• Hazardous chemicals and dangerous goods information
• Safety materials and equipment relevant to a Commercial Kitchen
• Fire safety equipment First Aid equipment and relevant stock
• Documents for recording workplace safety, accidents and incidents.

Assessment Decision Making Rules

Your assessor will assess the evidence submitted for the following elements,
performance criteria, performance evidence and knowledge evidence to confirm that
the student evidence submitted demonstrates validity, sufficiency, authenticity and
confirms current skills and knowledge relevant to the unit of competency.
Your assessor will be looking for the following in this assessment task: -
• Determine purchasing requirements.
• Access and interpret information and discuss end product requirements with
relevant personnel to determine goods to be purchased.
• Check and assess quality and suitability of stock on hand before proceeding
with new purchases.
• Maximise use of suitable stock on hand to avoid wastage.
• Use forecasting methods to calculate required quantity of goods.
• Determine price limitations for the purchase of goods using job costings.

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 • Develop purchase lists and prioritise purchasing requirements according to
organisational deadlines.
• Source suppliers and discuss requirements
• Source and review potential suppliers and comply with organisational
procedures for the supply of goods.
• Inform supplier of requirements and specifications.
• Confirm availability of supply to meet production requirements.
• Seek price for the supply and negotiate costs within scope of individual
responsibility and organisational policy.
• Refer complex supply issues to a higher level staff member for action.
• Assess quality of goods and make purchase.
• Assess supplier capacity to meet price, quality and delivery expectations.
• Complete assessment of quality of goods.
• Select supplier and purchase goods based on price, availability and quality,
and within scope of individual responsibility and organisational policy.
• Keep accurate purchase records.

Assessment Instructions:
1. Answer to the questions in a new word document.
2. Keep simple formatting with 12pt Arial and single line spacing.
3. Upload file to the drop box provided with a name containing your student ID
and unit code such as MACXXXX_SITXINV003.

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Questions

1. Choose an area of operations relevant to your job role which may include:

Food operations
Food and Beverage
Housekeeping
Reception
Tourism outlet
Travel services
Event management
Operation/Department: ____________________ Job role: _________________

2. Provide a brief overview of the operational area, the hierarchy of command

and the basic procedures in place for sourcing new supplies and suppliers.
If you are not working in industry, explain how this applies in your training
environment/department.

3. Identify and list 6 different types of goods relevant for your area of
operations which need to be purchased in the near future. The products
must be selected from the following categories:
1) alcoholic or non-alcoholic beverages
2) cleaning agents and chemicals
3) customer travel products:
i. luggage labels
ii. travel bags
iii. travel wallets
iv. tickets
v. vouchers
4) event supplies
5) food:
i. dairy products
ii. dry goods
iii. fresh goods

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 iv. frozen goods
v. fruit or vegetables
vi. meat, poultry or seafood
6) fuel:
i. aircraft
ii. coaches
iii. hire cars
iv. vessels
7) general stores
8) housekeeping supplies
9) linen
10) merchandise
11) uniforms

4. List the specific requirements which require the purchase of these goods
based on e.g. an upcoming function, banquet sheet, special customer
requirements, an event, low stock, reservations or as applicable including
the order of urgency for ordering these supplies. Provide details for how
you have identified these requirements including consideration of any
existing stock you have in storage.

5. Contact the relevant department heads/ supervisor or persons relevant for

these product needs and clarify concise specifications and quantities
required. Detail with whom you have communicated and what was
determined.

6. Which forecasting methods form the basis for calculating the quantities
required? How is the choice of forecasting method established?

7. Identify the stock on hand, list the quantities available and indicate whether
these need to be considered in your purchasing order.

8. Determine the price limitations for 3 products you have listed on your
purchase list using job costings from your organisation. How does this

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 affect the maximum price you can pay for the purchase of the product?
Why? Are there any processes for this in your workplace or in the RTO?
What are these?

9. Write the purchasing list based on your requirements and the stock on
hand.

10. List the suppliers who are used by your establishment to source these
products from.

11. Identify the organisational purchasing procedures which form the basis for
purchasing goods and sourcing suppliers in your establishment and
provide the details for these.

12. Source 2 suppliers (other than those you currently use) in your area or
region and obtain information for prices and service provisions for the 6
products you have identified for purchasing in Question 3. (info may be
entered in table) – You are required to list your sources of information

13. Using the table below enter the details for product specifications and prices
from your existing supplier and those from your 2 new sources.

Conditions e.g. delivery time frames

Availability
Price Account Requirements
Payment terms

Item/Product Qty In Purchase Specification Exist. X Z Existing Supplier X Supplier

Stock Qty Comparable Supplier Z
size/Qty/Quality

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 14. Analyse and compare the prices and conditions and provide an overview of
your findings (given that you would have to make a decision based on the
best deal and conditions for supply). For example:
a. Prices
b. Prices based on quantities you would require overall (within the total
order based on quantities required)
c. Conditions like payment terms and conditions and requirements for
purchasing e.g. cash sale or establishing an account etc.
d. Availability of stock

15. Conduct an assessment of the quality of goods for the suppliers of goods
identified in Question 14. List the methods you will employ to do this to
ensure you will get quality supplies. Your responses need to include
reliable processes to ensure quality will be ensured.

16. Take your findings to your trainer or Supervisor and discuss the options for
further price negotiations. What has been discussed and determined, and
how does this fit in with the requirements established in Question 11?

17. Write the purchase order(s) following the analysis and discussion with your
trainer and specify the order of priority according to the needs identified in
Question 4.

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 18. Draft emails for each supplier you have determined for sourcing your
supplies and inform each supplier of the requirements and specifications
you have determined. Ensure the details of your organisation and the
supplier clearly feature in the email including contact details, salutation,
dates/timelines, etc. Attach the relevant purchase order(s) for each
supplier as relevant.

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