QUESTION 2 SmartHome Ltd has three major suppliers. The company is currently analysing its supplier costs to assess the relative performance of each supplier. For 2021, SmartHome identified a range of

activities that are consumed by each supplier. Such information is provided below. Activity Order Material Receive order Inspect order Return material to supplier Pay supplier Dispute invoice amount In 2021, SmartHome's suppliers consumed the following number of activities: Panels Boards Ltd Supplies Activity Order Material Receive order Inspect order Return material to supplier Cost per unit of activity driver £85.00 per order £125.00 per delivery £130.00 per delivery £115.00 per return £65.00 per invoice £250.00 per dispute Pay supplier Dispute invoice amount 30 30 30 15 1 46 55 55 46 0 Matrix Ltd The cost of material purchases from each supplier during 2021 was as follows: Panels Ltd £120,000 Boards Supplies £75,000 Matrix Ltd £70,000 44 50 50 5 12 6/nRequired: a) Calculate the total cost of ownership for each of the three suppliers. AND [17 marks] b) Determine the supplier performance index for each supplier. AND c) Discuss the relative performance of each supplier and make a recommendation on supplier selection. [10 marks] [3 marks]