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MNP2601-25-S2

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In which way may an organisation become involved in supplier development when a required product is not available?
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Woolworths has specialised buying teams functioning from Head Office to purchase food, homeware and clothing items to be sold in retail outlets throughout South Africa. Which one of the following options would make their purchasing and supply organisational structure functional?
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Janet owns an

organisation producing different types of canned sardines in Mombasa on the

Kenyan coast. She sells her products directly throughout Kenya and to larger

exporters. Janet relies on consistent orders from three organisations for about

80% of her product. These organisations order regularly and have connections to

the export market. What is the biggest challenge of Covid-19 for Janet’s

organisation?

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The Russian war

in Ukraine and the harsh Covid-19 shutdown in many industrial Chinese cities

has amplified supply chain vulnerabilities to such an extent that in March

2022, only 7% of sea shipments from Asia to North America arrived on time,

while 6% were on time for the Asia-to-Europe route.

A local South

African hardware store has ordered a shipment of plastic covers, as well as

their most popular paint colour from Asia which travels through Europe to South

Africa. An organisation that is aware of the risk that their products might not

be delivered on time, needs to put a contingency plan in place to mitigate the

risk of running out of stock.

Question

: Which one of the following represents the action threshold

included in such a contingency plan?

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Inospace is a South African company that leases and sells industrial, storage and office space. T

he surge in demand for warehouse space saw

Inospace’s vacancy rates for logistics property fall below 4% for the first

time on record in late 2021.

Inospace

acts as the … in its relationship with the organisations opting for a

just-in-case inventory strategy.

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Historically, a landlord

would rent out a warehouse and leave the internal design and kitting out to the

tenant. Logistics providers are increasingly looking to allocate their capital

differently, rather than tying up large up-front amounts of working capital

into racking, shelving and design. The high cost of remodelling a warehouse to

compete with other dark stores prompted some retailers to outsource their

warehousing function. Which one of the following options would favour the

outsourcing of the warehousing function?

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You are working

for a large retail grocery store who recently purchased a dark store of 10 000m

²

. As the purchasing and supply manager you are tasked to investigate

which organisational structure will be the best fit in optimising the benefits

of a dark store.  Which one of the

organisational structures is most likely to be more beneficial?

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Read the scenario

and answer the question

: Assume

that the Foschini Group (TFG) apparel selling division visited potential small

local producers of T-shirts to inspect their equipment and craftmanship to

ensure that the garment quality is up to standard. Upon investigation, the

visiting group was pleasantly surprised that a potential small producer is

buying exclusively from a fabric mill who in turn only buys from a group of

small-scale cotton farmers. The cotton farmers use newly acquired cotton baler machines that were procured

with the help of Cotton SA.

Question

: With TFG apparel as the focal firm, who would form their first-tier

supplier?

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You are the

manager at Santa’s Superstore. During the 2020 lockdown, you still had

relatively good sales despite lockdowns and stock delays. The reason for good

sales was increased consumer demand when more consumers stayed at home during

the holiday season lockdown and wanted to decorate their houses. Fortunately,

you still had enough stock available from the 2019 Christmas period. 2021 was

rough due to limited stock and delays in China imports of decorations and

lights. How did you most probably balance lower cost and increased sales to survive

in 2021?

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Since the concepts “value chain” and “supply chain” are often confused, students must remember that the supply chain is intra-organisational and the value chain is inter-organisational.
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