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MNP3702 ASSIGNMENT 1 2025 SEMESTER 1

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MNP3702 ASSIGNMENT 1 2025 SEMESTER 1

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Uploaded on
March 23, 2025
Number of pages
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Written in
2024/2025
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MNP3702 A1 SEM 1 2025 0612621185/0717513144


DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE
FRAMEWORK IS NOT PREPARED NOR APPROVED BY UNISA, RATHER
REPRESENTS A POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH
THEORY OF MNP3702. THIS FRAMEWORK IS ONLY INTENDED TO ASSIST
STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT, AND IN NO CASE
THIS DOCUMENT SHOULD BE USED FOR CHEATING, THUS NO STUDENT IS
ENCOURAGED TO COPY THIS DOCUMENT, NOR ITS SECTIONS FOR
SUBMISSION. WE BELIEVE THE FRAMEWORK WILL BE A GOOD STARTING
POINT AS IT WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE
TUTORS WHO ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING
VARIOUS SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR
DISCUSION BY OTHER AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO
NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF THE
ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
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, MNP3702 A1 SEM 1 2025 0612621185/0717513144


QUESTION 1: Argue whether Woolworths should use many suppliers or not.
Justify your argument.

The case study mentions that Woolworths is facing shortages due to "supplier issues
and heavy rains". This situation suggests that Woolworths might benefit from
diversifying its supplier base. Relying on a limited number of suppliers can create
vulnerabilities in the supply chain, as evidenced by the current shortages experienced
by Woolworths when one or more suppliers face problems.

Therefore, it can be argued that Woolworths should consider using a larger number of
suppliers to mitigate risks such as supplier-specific issues. Having multiple suppliers
for the same or similar products could provide a buffer when one supplier faces
disruptions, whether due to their own operational problems or external factors like
adverse weather conditions, as mentioned in the case study ("heavy rains"). This
diversification could lead to a more resilient supply chain and ensure a more consistent
availability of products on Woolworths' shelves.

Furthermore, a larger pool of suppliers can foster competition, potentially leading to
better pricing and quality. While managing a larger number of suppliers can be more
complex, the potential benefits of increased supply chain resilience and potentially
improved costs may outweigh these challenges, especially for a large retailer like
Woolworths facing supply disruptions.

QUESTION 2: [4 marks] As a supply chain specialist, explain to Woolworths the
importance of demand management and how it could implement it to curb
shortages in the future.

Demand management encompasses the processes used to forecast demand and
then to align supply with that demand. It involves a range of activities from
estimating customer demand to converting specific orders into promised delivery
dates, ultimately aiming to balance demand with supply.

The Importance of Demand Management for Woolworths

Effective demand management is paramount for Woolworths to curb shortages
because a lack of availability of items has a major impact on sales, profitability, and

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