MNP2601/201/1/2018
Tutorial Letter 201/1/2018
Purchasing Management
MNP2601
Semester 1
Department of Entrepreneurship, Supply
Chain, Transport, Tourism and Logistics
Management
This tutorial letter contains the answers to the assignments and guidelines on
the format of the examination.
BARCODE
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
2 GUIDELINES ON ANSWERING ASSIGNMENT 01 ..................................................................... 3
3 GUIDELINES ON ANSWERING ASSIGNMENT 02 ................................................................... 11
4 GUIDELINES ON ANSWERING ESSAY QUESTIONS .............................................................. 16
5 FORMAT OF THE EXAMINATION PAPER................................................................................ 17
6 IN CLOSING ............................................................................................................................... 18
2
, MNP2601/201/1/2018
Dear Student
1 INTRODUCTION
This tutorial letter contains the answers to Assignments 01 and 02, as well as the format of the
examination paper.
2 GUIDELINES ON ANSWERING ASSIGNMENT 01
Assignment 01 was compulsory, which means you had to submit it to gain admission to the
examination. Your marks for both Assignments 01 and 02 will contribute to your year mark. The
correct options for the multiple-choice questions, an explanation for these answers and the
appropriate chapters in the prescribed book are indicated below. The questions from TL101 are
included to facilitate following the answers. You can expect similar questions in the examination.
Question 1
If a company adopts the philosophy of lean manufacturing, they would typically say the
following:
[1] “By keeping large inventories of raw materials, even if not used in manufacturing, we will
be prepared to respond to customers’ orders when they come in.”
[2] “If we have more work stations at the plant, we can employ more people in the
manufacturing process.”
[3] “By simplifying our work environment, we can reduce waste and keep our employees,
equipment and workspace responsive to current needs.”
[4] “We have invested large sums of capital in these advanced machines; therefore, we
need to get maximum return on our investment before meeting changing demands.”
Answer: Option 3 (Chapter 1 of the prescribed book)
This question shows that you should truly comprehend the concepts discussed in the
prescribed book. If you need more information than what is provided in the prescribed book to
grasp a concept, you are encouraged to find further explanations and examples from other
sources. Lean manufacturing is about having the most effective (thus economical)
manufacturing processes. Options 1, 2 and 4 are typical ways of being ineffective and slow to
respond, and should be avoided if a philosophy of lean manufacturing is adopted.
Question 2
During the control task, the activity of evaluating the performance of the purchasing and supply
function should be based on both the following critical dimensions:
[1] tactical and strategic objectives
[2] centralisation and decentralisation
[3] quantitative and qualitative bases
[4] cost reduction and income increase
Answer (Option 3, Chapter 2 of the prescribed book)
The performance evaluation of the purchasing and supply function should include BOTH
objective/quantitative and subjective/qualitative dimensions. Option 1 refers to the
management task of planning and coordination, while option 2 refers to the management task
of organising. Option 4 refers both to quantitative aspects.
3
Tutorial Letter 201/1/2018
Purchasing Management
MNP2601
Semester 1
Department of Entrepreneurship, Supply
Chain, Transport, Tourism and Logistics
Management
This tutorial letter contains the answers to the assignments and guidelines on
the format of the examination.
BARCODE
, CONTENTS
Page
1 INTRODUCTION .......................................................................................................................... 3
2 GUIDELINES ON ANSWERING ASSIGNMENT 01 ..................................................................... 3
3 GUIDELINES ON ANSWERING ASSIGNMENT 02 ................................................................... 11
4 GUIDELINES ON ANSWERING ESSAY QUESTIONS .............................................................. 16
5 FORMAT OF THE EXAMINATION PAPER................................................................................ 17
6 IN CLOSING ............................................................................................................................... 18
2
, MNP2601/201/1/2018
Dear Student
1 INTRODUCTION
This tutorial letter contains the answers to Assignments 01 and 02, as well as the format of the
examination paper.
2 GUIDELINES ON ANSWERING ASSIGNMENT 01
Assignment 01 was compulsory, which means you had to submit it to gain admission to the
examination. Your marks for both Assignments 01 and 02 will contribute to your year mark. The
correct options for the multiple-choice questions, an explanation for these answers and the
appropriate chapters in the prescribed book are indicated below. The questions from TL101 are
included to facilitate following the answers. You can expect similar questions in the examination.
Question 1
If a company adopts the philosophy of lean manufacturing, they would typically say the
following:
[1] “By keeping large inventories of raw materials, even if not used in manufacturing, we will
be prepared to respond to customers’ orders when they come in.”
[2] “If we have more work stations at the plant, we can employ more people in the
manufacturing process.”
[3] “By simplifying our work environment, we can reduce waste and keep our employees,
equipment and workspace responsive to current needs.”
[4] “We have invested large sums of capital in these advanced machines; therefore, we
need to get maximum return on our investment before meeting changing demands.”
Answer: Option 3 (Chapter 1 of the prescribed book)
This question shows that you should truly comprehend the concepts discussed in the
prescribed book. If you need more information than what is provided in the prescribed book to
grasp a concept, you are encouraged to find further explanations and examples from other
sources. Lean manufacturing is about having the most effective (thus economical)
manufacturing processes. Options 1, 2 and 4 are typical ways of being ineffective and slow to
respond, and should be avoided if a philosophy of lean manufacturing is adopted.
Question 2
During the control task, the activity of evaluating the performance of the purchasing and supply
function should be based on both the following critical dimensions:
[1] tactical and strategic objectives
[2] centralisation and decentralisation
[3] quantitative and qualitative bases
[4] cost reduction and income increase
Answer (Option 3, Chapter 2 of the prescribed book)
The performance evaluation of the purchasing and supply function should include BOTH
objective/quantitative and subjective/qualitative dimensions. Option 1 refers to the
management task of planning and coordination, while option 2 refers to the management task
of organising. Option 4 refers both to quantitative aspects.
3
