,JUNE / JULY 2020 SOLUTIONS
SECTION A
Q 1.1 [c] Bottleneck: Page 221 of the Textbook
Q 1.2 [a] When a supplier produces a new part for an aircraft: Page 476 of the Textbook
Q 1.3 [c] The supplier is reluctant to share information on costs or processes: Page 345 of the
Textbook
Q 1.4 [b] When the specification or requirements are clear to the seller: Page 502 of the
Textbook
Q 1.5 [a] Commodities: Page 416 of the Textbook
SECTION B
2.1
1. BEE Ownership and Control Status Page 50 of the study guide - As stated in the
Case Study this was a requirement
2. Scheduling and Control System Page 269 of the textbook - Does the supplier’s
scheduling system support a purchaser’s delivery requirements? What lead time does the
supplier’s scheduling and control system require?
2.2
1. Process and Technology Capability Page 266 of Textbook - the DoH requirement has
changed from 3000 to 4500 per month
2. Total Quality Performance, Systems and Philosophy - Page 266 of the Textbook (this will
address quality issues highlighted)
3. E-Commerce Capability - Page 270 and 271 of the textbook (better forms of communication
available - supplier communicated by email and phone which is unreliable)
2.3 Characteristics on Page 13 of Study Guide
1. Form Cross Functional Development Teams Page 341 of textbook
2. Measure Supplier Performance on Page 324 of the textbook
2.4 Page 309 of the Textbook - Quality standards, such as ISO 9001:2008 and ISO 14001:2004, are
designed to create and maintain process consistency in the production of goods and services. In
turn, these standards can provide the user or customer with greater confidence that purchased
goods and services will satisfactorily meet its requirements -
,SECTION C
Title
Table of contents
Introductions
Main Discussions:
Probable Pricing Strategies
1. Price Volume Model Page Page 421 of textbook - Makro, Jumbo, Builders Trade Depot?
2. Competition Pricing Model Page 425 of Textbook - Game, Dion Wired, Builders Warehouse,
Builders Express, Builders Superstore
3. Market Share Model - Cambridge Food, Rhino
Supply Base Risks - Page 350, Exhibit 9.11
1. Political - Walmart’s offshore expansion has not inspired more American interest in investing
in South Africa, because of the local government’s stringent foreign investment laws.
2. Market - Makro and pick n Pay have become very competitive considering the loyalty cards,
eg, discounts are given on products if volumes are increased
Sourcing - there are also issues with language, communication, and time differences. There are
many African languages spoken throughout Africa
4. Financial - When shipping pipelines are lengthened,
inventory carrying costs become greater, for example, inventory investment, storage and
warehousing costs, material handling, loss and damage, taxes, obsolescence, and lost
opportunity costs. This is being experienced globally due to the Covid-19 Pandemic.
Currency fluctuations is also a concern Supplier Company - Here, the buyer
should be concerned with the supplier’s current financial stability and future liability. Covid-19 has
caused increased instability in many countries
Suggestions
Page 353, Exhibit 9.12
Conclusion
, List of sources consulted/bibliography
Declaration
JUNE / JULY 2021 SOLUTIONS
Section A
Question 1
1.1 [b] Confidentiality is correct, as Star Labs wants to protect its information and wants mutual
trust . is a legal contract between two parties that clearly defines confidential material, knowledge,
or information that the parties wish to share with one another for certain purposes, but this
information cannot be shared to anyone else besides the two parties involved.
1.2 [a] Category/sourcing strategy is correct, at this strategy level number she enabled her
investment of buying the building into other income practices. By using a already purchased
investment to achieve another goal which is increase her monthly cash flow
1.3 [b] Extended enterprise is correct , an organization stretches out to more than just it
employees, its board members, and executives, but also to the external partners such as business
partners, their suppliers, and its customers.
1.4 [a] Gantt chart is correct, project management tool used for the planning and scheduling of
projects of various sizes, and are very beneficial for intricate projects. The chart provides
information such volume of work completed or production accomplished in a particular periods of
time in relation to the expected scheduled work that needed to take place in that stage.
1.5 [b] Setting up temporary supply development teams is correct, a cross functional team must
be created which is step 3 in the development strategy. This step is done before contact is made
with the supplier , to address all the important requirements of the buyer. Once they have
established what they require from the supplier they will address the supplier
SECTION A
Q 1.1 [c] Bottleneck: Page 221 of the Textbook
Q 1.2 [a] When a supplier produces a new part for an aircraft: Page 476 of the Textbook
Q 1.3 [c] The supplier is reluctant to share information on costs or processes: Page 345 of the
Textbook
Q 1.4 [b] When the specification or requirements are clear to the seller: Page 502 of the
Textbook
Q 1.5 [a] Commodities: Page 416 of the Textbook
SECTION B
2.1
1. BEE Ownership and Control Status Page 50 of the study guide - As stated in the
Case Study this was a requirement
2. Scheduling and Control System Page 269 of the textbook - Does the supplier’s
scheduling system support a purchaser’s delivery requirements? What lead time does the
supplier’s scheduling and control system require?
2.2
1. Process and Technology Capability Page 266 of Textbook - the DoH requirement has
changed from 3000 to 4500 per month
2. Total Quality Performance, Systems and Philosophy - Page 266 of the Textbook (this will
address quality issues highlighted)
3. E-Commerce Capability - Page 270 and 271 of the textbook (better forms of communication
available - supplier communicated by email and phone which is unreliable)
2.3 Characteristics on Page 13 of Study Guide
1. Form Cross Functional Development Teams Page 341 of textbook
2. Measure Supplier Performance on Page 324 of the textbook
2.4 Page 309 of the Textbook - Quality standards, such as ISO 9001:2008 and ISO 14001:2004, are
designed to create and maintain process consistency in the production of goods and services. In
turn, these standards can provide the user or customer with greater confidence that purchased
goods and services will satisfactorily meet its requirements -
,SECTION C
Title
Table of contents
Introductions
Main Discussions:
Probable Pricing Strategies
1. Price Volume Model Page Page 421 of textbook - Makro, Jumbo, Builders Trade Depot?
2. Competition Pricing Model Page 425 of Textbook - Game, Dion Wired, Builders Warehouse,
Builders Express, Builders Superstore
3. Market Share Model - Cambridge Food, Rhino
Supply Base Risks - Page 350, Exhibit 9.11
1. Political - Walmart’s offshore expansion has not inspired more American interest in investing
in South Africa, because of the local government’s stringent foreign investment laws.
2. Market - Makro and pick n Pay have become very competitive considering the loyalty cards,
eg, discounts are given on products if volumes are increased
Sourcing - there are also issues with language, communication, and time differences. There are
many African languages spoken throughout Africa
4. Financial - When shipping pipelines are lengthened,
inventory carrying costs become greater, for example, inventory investment, storage and
warehousing costs, material handling, loss and damage, taxes, obsolescence, and lost
opportunity costs. This is being experienced globally due to the Covid-19 Pandemic.
Currency fluctuations is also a concern Supplier Company - Here, the buyer
should be concerned with the supplier’s current financial stability and future liability. Covid-19 has
caused increased instability in many countries
Suggestions
Page 353, Exhibit 9.12
Conclusion
, List of sources consulted/bibliography
Declaration
JUNE / JULY 2021 SOLUTIONS
Section A
Question 1
1.1 [b] Confidentiality is correct, as Star Labs wants to protect its information and wants mutual
trust . is a legal contract between two parties that clearly defines confidential material, knowledge,
or information that the parties wish to share with one another for certain purposes, but this
information cannot be shared to anyone else besides the two parties involved.
1.2 [a] Category/sourcing strategy is correct, at this strategy level number she enabled her
investment of buying the building into other income practices. By using a already purchased
investment to achieve another goal which is increase her monthly cash flow
1.3 [b] Extended enterprise is correct , an organization stretches out to more than just it
employees, its board members, and executives, but also to the external partners such as business
partners, their suppliers, and its customers.
1.4 [a] Gantt chart is correct, project management tool used for the planning and scheduling of
projects of various sizes, and are very beneficial for intricate projects. The chart provides
information such volume of work completed or production accomplished in a particular periods of
time in relation to the expected scheduled work that needed to take place in that stage.
1.5 [b] Setting up temporary supply development teams is correct, a cross functional team must
be created which is step 3 in the development strategy. This step is done before contact is made
with the supplier , to address all the important requirements of the buyer. Once they have
established what they require from the supplier they will address the supplier
