2024 – S1 – MNP2601 – ASSESSMENT 3 – Q&A
Assessment 3
Started on Monday, 22 April 2024,
State Finished
Completed on Monday, 22 April 2024,
Time taken
Marks 15.00/15.00
Grade 100.00 out of 100.00
Question 1
It is possible to shorten the production cycle by extending production capacity to
outsourcing contractors.
True
False
Feedback
The correct answer is 'True'.
Question 2
When buying low-value, non-critical requirements the purchasing and supply
manager may assess potential suppliers by using an informal technique of
submitting his/her judgment to a panel to discuss the relative merits of each supplier
before reaching a decision.
True
False
Feedback
The correct answer is 'True'.
Question 3
Supply-base optimisation is in line with which supply policy?
Reciprocity
1
,2024 – S1 – MNP2601 – ASSESSMENT 3 – Q&A
The use of large suppliers
The use of disadvantaged suppliers
The use of a limited number of suppliers
Feedback
The correct answer is:
The use of a limited number of suppliers
Question 4
Assume a small mushroom grower supplies mushrooms to a fast-food retail chain.
What is the current perspective on formulating a policy regarding captive suppliers,
potentially making the mushroom grower dependent on the fast-food chain buyer for
its continued existence?
Captive suppliers should still be approached with caution, as they may create undue
dependence on the buyer and hinder the grower's ability to innovate and grow
independently.
Captive suppliers are no longer viewed as a serious problem, as modern supply
chain relationships emphasise open communication, cooperation, and long-term
agreements.
Formulating a policy on captive suppliers should prioritise maintaining a balance
between grower dependence and fostering collaborative relationships, ensuring
mutual benefit and sustainability.
The modern era of supply chain management discourages reliance on captive
suppliers, as it may restrict the grower's autonomy and hinder the establishment of
equitable partnerships.
Feedback
The correct answer is:
2
,2024 – S1 – MNP2601 – ASSESSMENT 3 – Q&A
Captive suppliers should still be approached with caution, as they may create undue
dependence on the buyer and hinder the grower's ability to innovate and grow
independently.
Question 5
Supporting the “local is lekker” drive, the grocery store you are employed at started
sourcing from local known suppliers. In the process, several suppliers were added
on the preferred supplier list. Management tasked you to actively engage in the
development of local suppliers. Based on the information provided in the case study,
which one of the following options best implies your contribution to local supplier
development?
Purchasing only from BBBEE local suppliers
Being protective by taking no action towards local suppliers when a product is
not available
Performing the task of quality control on products from potential local
suppliers
Improving the grocery store’s inventory control and management
Feedback
The correct answer is:
Purchasing only from BBBEE local suppliers
3
, 2024 – S1 – MNP2601 – ASSESSMENT 3 – Q&A
Question 6
The case study states the following: Monthly leasing, or what is now becoming
known as “on-demand” warehousing, is attracting enormous demand from
organisations who have moved from “just-in-time” to “just-in-case” inventory
strategies. Caught up in the uncertainties surrounding the pandemic and the
Russia/Ukraine war, some organisations opt for the short-term leasing of warehouse
space until the situation has unfolded. What would this type of buyer-supplier
relationship be known as?
Leasing
Transactional
Alliance
Collaborative
Feedback
The correct answer is:
Transactional
Question 7
The case study mentions attacks in the Suez Canal and the effect of climate change
on the Panama Canal. This has influenced global shipping routes. In the aftermath of
recent attacks in the Red Sea, vessels are opting to bypass the Suez Canal and
navigate around South Africa's Cape of Good Hope. This shift has disrupted the
crucial global shipping routes, compelling ships to add another 15 days to their
journeys, accompanied by increased costs. These cargo delays and increased
delivery times will influence supplier selection and assessment. Look at figure 5.2 in
the prescribed book. Due to the above scenario the evaluation criteria change as
follows:
On-time delivery (15)
Fill-rate (0)
Cost reduction materials (5)
4
Assessment 3
Started on Monday, 22 April 2024,
State Finished
Completed on Monday, 22 April 2024,
Time taken
Marks 15.00/15.00
Grade 100.00 out of 100.00
Question 1
It is possible to shorten the production cycle by extending production capacity to
outsourcing contractors.
True
False
Feedback
The correct answer is 'True'.
Question 2
When buying low-value, non-critical requirements the purchasing and supply
manager may assess potential suppliers by using an informal technique of
submitting his/her judgment to a panel to discuss the relative merits of each supplier
before reaching a decision.
True
False
Feedback
The correct answer is 'True'.
Question 3
Supply-base optimisation is in line with which supply policy?
Reciprocity
1
,2024 – S1 – MNP2601 – ASSESSMENT 3 – Q&A
The use of large suppliers
The use of disadvantaged suppliers
The use of a limited number of suppliers
Feedback
The correct answer is:
The use of a limited number of suppliers
Question 4
Assume a small mushroom grower supplies mushrooms to a fast-food retail chain.
What is the current perspective on formulating a policy regarding captive suppliers,
potentially making the mushroom grower dependent on the fast-food chain buyer for
its continued existence?
Captive suppliers should still be approached with caution, as they may create undue
dependence on the buyer and hinder the grower's ability to innovate and grow
independently.
Captive suppliers are no longer viewed as a serious problem, as modern supply
chain relationships emphasise open communication, cooperation, and long-term
agreements.
Formulating a policy on captive suppliers should prioritise maintaining a balance
between grower dependence and fostering collaborative relationships, ensuring
mutual benefit and sustainability.
The modern era of supply chain management discourages reliance on captive
suppliers, as it may restrict the grower's autonomy and hinder the establishment of
equitable partnerships.
Feedback
The correct answer is:
2
,2024 – S1 – MNP2601 – ASSESSMENT 3 – Q&A
Captive suppliers should still be approached with caution, as they may create undue
dependence on the buyer and hinder the grower's ability to innovate and grow
independently.
Question 5
Supporting the “local is lekker” drive, the grocery store you are employed at started
sourcing from local known suppliers. In the process, several suppliers were added
on the preferred supplier list. Management tasked you to actively engage in the
development of local suppliers. Based on the information provided in the case study,
which one of the following options best implies your contribution to local supplier
development?
Purchasing only from BBBEE local suppliers
Being protective by taking no action towards local suppliers when a product is
not available
Performing the task of quality control on products from potential local
suppliers
Improving the grocery store’s inventory control and management
Feedback
The correct answer is:
Purchasing only from BBBEE local suppliers
3
, 2024 – S1 – MNP2601 – ASSESSMENT 3 – Q&A
Question 6
The case study states the following: Monthly leasing, or what is now becoming
known as “on-demand” warehousing, is attracting enormous demand from
organisations who have moved from “just-in-time” to “just-in-case” inventory
strategies. Caught up in the uncertainties surrounding the pandemic and the
Russia/Ukraine war, some organisations opt for the short-term leasing of warehouse
space until the situation has unfolded. What would this type of buyer-supplier
relationship be known as?
Leasing
Transactional
Alliance
Collaborative
Feedback
The correct answer is:
Transactional
Question 7
The case study mentions attacks in the Suez Canal and the effect of climate change
on the Panama Canal. This has influenced global shipping routes. In the aftermath of
recent attacks in the Red Sea, vessels are opting to bypass the Suez Canal and
navigate around South Africa's Cape of Good Hope. This shift has disrupted the
crucial global shipping routes, compelling ships to add another 15 days to their
journeys, accompanied by increased costs. These cargo delays and increased
delivery times will influence supplier selection and assessment. Look at figure 5.2 in
the prescribed book. Due to the above scenario the evaluation criteria change as
follows:
On-time delivery (15)
Fill-rate (0)
Cost reduction materials (5)
4
