, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
SECTION A
QUESTION 1
(a) Number: 1.1
(b) Correct Option: [c] Conducting market analysis, evaluating supplier capabilities, and aligning
sourcing decisions with the organisation’s long-term strategic objectives.
(c) Reason for correctness: This option correctly describes strategic sourcing, which is a
comprehensive approach that moves beyond price to consider total cost, supplier capabilities, and
alignment with long-term goals like innovation and sustainability. The scenario explicitly mentions
supporting "long-term growth, innovation, and sustainability goals," which is the core of strategic
sourcing as opposed to tactical buying (SCH4801, Learning Unit 7, pp. 34-35).
(d) Why other options are incorrect:
[a] is incorrect because focusing solely on the lowest price and short-term contracts is a transactional
approach, not strategic sourcing. It fails to build the collaborative, reliable supplier relationships
needed for innovation and sustainable growth in new markets, as highlighted in the scenario.
[b] is incorrect because skipping market research directly contradicts the principles of strategic
sourcing. Market analysis is a critical first step to understand supply markets, identify potential
suppliers, and make informed decisions that mitigate risk and support long-term objectives.
[d] is incorrect because relocating warehouses is a distribution or logistics network design decision,
not a sourcing or procurement strategy. While it can improve delivery times, it does not address the
core question of selecting and managing suppliers for components, which is the team's task in the
scenario.
(a) Number: 1.2
(b) Correct Option: [b] Improving collaboration with raw material suppliers to reduce lead times and
increase supply reliability.
(c) Reason for correctness: Upstream linkages in a supply chain refer to activities and relationships
with suppliers (supplier's side). The scenario identifies a problem with "delays in its raw material
supply." Improving collaboration with raw material suppliers directly targets this upstream challenge
to improve lead times and reliability (Ambe, 2022, p. 5; SCH4801, Learning Unit 1, p. 5).
(d) Why other options are incorrect:
[a] is incorrect because partnering with a last-mile delivery service focuses on downstream linkages
(getting finished goods to customers). This addresses the "late deliveries" complaint but does not
solve the upstream raw material delay problem.
[c] is incorrect because launching a customer support centre is a downstream, post-sale service
activity. It does nothing to improve the flow of raw materials from suppliers into the manufacturing
process.
, [d] is incorrect because adding delivery vehicles to the fleet is a downstream logistics improvement
(outbound transportation). It aims to manage customer order deliveries more effectively but fails to
address the root cause of production delays stemming from unreliable raw material supply.
(a) Number: 1.3
(b) Correct Option: [b] Reducing waste by working collaboratively with suppliers and customers to
improve quality and efficiency.
(c) Reason for correctness: A lean supply chain strategy focuses on eliminating all forms of waste
(muda) across the entire value stream. This is achieved through close collaboration with supply chain
partners (suppliers and customers) to improve quality, synchronize flows, and enhance overall
efficiency, which directly reduces waste (SCH4801, Learning Unit 3, p. 16; Badenhorst-Weiss et al.,
2017, p. 46).
(d) Why other options are incorrect:
[a] is incorrect because increasing inventory levels is the opposite of lean thinking. Lean aims to
minimize inventory, as excess inventory is considered a primary form of waste that hides other
inefficiencies.
[c] is incorrect because while automation can reduce labour waste, lean waste reduction is much
broader. It encompasses seven types of waste (overproduction, waiting, transport, excess processing,
inventory, motion, defects), not just labour costs. A lean strategy addresses all of these
collaboratively.
[d] is incorrect because maximizing output regardless of customer demand leads directly to
overproduction, which is identified as the most fundamental form of waste in lean philosophy. Lean
production is driven by actual customer demand (pull), not by pushing maximum output.
(a) Number: 1.4
(b) Correct Option: [c] Waste elimination to remove non-value-adding activities.
(c) Reason for correctness: The scenario describes three classic examples of operational waste
(muda): 1) finished goods idle while waiting for packaging (waiting time), 2) workers walking long
distances (unnecessary motion), and 3) holding large raw material quantities "just in case" (excess
inventory). The operations manager is therefore directly addressing waste elimination, a core
principle of lean management and supply chain optimisation (SCH4801, Learning Unit 3, p. 16;
Ambe, 2022, Chapter 3, p. 82).
(d) Why other options are incorrect:
[a] is incorrect because capacity planning focuses on ensuring sufficient production capacity
(machines, labour) to meet demand. While related to efficiency, it does not specifically target the
idle time, excess motion, and excess inventory problems described.
[b] is incorrect because workforce scheduling deals with assigning employee shifts and availability.
The issue is not when workers are available, but how inefficiently they move due to poor layout
(unnecessary motion).
SECTION A
QUESTION 1
(a) Number: 1.1
(b) Correct Option: [c] Conducting market analysis, evaluating supplier capabilities, and aligning
sourcing decisions with the organisation’s long-term strategic objectives.
(c) Reason for correctness: This option correctly describes strategic sourcing, which is a
comprehensive approach that moves beyond price to consider total cost, supplier capabilities, and
alignment with long-term goals like innovation and sustainability. The scenario explicitly mentions
supporting "long-term growth, innovation, and sustainability goals," which is the core of strategic
sourcing as opposed to tactical buying (SCH4801, Learning Unit 7, pp. 34-35).
(d) Why other options are incorrect:
[a] is incorrect because focusing solely on the lowest price and short-term contracts is a transactional
approach, not strategic sourcing. It fails to build the collaborative, reliable supplier relationships
needed for innovation and sustainable growth in new markets, as highlighted in the scenario.
[b] is incorrect because skipping market research directly contradicts the principles of strategic
sourcing. Market analysis is a critical first step to understand supply markets, identify potential
suppliers, and make informed decisions that mitigate risk and support long-term objectives.
[d] is incorrect because relocating warehouses is a distribution or logistics network design decision,
not a sourcing or procurement strategy. While it can improve delivery times, it does not address the
core question of selecting and managing suppliers for components, which is the team's task in the
scenario.
(a) Number: 1.2
(b) Correct Option: [b] Improving collaboration with raw material suppliers to reduce lead times and
increase supply reliability.
(c) Reason for correctness: Upstream linkages in a supply chain refer to activities and relationships
with suppliers (supplier's side). The scenario identifies a problem with "delays in its raw material
supply." Improving collaboration with raw material suppliers directly targets this upstream challenge
to improve lead times and reliability (Ambe, 2022, p. 5; SCH4801, Learning Unit 1, p. 5).
(d) Why other options are incorrect:
[a] is incorrect because partnering with a last-mile delivery service focuses on downstream linkages
(getting finished goods to customers). This addresses the "late deliveries" complaint but does not
solve the upstream raw material delay problem.
[c] is incorrect because launching a customer support centre is a downstream, post-sale service
activity. It does nothing to improve the flow of raw materials from suppliers into the manufacturing
process.
, [d] is incorrect because adding delivery vehicles to the fleet is a downstream logistics improvement
(outbound transportation). It aims to manage customer order deliveries more effectively but fails to
address the root cause of production delays stemming from unreliable raw material supply.
(a) Number: 1.3
(b) Correct Option: [b] Reducing waste by working collaboratively with suppliers and customers to
improve quality and efficiency.
(c) Reason for correctness: A lean supply chain strategy focuses on eliminating all forms of waste
(muda) across the entire value stream. This is achieved through close collaboration with supply chain
partners (suppliers and customers) to improve quality, synchronize flows, and enhance overall
efficiency, which directly reduces waste (SCH4801, Learning Unit 3, p. 16; Badenhorst-Weiss et al.,
2017, p. 46).
(d) Why other options are incorrect:
[a] is incorrect because increasing inventory levels is the opposite of lean thinking. Lean aims to
minimize inventory, as excess inventory is considered a primary form of waste that hides other
inefficiencies.
[c] is incorrect because while automation can reduce labour waste, lean waste reduction is much
broader. It encompasses seven types of waste (overproduction, waiting, transport, excess processing,
inventory, motion, defects), not just labour costs. A lean strategy addresses all of these
collaboratively.
[d] is incorrect because maximizing output regardless of customer demand leads directly to
overproduction, which is identified as the most fundamental form of waste in lean philosophy. Lean
production is driven by actual customer demand (pull), not by pushing maximum output.
(a) Number: 1.4
(b) Correct Option: [c] Waste elimination to remove non-value-adding activities.
(c) Reason for correctness: The scenario describes three classic examples of operational waste
(muda): 1) finished goods idle while waiting for packaging (waiting time), 2) workers walking long
distances (unnecessary motion), and 3) holding large raw material quantities "just in case" (excess
inventory). The operations manager is therefore directly addressing waste elimination, a core
principle of lean management and supply chain optimisation (SCH4801, Learning Unit 3, p. 16;
Ambe, 2022, Chapter 3, p. 82).
(d) Why other options are incorrect:
[a] is incorrect because capacity planning focuses on ensuring sufficient production capacity
(machines, labour) to meet demand. While related to efficiency, it does not specifically target the
idle time, excess motion, and excess inventory problems described.
[b] is incorrect because workforce scheduling deals with assigning employee shifts and availability.
The issue is not when workers are available, but how inefficiently they move due to poor layout
(unnecessary motion).
