MNP2601
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: SEPTEMBER 2026
, Purchasing and Supply Management - MNP2601
Assignment 2 Semester 2 2026
Question 1
Cape Harvest Foods should monitor three key purchasing and supply performance
measures. First, purchase-price performance should measure the actual cocoa price
against the agreed or market benchmark. This is important because cocoa prices have
fallen sharply during 2026 following improved supply and weaker demand (Reuters,
2026a). Second, supplier delivery reliability should measure the percentage of orders
delivered on time and in the required quantity. This will indicate whether suppliers can
maintain continuity despite weather and production uncertainty. Third, supplier
sustainability and traceability performance should measure compliance with origin,
environmental and labour requirements. This is increasingly important because Ivorian
cocoa traders are experiencing difficulties implementing new traceability requirements
for EU markets (Reuters, 2026b). These measures support the performance evaluation
and control role of purchasing and supply management (Badenhorst-Weiss et al.,
2023).
Question 2
The situation is primarily a modified rebuy because Cape Harvest Foods already
purchases cocoa from established suppliers but changing prices, supply conditions and
sustainability requirements require the organisation to reconsider aspects of its existing
purchasing arrangements. The first process step requiring attention is specification
and purchasing planning. Cape Harvest should reassess required volumes, quality,
sustainability and traceability requirements rather than simply continuing previous
quantities. The second is supplier search and evaluation. Existing and potential
suppliers should be compared according to price, capacity, reliability and compliance.
This is consistent with the purchasing process, which requires purchasing personnel to
add value and eliminate unnecessary risk throughout the purchasing cycle (Badenhorst-
Weiss et al., 2023). Ghana's expected 16% production decline for 2026/27 further
ASSIGNMENT 2
SEMESTER 2 2026
UNIQUE NO.
DUE DATE: SEPTEMBER 2026
, Purchasing and Supply Management - MNP2601
Assignment 2 Semester 2 2026
Question 1
Cape Harvest Foods should monitor three key purchasing and supply performance
measures. First, purchase-price performance should measure the actual cocoa price
against the agreed or market benchmark. This is important because cocoa prices have
fallen sharply during 2026 following improved supply and weaker demand (Reuters,
2026a). Second, supplier delivery reliability should measure the percentage of orders
delivered on time and in the required quantity. This will indicate whether suppliers can
maintain continuity despite weather and production uncertainty. Third, supplier
sustainability and traceability performance should measure compliance with origin,
environmental and labour requirements. This is increasingly important because Ivorian
cocoa traders are experiencing difficulties implementing new traceability requirements
for EU markets (Reuters, 2026b). These measures support the performance evaluation
and control role of purchasing and supply management (Badenhorst-Weiss et al.,
2023).
Question 2
The situation is primarily a modified rebuy because Cape Harvest Foods already
purchases cocoa from established suppliers but changing prices, supply conditions and
sustainability requirements require the organisation to reconsider aspects of its existing
purchasing arrangements. The first process step requiring attention is specification
and purchasing planning. Cape Harvest should reassess required volumes, quality,
sustainability and traceability requirements rather than simply continuing previous
quantities. The second is supplier search and evaluation. Existing and potential
suppliers should be compared according to price, capacity, reliability and compliance.
This is consistent with the purchasing process, which requires purchasing personnel to
add value and eliminate unnecessary risk throughout the purchasing cycle (Badenhorst-
Weiss et al., 2023). Ghana's expected 16% production decline for 2026/27 further
