MNP2601
ASSIGNMENT 2 SEMESTER 2 2026
UNIQUE NO.
DUE DATE: SEPTEMBER 2026
, MNP2601 Assessment 2 – Phase 1:
Question 1: Evaluating the purchasing and supply response
Cape Harvest Foods should use three measures. First, cost savings/price variance
should compare actual cocoa purchase prices with approved budgets and relevant
market prices. This will show whether purchasing is exploiting the current fall in cocoa
prices without exposing the business to excessive price risk. Cocoa prices fell sharply
during early 2026 as supply increased and demand weakened (Reuters, 2026a).
Second, supplier delivery performance should measure on-time, in-full deliveries
against contracted quantities. This is important because production interruptions could
occur if suppliers cannot maintain volumes during uncertain crop conditions. Third,
supplier quality and compliance performance should measure rejected
consignments, traceability coverage and compliance with environmental and labour
requirements. This is increasingly important because West African suppliers face
difficulties meeting EU traceability requirements (Reuters, 2026b). Together, the
measures assess cost, continuity and responsible sourcing (Badenhorst-Weiss et al.,
2023).
Question 2: Responding to a changed purchasing situation
Cape Harvest Foods faces a modified rebuy purchasing situation. The organisation
has an established requirement and existing suppliers, but changing prices, uncertain
future availability and increased sustainability requirements mean that existing
arrangements must be reconsidered rather than automatically repeated (Badenhorst-
Weiss et al., 2023). Two process steps require particular attention. Specification
should be reviewed to determine the required cocoa quality, volumes, delivery
requirements and traceability standards for the next crop. Supplier evaluation and
selection should then reassess existing suppliers and compare qualified alternatives on
price, capacity, reliability and responsible-sourcing capability. This is necessary
because Ghana expects cocoa production to decline by at least 16% in 2026/27
ASSIGNMENT 2 SEMESTER 2 2026
UNIQUE NO.
DUE DATE: SEPTEMBER 2026
, MNP2601 Assessment 2 – Phase 1:
Question 1: Evaluating the purchasing and supply response
Cape Harvest Foods should use three measures. First, cost savings/price variance
should compare actual cocoa purchase prices with approved budgets and relevant
market prices. This will show whether purchasing is exploiting the current fall in cocoa
prices without exposing the business to excessive price risk. Cocoa prices fell sharply
during early 2026 as supply increased and demand weakened (Reuters, 2026a).
Second, supplier delivery performance should measure on-time, in-full deliveries
against contracted quantities. This is important because production interruptions could
occur if suppliers cannot maintain volumes during uncertain crop conditions. Third,
supplier quality and compliance performance should measure rejected
consignments, traceability coverage and compliance with environmental and labour
requirements. This is increasingly important because West African suppliers face
difficulties meeting EU traceability requirements (Reuters, 2026b). Together, the
measures assess cost, continuity and responsible sourcing (Badenhorst-Weiss et al.,
2023).
Question 2: Responding to a changed purchasing situation
Cape Harvest Foods faces a modified rebuy purchasing situation. The organisation
has an established requirement and existing suppliers, but changing prices, uncertain
future availability and increased sustainability requirements mean that existing
arrangements must be reconsidered rather than automatically repeated (Badenhorst-
Weiss et al., 2023). Two process steps require particular attention. Specification
should be reviewed to determine the required cocoa quality, volumes, delivery
requirements and traceability standards for the next crop. Supplier evaluation and
selection should then reassess existing suppliers and compare qualified alternatives on
price, capacity, reliability and responsible-sourcing capability. This is necessary
because Ghana expects cocoa production to decline by at least 16% in 2026/27
