Exam (elaborations) SCH4801 Supply Chain Management (SCH4801) Supply Chain Management

Please note that Assignment 02 consists of Section A and Section B.

ASSIGNMENT 2 MARKS BREAKDOWN
SECTION A 11 MARKS
SECTION B 34 MARKS
Technical presentation (cover page, declaration, page limit/layout
Grammar and guidelines follow as per section) 5 MARKS
TOTAL 50 MARKS



QUESTION 1.1
When an organization wants to improve their supply chain responsiveness, they need to
. [1]
[a] reduce supply chain relationships.
[b] use business process re-engineering.
[c] establish centralised warehouses.
[d] increase new product design cycles.

Read the following inventory list to answer questions 1.2 and 1.3 that follow. Inventory
list of the retail store, For the Home


Item Number in stock Price per unit Number of units
sold during June
2015
For the Home 140 R5 50
teaspoons
Early Morning 40 R100 5
toasters
King’s Kitchen 20 R10 000 3
refrigerator/freezer
combination
Total stock for the period – 200 items



QUESTION 1.2
Which of the following items can be classified as category A items according to ABC
analysis? [1]

[a] For the home teaspoons
[b] Early Morning toasters
[c] King’s Kitchen refrigerator/freezer combination
[d] The teaspoons and toasters




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, QUESTION 1.3
For the Home, teaspoons are classified as category according to ABC analysis and
represent per cent of all the stock items. [1]

[a] A; 10
[b] B; 20
[c] C; 70
[d] D; 5




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, KHUMBULA (remember)
to provide the reason for choosing that specific option and state the reason for each
of the other options why it is incorrect for questions 1.4 and 1.5.

QUESTION 1.4
In a typical supply chain, an upstream linkage will be on the side of the supply chain. [4]

[a] supplier
[b] end consumer
[c] focal firm
[d] outbound

Read the following case study and answer question 1.5


Woolworths set about transforming the cocoa used in their chocolate by sourcing UTZ-
certified cocoa. UTZ is a label and program for sustainable farming founded in the
Netherlands in 2002. The program promotes responsible cocoa growing and harvesting
practices that improve the quality and yield of cocoa while reducing the environmental
impact and improving the livelihoods of farmers and their families. UTZ is the world's most
extensive program for sustainable farming of coffee and cocoa, with its label featured on
over 10,000 product packages in more than 116 countries. The program addresses
various aspects such as social and living conditions, farm management, and the
environment to promote sustainability in cocoa farming.
Sources:
Woolworths 2020. Ethical sourcing. Online available from: https://www.woolworths.co.za/content/article/good-business-
journey/good-business-journey-ethical-sourcing/_/A-cmp205999 [Assessed: 2 May 2023]
UTZ Certified. 2023. Online available from: https://en.wikipedia.org/wiki/UTZ_Certified [Assessed: 2 May 2023]



QUESTION 1.5
What is the rationale for Woolworths using more than one cocoa supplier? [4]

[a] Cocoa suppliers with insufficient capacity should be engaged to reduce unit
prices to account for potential cocoa supply shortages.
[b] Long-term relationships should never be established with more than one cocoa
supplier adhering to Woolworths’ stringent quality requirements.
[c] Woolworths should purchase routine items, for example, chocolate wrapping
packaging, from more than one organisation.
[d] Buying from multiple cocoa suppliers is driven by Woolworth's goal of investing
in sustainable farming.
SECTION B; QUESTION 2




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