SCH4801 Assignment 3 (COMPLETE ANSWERS) Semester 2 2025 – DUE 10 October 2025 ; 100% correct solutions and explanations.

SCH4801 Assignment 3 (COMPLETE ANSWERS) Semester 2 2025 – DUE 10 October 2025 ; 100% correct solutions and explanations.SECTION A: QUESTION 1 Section A (question 1) consists of short essay-type questions based on the case study – Toyota South Africa’s Supply Chain Challenges: A case study in disruption and resilience. MASTER THIS ASSESSMENT Before taking this assessment, ensure that you have studied the relevant content. You must study chapters/learning units 9 to 19 to understand the concepts. Merely trying to find the answers to the assessment questions by hastily scanning the content will ultimately not be to your advantage. If you do this, you will not acquire the necessary depth of understanding to answer the questions in the field of study which you will need to answer in the examination. The examination duration also does not allow time to consult the study material. Please read the case study below before answering questions 1.1 to 1.3. Toyota South Africa's Supply Chain Challenges: A Case Study in Disruption and Resilience Toyota South Africa is a leading automobile manufacturer in the region, with its supply chain serving as a critical component of the company's value chain. This ensures that vehicles are produced to the highest quality standards based on incoming orders. This supply chain involves sourcing raw materials and high-quality components from global suppliers (Japan, North America, Europe, and Asia) and local suppliers, assembling vehicles, storing them in warehouses, and distributing them to customers through various logistical channels. Toyota believes in fostering close, long-term supplier relationships and presents yearly awards to suppliers who exceed performance targets. For example, Keiper received an award for their rear seat assembly locks, TAC Manufacturing for their shift lever knobs, Tenneco for exhaust components, and Samsung Electronics for the Car Mode App, which connects Samsung smartphones to Toyota radios. Moreover, Toyota focuses on eliminating waste and maintaining high efficiency by applying 'The Toyota Production System' (TPS) as its manufacturing philosophy. TPS enables Toyota South Africa to produce vehicles at a pace aligned with market demand, giving it a competitive advantage over its competitors. However, the complexity of modern supply chains makes them vulnerable to disruptions, which can severely impact operations. Component Shortage Disruption (2019) In 2019, Toyota South Africa faced a significant disruption due to a shortage of key manufacturing components. The issue arose from the company's over-reliance on a single 03/2025 supplier, Auto Parts South Africa (ASA), based in Durban. A large-scale strike by ASA's employees halted the production of essential parts, including brake pedals, catalytic converters, and fuel tanks, affecting critical models such as the Corolla, Fortuner, and Hilux—the latter being the company's best-selling model. This resulted in the loss of approximately 6,000 vehicles, as production of 500 vehicles per day stopped, with sales of the Hilux being particularly affected. To address the shortage, Toyota reduced production capacity, temporarily laid off workers, and sought new suppliers. This process required significant resources from the purchasing department and took time, as onboarding new suppliers involved logistical challenges. Impact of Flooding on Operations (2022) In 2022, severe flooding in the KwaZulu-Natal region, particularly in Durban, further disrupted Toyota's operations. Toyota's competitors saw this as an opportunity to enhance their market share, as various Toyota customers, including Hertz, Avis (a rental company), Toyota dealers, commercial fleet organisations, and government entities, might need to wait for their special orders. The Prospecton plant suffered extensive damage, with approximately 88% of the vehicles on-site destroyed and production lines severely impacted. Beyond the plant, the floods disrupted the movement of automotive parts and finished vehicles, as the port of Durban, a key logistical hub, experienced delays due to congestion. Toyota reported losses of about 45,000 vehicles, with many new cars rendered unusable due to flood damage. Although port operations resumed quickly, supply chain delays persisted, affecting import and export schedules. Climate change impact Climate change profoundly impacts the environment, resulting in