ASSIGNMENT NO.2 YEAR 2023
SCH4801: SUPPLY CHAIN MANAGEMENT
PERIOD: 2023
, Table of Contents
SECTION A ............................................................................................................................................. 3
QUESTION 1 ........................................................................................................................................... 3
SECTION B ............................................................................................................................................. 7
2.1. What would be the competitive strategy and supply chain strategy for Woolworth?
Motivate your answer with relevant examples from the case study. ............................................ 7
2.2. What influences do overstock, and understocking have on the optimal level of product
availability in a retailer environment such as Pick n Pay? How does this impact a retailer's
supply chain inventories and profitability? ........................................................................................ 7
2.3. Considering a supply chain of modular kitchen manufacturers who use postponement
methods to design and install them. What would allow the chain to deliver a modular kitchen
to a client in a reasonable period? How does this approach affect safety inventories, product
differentiation, and responsiveness in the supply chain?............................................................... 8
2.4. Explain a leagile supply chain by referring to a fast-food retail outlet, such as
Kentucky Fried Chicken. Ensure that you include the push-pull boundary in your explanation.
9
2.5. Answer the following sub-questions regarding the bullwhip effect. ................................ 10
a) Briefly discuss with a relevant example which, or when, will a supply ............................... 10
b. Provide and discuss two suggestions with relevant examples of how the bullwhip effect
can be mitigated in a supply chain. Please be specific with your suggestions......................... 11
2.6. Nederburg Wines is one of South Africa’s well-known wineries; most of their wines
are available in our local retailers. Draw a basic supply chain for Nederburg Wines. Please
note that the supply chain should include a first-tier supplier and a first and second tier-
customer and the three flows. [No marks for Google images. Drawing should be your
drawing]. .............................................................................................................................................. 12
2.7. Assume that you are the supermarket operator. Would you hold more safety inventory
for a newly introduced or existing detergent? Motivate your answer with a relevant
discussion. ........................................................................................................................................... 13
2.8. Discuss why the supply chain strategy should be aligned with the corporate strategy
with a relevant example? .................................................................................................................. 13
2.9. For retailers, the best type of relationship with their suppliers would be a collaborative
relationship. Do you agree or disagree with this statement? Motivate your answer with a
relevant reason/example in your brief discussion. ........................................................................ 15
, SECTION A
QUESTION 1
QUESTION 1.1
When an organisation wants to improve their supply chain responsiveness, they need
to ___. select the correct answer below. Then you must explain why the other options
are incorrect.
[a] reduce supply chain relationships.
[b] use business process re-engineering.
[c] establish centralised warehouses.
[d] increase new product design cycles.
Answer: [b] use business process re-engineering.
Explanation:
Supply chain responsiveness refers to the ability to react quickly to changes in demand
or other variables that affect the logistics processes. To improve their supply chain
responsiveness, organisations need to use business process re-engineering (BPR),
which is a method of redesigning and streamlining the business processes to eliminate
waste, improve efficiency, and enhance customer value.
The other options are incorrect because:
[a] Reducing supply chain relationships may reduce the complexity and cost of
managing multiple suppliers, but it may also reduce the flexibility and agility of the
supply chain. Having fewer suppliers may limit the options and alternatives available
to respond to changing customer needs or market conditions. Therefore, reducing
supply chain relationships may not improve the supply chain responsiveness, but
rather increase the risk of disruption.
SCH4801: SUPPLY CHAIN MANAGEMENT
PERIOD: 2023
, Table of Contents
SECTION A ............................................................................................................................................. 3
QUESTION 1 ........................................................................................................................................... 3
SECTION B ............................................................................................................................................. 7
2.1. What would be the competitive strategy and supply chain strategy for Woolworth?
Motivate your answer with relevant examples from the case study. ............................................ 7
2.2. What influences do overstock, and understocking have on the optimal level of product
availability in a retailer environment such as Pick n Pay? How does this impact a retailer's
supply chain inventories and profitability? ........................................................................................ 7
2.3. Considering a supply chain of modular kitchen manufacturers who use postponement
methods to design and install them. What would allow the chain to deliver a modular kitchen
to a client in a reasonable period? How does this approach affect safety inventories, product
differentiation, and responsiveness in the supply chain?............................................................... 8
2.4. Explain a leagile supply chain by referring to a fast-food retail outlet, such as
Kentucky Fried Chicken. Ensure that you include the push-pull boundary in your explanation.
9
2.5. Answer the following sub-questions regarding the bullwhip effect. ................................ 10
a) Briefly discuss with a relevant example which, or when, will a supply ............................... 10
b. Provide and discuss two suggestions with relevant examples of how the bullwhip effect
can be mitigated in a supply chain. Please be specific with your suggestions......................... 11
2.6. Nederburg Wines is one of South Africa’s well-known wineries; most of their wines
are available in our local retailers. Draw a basic supply chain for Nederburg Wines. Please
note that the supply chain should include a first-tier supplier and a first and second tier-
customer and the three flows. [No marks for Google images. Drawing should be your
drawing]. .............................................................................................................................................. 12
2.7. Assume that you are the supermarket operator. Would you hold more safety inventory
for a newly introduced or existing detergent? Motivate your answer with a relevant
discussion. ........................................................................................................................................... 13
2.8. Discuss why the supply chain strategy should be aligned with the corporate strategy
with a relevant example? .................................................................................................................. 13
2.9. For retailers, the best type of relationship with their suppliers would be a collaborative
relationship. Do you agree or disagree with this statement? Motivate your answer with a
relevant reason/example in your brief discussion. ........................................................................ 15
, SECTION A
QUESTION 1
QUESTION 1.1
When an organisation wants to improve their supply chain responsiveness, they need
to ___. select the correct answer below. Then you must explain why the other options
are incorrect.
[a] reduce supply chain relationships.
[b] use business process re-engineering.
[c] establish centralised warehouses.
[d] increase new product design cycles.
Answer: [b] use business process re-engineering.
Explanation:
Supply chain responsiveness refers to the ability to react quickly to changes in demand
or other variables that affect the logistics processes. To improve their supply chain
responsiveness, organisations need to use business process re-engineering (BPR),
which is a method of redesigning and streamlining the business processes to eliminate
waste, improve efficiency, and enhance customer value.
The other options are incorrect because:
[a] Reducing supply chain relationships may reduce the complexity and cost of
managing multiple suppliers, but it may also reduce the flexibility and agility of the
supply chain. Having fewer suppliers may limit the options and alternatives available
to respond to changing customer needs or market conditions. Therefore, reducing
supply chain relationships may not improve the supply chain responsiveness, but
rather increase the risk of disruption.
