, SCH4801 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 30 June 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
SECTION A: QUESTION 1 QUESTIONS 31 MARKS
1.1 Inventory-related decisions:
Procurement managers at Toyota might, in future, only source 40% from
local suppliers and 60% from global suppliers, which might impact their
inventory decisions. To balance efficiency and responsiveness, evaluate any
three key inventory categories relevant to Toyota with possible trade-offs
for each. [9]
1.1 Inventory-Related Decisions
As Toyota South Africa (TSA) considers adjusting its sourcing strategy
to rely 40% on local suppliers and 60% on global suppliers, the
company must carefully evaluate how this shift will affect its inventory
strategy. Balancing efficiency (cost control) with responsiveness
(meeting demand quickly) is critical. The following are three key
inventory categories relevant to Toyota, along with the possible trade-
offs for each:
1.1.1 Raw Material Inventory
Definition & Relevance:
Raw materials include metals, plastics, and other base materials required
before component manufacturing. For TSA, a shift to more global
sourcing may lengthen lead times, increasing the need for higher safety
stock levels.
Semester 1 2025 - DUE 30 June 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
SECTION A: QUESTION 1 QUESTIONS 31 MARKS
1.1 Inventory-related decisions:
Procurement managers at Toyota might, in future, only source 40% from
local suppliers and 60% from global suppliers, which might impact their
inventory decisions. To balance efficiency and responsiveness, evaluate any
three key inventory categories relevant to Toyota with possible trade-offs
for each. [9]
1.1 Inventory-Related Decisions
As Toyota South Africa (TSA) considers adjusting its sourcing strategy
to rely 40% on local suppliers and 60% on global suppliers, the
company must carefully evaluate how this shift will affect its inventory
strategy. Balancing efficiency (cost control) with responsiveness
(meeting demand quickly) is critical. The following are three key
inventory categories relevant to Toyota, along with the possible trade-
offs for each:
1.1.1 Raw Material Inventory
Definition & Relevance:
Raw materials include metals, plastics, and other base materials required
before component manufacturing. For TSA, a shift to more global
sourcing may lengthen lead times, increasing the need for higher safety
stock levels.
