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,9/29/25, 2:52 PM Assessment 2 (page 2 of 16)
MNP2602-25-S2 Assessment 2
QUIZ
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Question 1
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By definition, ______ management would entail managing the downstream
processes in the supply chain from the end of the production line to the end
customer.
a. strategic sourcing
b. distribution
c. warehouse
d. purchasing
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Question 2
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Which one of the following best reflects the concept of Total Cost of Ownership
(TCO) in strategic procurement decisions?
The initial purchase price of a product, excluding any maintenance,
operational, or disposal costs.
The comprehensive assessment of all direct and indirect costs associated
with acquiring, operating, maintaining, and disposing of a product or
service over its entire lifecycle.
The total invoiced amount paid to the supplier, including taxes and delivery
fees.
The cost of labour and utilities involved in the daily use of a product by the
end user.
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, 9/29/25, 2:52 PM Assessment 2 (page 3 of 16)
MNP2602-25-S2 Assessment 2
QUIZ
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Question 3
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A South African manufacturing organisation is looking to improve its
operations. Which approach best reflects the principles of lean philosophy in
optimising their production process?
Increasing production capacity by maintaining higher inventory levels at
each stage of the process, ensuring that the organisation can continue
producing without interruptions.
Focusing on streamlining processes through automation to reduce the
need for manual labour and increase output, even if it results in higher
upfront costs.
Focusing on increasing production output by adding additional machinery
and expanding factory space to meet potential future demand, regardless
of current customer orders.
Reducing production time by improving work processes and removing
unnecessary steps in the manufacturing process to increase overall
efficiency and reduce costs.
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