MNP3701 Assignment 5 (QUESTIONS & ANSWERS) Semester 1 2023; LATEST UPDATE

QUESTION 1 [3 MARKS] Explain the difference between a value chain and a supply chain. Provide specific examples from the operations of Toyota South Africa to illustrate the difference. In your answer, you should demonstrate a critical understanding of the interrelated activities involved in each chain and how they contribute to the creation and delivery of value to customers. QUESTION 2 [10 MARKS] As an expert in supply chain risk management, you have been tasked by Toyota South Africa to aid them in conducting an extensive risk assessment. Your task: Develop a comprehensive risk management plan for Toyota South Africa. Your plan should include a critical analysis of five potential sources of risk that may arise in Toyota’s supply chain [5]. You should also provide recommendations for mitigating each identified risk [5]. Your risk management plan should be well structured and based on theory from the prescribed book. Note: you may refer to the risks that Toyota South Africa encountered as described in the case study. However, it's also important to identify additional risks that are not discussed in the case study but that would be applicable to Toyota South Africa. QUESTION 3 [9 MARKS] The Hilux pickup truck is one of Toyotas’ best-selling motor vehicles. Assist the supply chain manager of Toyota in conducting a cost analysis of their Hilux GR-Sport Double Cab pickup truck. Use the following information to compare the cost markup pricing model [4] with the margin pricing model [4] based on the total cost principle. Based on your findings, suggest which pricing model would yield the highest returns for Toyota [1]. Toyota Hilux GR-Sport Double Cab pickup truck product cost (per pickup truck) R500 000 Shipping and logistics cost (per pickup truck) R 18 000 Import taxes, tariffs and VAT (per pickup truck) R 48 000 Marketing and advertising costs (per pickup truck) R 2 000 Research and development cost (directly related to the manufacturing of the Toyota Hilux GR-Sport Double Cab pickup truck) R700 Number of Toyota Hilux GR-Sport Double Cab pickup trucks produced 1300 Ideal profit percentage 27% MNP3701_ASSIGNMENT 5_SEMESTER 1_2023 10 QUESTION 4 [4 MARKS] Toyota South Africa is considering the production of a new hybrid vehicle, the Toyota EcoCar. As a consultant specialising in the automotive industry, you have been tasked with assisting Toyota with the cost management and planning for the new vehicle. Toyota has estimated the following costs: Fixed costs R2,000,000 per year Variable costs R20,000 per unit Selling/Purchase price R35,000 per unit Anticipated purchase volume 500 units a) Suppose Toyota South Africa sells 500 EcoCars in a year; what would its total profit be? [2] b) Calculate the number of EcoCars Toyota South Africa needs to produce to break even. [2] QUESTION 5 [4 MARKS] Consider the below excerpt of a spend analysis conducted by Toyota South Africa regarding their raw material category. Make two recommendations for improvement to their raw materials category. Supplier Category: Raw materials Total spend per supplier Auto Parts SA ZAR 40,000,000 Safe Brake SA ZAR 20,000,000 LUK Repco SA ZAR 10,000,000 HOLTS Rad SA ZAR 5,000,000 BEHR Ech SA ZAR 5,000,000 QUESTION 6 [8 MARKS] Toyota South Africa is currently developing a new hybrid vehicle called the EcoCar. During this process, they have shared some design and manufacturing information with a supplier who produces critical components such as the car’s battery system. However, Toyota is concerned about safeguarding its investment and any unique technologies used in its production. As a procurement law expert, they have turned to you to seek advice on how to protect their confidential information. Use the following sub-headings to guide them: a) Start your engagements with Toyota South Africa by explaining the basic terms of your consulting contract. Use specific examples relevant to Toyota and the scenario provided above to set the terms of your contract. [2] b) Start your risk assessment by identifying the classification of the supplier in this scenario. Provide a well-reasoned answer for your classification. [2] c) Recommend two legal avenues that Toyota South Africa can utilise to safeguard the unique technologies employed in producing their EcoCar. Conduct independent research on the regulations and procedures associated with each of your recommended legal avenues and how they apply within the South African context. [4]