DISCLAIMER
The SCM JUNE EXAM 2023 is a generic document that helps students to compile their
own exam. Therefore, students can buy and submit since after one sell the document
shall be pulled down. Those who need further assistance must contact the given
details:
CONTACT NUMBER:
071 751 3144
EMAIL
,Table of Contents
QUESTION 1 ............................................................................................................................................ 3
Supply chain disruptions: .................................................................................................................... 3
Quality control and compliance: ......................................................................................................... 3
Price volatility:..................................................................................................................................... 4
Supplier relationship management:.................................................................................................... 4
Sustainability and ethical sourcing:..................................................................................................... 4
QUESTION 2 (20 MARKS) ........................................................................................................................ 6
QUESTION 3 (20 MARKS) ...................................................................................................................... 10
Preventive costs ................................................................................................................................ 10
Appraisal fees .................................................................................................................................... 10
Cost of internal failure ...................................................................................................................... 11
External failure costs ......................................................................................................................... 11
Lost opportunity cost ........................................................................................................................ 11
QUESTION 4 (20 MARKS) ...................................................................................................................... 13
Temperature Control ......................................................................................................................... 13
Speed and Efficiency ......................................................................................................................... 13
Safety and Hygiene............................................................................................................................ 14
Cost-effectiveness ............................................................................................................................. 14
Environmental Impact ....................................................................................................................... 14
QUESTION 5 (20 MARKS) ...................................................................................................................... 16
Quality and Consistency .................................................................................................................... 16
Reliability and Timeliness .................................................................................................................. 16
Financial Stability .............................................................................................................................. 16
Scalability and Capacity..................................................................................................................... 17
Ethical and Sustainable Practices ...................................................................................................... 17
Innovation and Collaboration ........................................................................................................... 17
Long-Term Relationship Building ...................................................................................................... 17
, QUESTION 1
Analyse any FIVE (5) challenges facing purchasing and supply management
making reference to Food Lovers in Durban, South Africa. Use practical
examples to support your answer.
Challenges facing purchasing and supply management in the context of Food Lovers
in Durban, South Africa can be diverse and multifaceted. In this analysis, I will address
five key challenges and provide practical examples to support each point.
Supply chain disruptions:
One of the significant challenges in purchasing and supply management is managing
supply chain disruptions. This issue can arise due to various factors such as natural
disasters, transportation disruptions, labour strikes, or political instability. These
disruptions can have a severe impact on the availability of products and the overall
operations of Food Lovers.
For instance, imagine a scenario where a major storm hits Durban and causes
widespread damage to infrastructure, including roads and ports. This situation can
disrupt the transportation of goods to Food Lovers' distribution centers, leading to
delays in the replenishment of stock and potential shortages of essential items. To
overcome this challenge, Food Lovers would need to have contingency plans in place,
such as alternative sourcing options or diversifying their supplier base, to mitigate the
impact of such disruptions.
Quality control and compliance:
Ensuring consistent quality control and compliance with regulatory standards is
another significant challenge in the purchasing and supply management of Food
Lovers. This challenge becomes more critical in the food industry, where the health
and safety of consumers are at stake. Food Lovers must carefully monitor and
evaluate the quality and safety of the products they source from suppliers.
For example, if a supplier fails to meet the required hygiene standards and delivers
contaminated or expired products, it can lead to customer complaints, legal issues,
and damage to the brand reputation of Food Lovers. To address this challenge, Food
Lovers should implement rigorous quality control processes, conduct regular audits of
their suppliers, and enforce strict compliance with food safety regulations.
The SCM JUNE EXAM 2023 is a generic document that helps students to compile their
own exam. Therefore, students can buy and submit since after one sell the document
shall be pulled down. Those who need further assistance must contact the given
details:
CONTACT NUMBER:
071 751 3144
,Table of Contents
QUESTION 1 ............................................................................................................................................ 3
Supply chain disruptions: .................................................................................................................... 3
Quality control and compliance: ......................................................................................................... 3
Price volatility:..................................................................................................................................... 4
Supplier relationship management:.................................................................................................... 4
Sustainability and ethical sourcing:..................................................................................................... 4
QUESTION 2 (20 MARKS) ........................................................................................................................ 6
QUESTION 3 (20 MARKS) ...................................................................................................................... 10
Preventive costs ................................................................................................................................ 10
Appraisal fees .................................................................................................................................... 10
Cost of internal failure ...................................................................................................................... 11
External failure costs ......................................................................................................................... 11
Lost opportunity cost ........................................................................................................................ 11
QUESTION 4 (20 MARKS) ...................................................................................................................... 13
Temperature Control ......................................................................................................................... 13
Speed and Efficiency ......................................................................................................................... 13
Safety and Hygiene............................................................................................................................ 14
Cost-effectiveness ............................................................................................................................. 14
Environmental Impact ....................................................................................................................... 14
QUESTION 5 (20 MARKS) ...................................................................................................................... 16
Quality and Consistency .................................................................................................................... 16
Reliability and Timeliness .................................................................................................................. 16
Financial Stability .............................................................................................................................. 16
Scalability and Capacity..................................................................................................................... 17
Ethical and Sustainable Practices ...................................................................................................... 17
Innovation and Collaboration ........................................................................................................... 17
Long-Term Relationship Building ...................................................................................................... 17
, QUESTION 1
Analyse any FIVE (5) challenges facing purchasing and supply management
making reference to Food Lovers in Durban, South Africa. Use practical
examples to support your answer.
Challenges facing purchasing and supply management in the context of Food Lovers
in Durban, South Africa can be diverse and multifaceted. In this analysis, I will address
five key challenges and provide practical examples to support each point.
Supply chain disruptions:
One of the significant challenges in purchasing and supply management is managing
supply chain disruptions. This issue can arise due to various factors such as natural
disasters, transportation disruptions, labour strikes, or political instability. These
disruptions can have a severe impact on the availability of products and the overall
operations of Food Lovers.
For instance, imagine a scenario where a major storm hits Durban and causes
widespread damage to infrastructure, including roads and ports. This situation can
disrupt the transportation of goods to Food Lovers' distribution centers, leading to
delays in the replenishment of stock and potential shortages of essential items. To
overcome this challenge, Food Lovers would need to have contingency plans in place,
such as alternative sourcing options or diversifying their supplier base, to mitigate the
impact of such disruptions.
Quality control and compliance:
Ensuring consistent quality control and compliance with regulatory standards is
another significant challenge in the purchasing and supply management of Food
Lovers. This challenge becomes more critical in the food industry, where the health
and safety of consumers are at stake. Food Lovers must carefully monitor and
evaluate the quality and safety of the products they source from suppliers.
For example, if a supplier fails to meet the required hygiene standards and delivers
contaminated or expired products, it can lead to customer complaints, legal issues,
and damage to the brand reputation of Food Lovers. To address this challenge, Food
Lovers should implement rigorous quality control processes, conduct regular audits of
their suppliers, and enforce strict compliance with food safety regulations.
