During the extended stage 6 loadshedding period

experienced at the beginning of 2023, many losses were experienced in the

poultry industry. Chickens could not be slaughtered when they reached the size

required by restaurants. Some slaughter facilities however used generators to

keep the slaughtering going, but that added an estimated 75c/kg on chicken

pieces. If the purchasing and supply manager of chicken for a restaurant chain purchases

from these slaughtering facilities with generators, what performance measure is

the most in jeopardy for the purchasing and supply department?

Answer the following questions on the left by choosing the correct option in the drop-down menu on the right.

Based on Example 3.1 (grey block) in the prescribed book, 8^th

edition, why might an organisation that has been using a successful purchasing

and supply process for years still need to reconsider its approach?

Study figure 2.3 in the prescribed book, 8^th

edition. Which one of the following statements regarding the structuring of

purchasing and supply is shown in the figure?

Read the scenario and answer the question: 

The Foschini Group (TFG) has used a

local cotton textile producer since they have reshored their clothing

manufacturing. The material has a lead time of 10 days from ordering until

delivered at the clothing manufacturing plant. TFG spends a substantial amount

per month with the cotton textile producer as cotton is used in many of the

clothing and furniture manufacturing. The purchasing process of cotton textile

happens effortlessly. TFG receives their invoices monthly where after the financial

manager signs it off.

Question

: Which one of the following reasons would

be behind TFG not following the steps of a purchasing process for cotton

textile meticulously?

The case study states that there is “an

increased demand for value offerings - that is not just a building, but a

greener building, with solar panels on the roof”. Green purchasing can

contribute to the environmental performance of dark stores. When seeking for

opportunities for greening the supply chain, under which supply chain area does

sunlighting, solar panels and indoor plants belong to?

The case study states the following: “Large South African retailers

whose centralised distribution centres are unable to handle end-user customer

deliveries are also opting for smaller dark stores in industrial locations near

suburban areas. In support, delivery companies are expanding their service

offering too. Uber, for example, is now delivering a range of items, not only

food takeaways”.

You decide on contracting a fleet of local scooters to do deliveries and

to select among potential scooter fleets you use the weighted point method. How

would your selection criteria be weighted?

“The Russian war

in Ukraine and the harsh Covid-19 shutdown in many industrial Chinese cities

has amplified supply chain vulnerabilities to such an extent that in March

2022, only 7% of sea shipments from Asia to North America arrived on time,

while 6% were on time for the Asia-to-Europe route”.

A local South

African hardware store has ordered a shipment of plastic covers, as well as

their most popular paint colour from Asia which travels through Europe to South

Africa. An organisation that is aware of the risk that their products might not

be delivered on time, needs to mitigate the risk of running out of stock.

Question

: Which one of the following actions would the hardware store most

likely include in their contingency plan?

The case study states

that “Large South African retailers whose centralised distribution centres are

unable to handle end-user customer deliveries are also opting for smaller dark

stores in industrial locations near suburban areas. In support, delivery

companies are expanding their service offering too. Uber, for example, is now

delivering a range of items, not only food takeaways.”

Which one of the following would form part of

the transition phase of the outsourcing decision that the dark store is about

to take?

The case study states that “historically, a landlord

would rent out a warehouse and leave the internal design and kitting out to the

tenant. Logistics providers are increasingly looking to allocate their capital

differently, rather than tying up large up-front amounts of working capital

into racking, shelving and design.” The high cost of remodelling a warehouse to

compete with other dark stores prompted some retailers to outsource their

warehousing function. Which one of the following options would favour the

outsourcing of the warehousing function?