The Covid pandemic created chaos. Which one of the following statements

is a misconception regarding the purchasing and supply process during the

pandemic?

Being a supporter of “local is lekker”, the grocery store you are

employed at adopted the strategy of sourcing from local known suppliers. As

time passed, several suppliers were added onto the organisation’s preferred

supplier list. As a purchasing and supply manager, which one of the following

options best describes the purchasing situation at the grocery store when

reordering from a local supplier?

“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 buffer-oriented technique would be the best option for the

hardware store?

“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 put a contingency plan in place to mitigate the

risk of running out of stock.

Question

: What should be performed first by the organisation before a

contingency plan is done?

A dark store is considering implementing a strategic sourcing approach.

You have applied to lead the pilot project, and to review your insight you have

been asked to indicate how you would categorise the following suppliers:

Southern Packaging

: provider of packaging

material and shipping cartons

Artisanal Meat Supplies CC

: supplier that provides the retailer's branded preserved meat

packets that are sent as gifts to regular customers on their birthdays

Which one of the following statements is a misconception

regarding purchasing and supply performance evaluation in times of crises, such

as the Covid-19 pandemic.

The case

study mentions attacks in the Suez Canal and the effect of climate change on

the Panama Canal. This has influenced global shipping routes. In the aftermath of recent attacks in the Red Sea, vessels

are opting to bypass the Suez Canal and navigate around South Africa's Cape of

Good Hope. This shift has disrupted the crucial global shipping routes,

compelling ships to add another 15 days to their journeys, accompanied by

increased costs. These cargo delays and increased delivery times will

influence supplier selection and assessment. Look at figure 5.2 in the

prescribed book. Due to the above scenario the evaluation criteria change as

follows:

On-time delivery (15)

Fill-rate (0)

Cost reduction materials (5)

Cost reduction transport (20)

Question

: The organisation performing the weighted point method on

figure 5.2 placed the highest weight on quality. What effect did the changes in

evaluation criteria, cost and delivery, had on the overall outcome of the determining

the best supplier.

The case

study mentions attacks in the Suez Canal and the effect of climate change on

the Panama Canal. This has influenced global shipping routes. In the aftermath of recent attacks in the Red Sea, vessels

are opting to bypass the Suez Canal and navigate around South Africa's Cape of

Good Hope. This shift has disrupted the crucial global shipping routes,

compelling ships to add another 15 days to their journeys, accompanied by

increased costs. These cargo delays and increased delivery times will

influence supplier selection and assessment. Look at figure 5.2 in the

prescribed book. Due to the above scenario the evaluation criteria change as

follows:

On-time delivery (15)

Fill-rate (0)

Cost reduction materials (5)

Cost reduction transport (20)

Question: Which supplier is now the least preferred overall?

Assume

a small mushroom grower supplies mushrooms to a fast-food retail chain. What is

the current perspective on formulating a policy regarding captive suppliers, potentially

making the mushroom grower dependent on the fast-food chain buyer for its continued

existence?

The

prescribed book states that organisations should have supply policies addressing

the issue of sustainability and showing preference for sustainable suppliers.

Purchases should be made with great caution and the three main aspects – social

development, economic sense and environmental protection – should be considered

when making every purchase. Considering the effect of load shedding on mushroom

scarcity in South Africa since April 2023, how should purchasing decisions be

approached within the relationship between a mushroom grower and a fast-food

retail chain, considering social development, economic sense, and environmental

protection?