MNP3701_ASSESSMENT 5_2023_SEMESTER 1 SUGGESTED SOLUTIONS (DUE DATE: 18 MAY 2023)
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MNP3701 - Strategic Sourcing
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University Of South Africa (Unisa)
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 cont...
mnp3701assessment 52023semester 1 suggested solutions due date 18 may 2023
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University of South Africa (Unisa)
MNP3701 - Strategic Sourcing
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MNP3701 – ASSIGNMENT FIVE
COVER PAGE
STRATEGIC SOURCING
STUDENT NUMBER
DECLARATION
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, Table of Contents
1.1. 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. 4
2.1. Discuss 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]. 5
3.1. 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]. 7
4.1. 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: 8
5.1. 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. 10
6.1. 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
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