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MNP2601 - ASSESSMENT 6 - QUESTIONS AND ANSWERS - SEMESTER 2 - 2024
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2024 – S1 – MNP2601 – ASSESSMENT 6 – Q&AAssessment 6
Started on Sunday, 26 May 2024,
State Finished
Completed on Sunday, 26 May 2024,
Time taken
Marks 30.00/30.00
Grade 100.00 out of 100.00
Question 1
Distribution management entails managing the outbound … processes in a basic
supply chain.
purchasing
downstream
upstream
focal firm’s
Feedback
The correct answer is:
downstream
Question 2
Why would a newly established organisation opt for standardisation in purchasing
and supply decisions?
Because more storage space is available for standardised products in new buildings.
1
,2024 – S1 – MNP2601 – ASSESSMENT 6 – Q&A
Because less inventory is generally required for standardised products when newly
established.
Because higher levels of standardised items will lead to economies of scale if bought
from the right supppliers.
Because the process of buying standardised items is less complicated, purchasers
shy away from non-standardised items.
Feedback
The correct answer is: Because less inventory is generally required for standardised
products when newly established.
Question 3
Why would an organisation refrain from buying from a distributor?
Marketing services such as transport, storage, re-ordering, financing and assistance
with promotions and advertisements (if the purchasing organisation is a retailer or a
provider of final products) are provided.
Given the variety of related products that are stocked by distributors, system
contracts (also called blanket or open contracts) can be entered in order to reduce
administration and stockholding.
Dispersed locations of warehouses of many distributors in the market may extend
lead times and better after-sales service is possible.
Owing to the greater variety, the purchasing organisation has a wider choice of style,
quality, colour, packaging and finish.
Feedback
The correct answer is:
Dispersed locations of warehouses of many distributors in the market may extend
lead times and better after-sales service is possible.
2
,2024 – S1 – MNP2601 – ASSESSMENT 6 – Q&A
Question 4
Janet owns an organisation producing different types of canned sardines in
Mombasa on the Kenyan coast. She sells her products directly throughout Kenya
and to larger exporters. In her drive to add value, she wants to distinguish between
value-added activities and non—value added activities. What would be an example
of value-added activities?
Monitoring the time spent on inspecting ordered olive oil.
Using organically grown olive oil in the canned sardines.
Communicating with the producers of organically grown olive oil to verify their
processes.
Setting up the canning equipment to use brine instead of oil.
Feedback
The correct answer is:
Using organically grown olive oil in the canned sardines.
Question 5
Woolworths strives to have home, fashion and beauty products readily available to
customers; therefore, replenishments to retail stores are made regularly by
considering customer demand. Woolworths’ purchasing and supply team wants to
maintain an optimum balance of inventory in retail stores, which means that …
inventory costs should be minimised, while customers are satisfied.
inventory items are bought from local suppliers who can deliver.
inventory is distributed to retail stores closest to customers
inventory management techniques are implemented if benefits outweigh costs.
Feedback
3
, 2024 – S1 – MNP2601 – ASSESSMENT 6 – Q&A
The correct answer is: inventory costs should be minimised, while customers are
satisfied.
Question 6
Unofficial reports and rumours have made you (as a purchasing and supply official)
increasingly doubtful that your main supplier adheres to sound ethical and socially
responsible behaviour. Since your organisation takes these issues very seriously,
you have decided to put together a task team to audit the supplier in question. Which
one of the following audit findings contributes positively towards rating the supplier
as ‘ethical’?
Suppliers’ assembly workers are encouraged to cover up defects that they come
across, since not all defects are serious.
The supplier does not report all its CO² emissions to environmental authorities, since
current legislation still has many loopholes.
Suppliers’ workers are dedicated and are therefore made to work longer hours to
earn much needed extra income.
The supplier has a code of ethics to guide their employees’ actions in all situations,
even in some grey areas of ethical conduct.
Feedback
The correct answer is: The supplier has a code of ethics to guide their employees’
actions in all situations, even in some grey areas of ethical conduct.
Question 7
Uber is a ride-hailing company that offers the Uber mobile app, which you can use to
submit a trip request that is automatically sent to an Uber driver near to you, alerting
the driver to your location. The accepting Uber driver will then come and pick you up
and drive you to your requested destination. Uber drivers able to sell more rides to
passengers by focusing on improved customer lead time since they ...
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