Question 1
ASSIGNMENT QUESTIONS
THE FIGURE BELOW DEPICTS A STRUCTURE OF A GENERIC SUPPLY CHAIN.
USING THE FIGURE, ANSWER QUESTIONS 1- 8.
Question 1
Given that the supply chain illustrated above is made up of:
a. Raw Materials Supplier
b. Components Manufacturer
c. A firm that manufacturers Sub-assemblies
d. End Item Manufacturer
e. Wholesale Distributor
f. Local Retail Chain Warehouse
Who is considered the End Product Manufacturer’s second tier supplier?
[1] Raw Materials Supplier
[2] Components Manufacturer
[3] The final end item consumer
[4] Wholesale Distributor
Option 2 is the correct answer.
Component manufacturers are the end item manufacturer’s second tier suppliers. Options 1 is
the raw material suppliers while options 3 and 4 are part of the outbound supply chain (Refer to
page 6 in the prescribed textbook).
Question 2
The term ‘Supply Chain Management’ and the field of study it represents today have
emerged in the:
[1] 1960’s
,[2] 1970’s
[3] 1980’s
[4] 1990’s
Option 3 is the correct answer.
In the 1960s, it was mass production era, in 1970s; computer technologies such as MRP began
to flourish. In the 1990s, it was intensified competition (globalisation) (Refer to page 12 in the
prescribed textbook).
Question 3
The elements of supply chain management pose certain critical issues for the success
of organisations. Which one of the following options represents “the FOUR important
elements of the supply chain”?
[1] Purchasing, operations, distribution, integration
[2] Purchasing, manufacturing, transportation, retail stores
[3] Purchasing, manufacturing, distribution, transportation
[4] Purchasing, operations, manufacturing, distribution
Option 1 is the correct answer.
Option 1 is the correct answer as it contains all the important elements of supply chain
management. Options 2, 3, and 4 are incorrect as they contain manufacturing, transportation
and retail stores which are not important supply chain management elements (Refer to page 15
in the prescribed textbook).
Question 4
Based on the figure illustrated above, which one of the following could be an example of
an organisation that has a vertically integrated supply chain?
[1] A computer manufacturer that acquires (takes over) a computer components
supplier.
[2] A computer manufacturer that acquires (takes over) warehouses to aid in its
product distribution.
[3] A computer components supplier that begins to assemble computers
for sale to consumers.
[4] All of the above.
Option 4 is the correct answer: page 5-6
Option 4 is the correct answer. Vertically integrated firms have business boundaries
with one time suppliers and or customers. A computer manufacturer that acquires its
computer components supplier (option 1); a computer manufacturer that acquires
warehouses to aid in its product distribution (option 2) as well as a computer
components supplier that begins to assemble computers for sale to consumers (option
3) are all correct.
Question 5
A supply chain system whose objectives are to create a fast, flexible system capable of
delaying final assembly until customers actually place orders is called a:
[1] Push-type production system
, [2] Pull-type production system
[3] ERP system
[4] Re-integrated production system
Option 2 is the correct answer.
Pull-type production system can referred to a supply chain system whose objectives are to
create a fast, flexible system capable of delaying final assembly until customers actually place
orders (Refer to page 260 in the prescribe textbook).
Question 6
Operating a successful business requires organisations to develop an effective supply
chain. Which one of the following statements regarding supply chain management is
correct?
[1] Supply chain management was invented by the auto manufacturing industry.
[2] Purchasing is seen as the final and most difficult step in the supply chain.
[3] Service response logistics is the digital distribution of services.
[4] Strategic partnerships are seen as one of the foundations of supply chain
management.
Option 4 is the correct answer.
Strategic partnerships are one of the foundations of supply chain management. The philosophy
involves suppliers having close working relationships with customers. The other statements are
false. Supply chain management was not invented by the automotive industry, purchasing is not
the final step in the supply chain as well as service logistics is not the digital distribution of
services (Refer to page 15 in the prescribed textbook).
MNP3702/20
1
Question 7
Successful modern supply chain management typically includes the practice of:
[1] Sharing information between supply chain partners.
[2] Keeping high inventories throughout the supply chain.
[3] Always purchasing materials with the lowest per unit cost.
[4] Ensuring leadership by issuing ultimatums to supply chain partners.
Option 1 is the correct answer.
Supply chain management basically involves managing the relationship in a supply chain. It
involves movement and sharing information across the supply chain. In a modern supply chain,
inventory needs to be kept to a minimum while minimising cost using as well as collaboration
with the supply chain partners (Refer to page 7 & 8 in the prescribed textbook).
Question 8
Which one of the following indices provided by the Institute for Supply Management
(ISM) is considered the most important by economists because it is a composite of
five weighted, seasonally adjusted indices?
[1] Purchasing Managers Index
[2] Export Orders Index
[3] Production and Inventory Index
, [4] New Orders Index
Option 1 is the correct answer.
Purchasing Managers Index is the most important index developed by Theodore Torda, a
senior Economist of the US Department of Commerce, introduced in 1982 (Refer to page 140 in
the prescribed textbook).
READ THE CASE SCENARIO ON ENTERPRISE RESOURCES PLANNING
(ERP)“ AND ANSWER QUESTIONS 9 TO 15.
KEY KNOWLEDGE CHALLENGES IMPACTING AN ERP
IMPLEMENTATION IN AN EMERGING ECONOMY CONTEXT
Enterprise Resource Planning systems (ERP) allow organisations to integrate
various processes across different functional areas in an attempt to increase
productivity, efficiency and to sustain their competitive edge. Many large
organisations are now dependent on ERP systems for their daily operations. In
order to differentiate themselves from their competitors and to integrate their
processes, a number of small medium enterprises (SMEs) have also invested in
ERP systems. Similarly, an increasing number of organisations are investing in
ERP systems in South Africa. System Application Products in Data Processing
(SAP) and Oracle are prominent ERP providers in the business environment.
There have been many implementations in the South African public sector, such
as the SAP implementations at the City of Cape Town and Tshwane
Metropolitan Council. The implementation process is however described as
costly, complex and risky whereby organisations are not able to derive benefits
of the systems despite huge investments. Half of all ERP implementations fail to
meet the adopting organisation’s expectations. With ERP adoption, comes the
requirement of adapting work practices to the global processes inherent in the
ERP system. This requires the organisation to undergo a major transformation;
users have to come to terms with the organisational changes, new ways of work
and unlearn previous practices.
Source: http://www.ibimapublishing.com/journals/JSABR/2014/252895/252895.pdf
Question 9
Based on the case study, which one of the following is forecasting software that can be
used by the City of Cape Town in planning and managing their supply chain decisions?
[1] Cloud-based management systems
[2] Business forecast systems
[3] Human resources management systems
[4] Lean management systems
Option 2 is the correct answer.
Business forecast system helps supply chains of organisations to improve their planning, cut
inventory costs and decrease stockouts by improving the accuracy of their forecasts (Refer to
page 154 in the prescribed textbook).
Question 10
