Case Study

PROGRAMME Bachelor of Commerce in Supply Chain Management

MODULE Modern Perspectives of Purchasing Management (Purchasing Management)
YEAR Three (3)
INTAKE January 2024 Semester 1
MARKS 30
Read the statement below and answer the two questions that follow:

ELEMA GATEAU, a leading player in the baking industry, faced challenges in maintaining product quality while optimizing
costs. The company's leadership recognized the need to revise their buying strategies to strike a balance between
acquiring high-quality components and managing expenses efficiently. ELEMA GATEAU has two main challenges. The first
challenge is that the costs of raw materials and components were escalating, impacting the profit margins. The second
challenge is of inconsistencies in the quality of supplied materials were affecting the final product's reliability.

You are employed by ELEMA GATEAU to assist with the implementation of a buying strategy that prioritizes product quality
without compromising cost-effectiveness. Answer the following two questions based on the above statement.

QUESTION ONE [20 MARKS]

Critique any five most important types of costs applicable to quality that ELEMA GATEAU should be aware of. Use practical
examples to justify your answer.

QUESTION 2 [10 MARKS]

The decision on the amount to purchase and when to do so, logically follows the necessary explanation. Typically, the
response is " “Buy what you require when you require it" However, there are a lot of considerations for this choice.
Examine the 5 main factors that ELEMA GATEAU will consider when deciding on the amount and when to purchase its raw
materials.

INSTRUCTIONS TO STUDENTS
• 6 pages’ maximum include cover page, contents introduction body conclusion and reference page.
• Your assignment must include a table of contents page
• Text: Arial or Times New Roman, Font Size: 12, Spacing: 1.5 lines. All text must be justified at each margin.
• References – At least 5 academic sources of reference must be used. (These include textbooks, journal articles and
internet sources that are relevant to your field of study. Academic sources do not include Wikipedia and blogs). The
MANCOSA study guide must not be used as a source of reference. You must include Reference list at the end of your
assignment. Information quoted/paraphrased from sources listed in your Reference list must be referenced in-text. The
Harvard system of referencing must be used.
• You MUST use theory/ literature to support your discussion/ observation and opinions.
• Ensure that readings are not merely reproduced in the assignment without original critical comments and views.
Students should use appropriate and realistic information and examples in discussion (No ChatGPT generated
answers, etc.)