SUPPLY CHAIN MANAGMENT: PSM 622

1. INTERNATIONAL MINING COMPANY OF AFRICA

The International Mining Company (IMC) is engaged in many countries in Africa undergoing
deep mining of precious metals. There is a decentralized engineering function and
procurement function located in each country of operation. One of the countries is in Rwanda.
A need has been identified for the design, preparation of detailed drawings, manufacture,
supply, and delivery to site, installation and commissioning of vacuum pilot plant with a
capacity of a 500 tons per day. This will be a pilot plant in Rwanda, offering the design
potential to increase the capacity to800 tons per day. A decision has been made to single
source this need from a Kenyan company. Negotiations have been underway with the Kenyan
company, for in excess of four months so as to agree on the terms and conditions that shall
govern the business. Procurement department issued the tender, engaged in its evaluation and
with the necessary approach, placed a contract. The agreed completion date is 18 months from
the date of the contract.

Required:
a) From the case study, discuss the various objectives of supply chain management
(10 marks)
b) Explain the benefits of people in supply chain in reference to International Mining
Company of Africa (10 marks)

c) Identify the methods that the organization can use to measure performance (8 marks)

2. a) Explain four principles of customer service in supply chain organizations (8 marks)

b) Enterprise resource planning will enable the organizations to integrate different departments
together. Justify five benefit of Enterprise resource planning (10 marks)

3. a) Explain four objectives of keeping inventory in supply chain management (8 marks)

b) You are a supply chain manager of a retail company and the C.E.O of the company wants
you to make a presentation on the consequences of bullwhip. Show five consequences of
bullwhip effect you would present (10 marks)

4. a) To survive in today‘s highly competitive markets, companies are focusing on their core
competencies to adopt outsourcing. Justify four benefits of using outsourcing (8 marks)

b) With an aid of diagram show the different stages of team development (10 marks)

5. a) Describe four methods an organization can employ to manage inventory (8 marks)

b) You have been recruited in Metric Company to deal with customer service in supply chain.
Justify the benefits of customer service to Metric Company (10 marks)

6. a) Explain four factors influencing the adoption of supply chain systems (8 marks)
1 PSM622/1D2D2A
b) Explain five ways an organization can cope with emerging issues in supply chain
management (10 marks)

2 PSM622/1D2D2A