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Questions:

4.1 Analyse the article and suggest three (3) factors that recently increased supply chain complexity.

(3)

4.2 Determine the relevant cost and why the understanding of relevant cost is so important in

business. (2)

4.3 From your studies, the total cost of delivery includes the total cost of ownership and a customer

profitability analysis. By using the fruit juice company, Ceres Fruit Juices, as an example, identify

one 2 tier supplier, one 1 tier supplier and 3 trade customer types. (5)

4.4 From your own research, explain why cost management is important in a business. Please

indicate your references. (6)

Fig: 1