Sustainable Operations & Procurement | My Assignment Tutor

Page 1 of 6OP240: Sustainable Operations & Procurement28th May 2021sBrighton Business SchoolUndergraduate ProgrammesLevel Five Examination28th May 2021OP240: Sustainable Operations and Procurement__________________Instruction to candidates:Time allowed: Original Duration of Exam: 2 Hours. You will have 48 hours (72 hours ifyou have a Learning Support Plan in Place) to complete the paper.Rubric:You are required to answer FOUR questions out of Seven.All questions carry equal marks. Each question has 25 marks.Submission:You are required to submit your exam answers to the relevant Turnitin SubmissionPoint on Student Central in the Assessment and Grades Area. This should be in theform of a word document. Please do not include your name on the answer documentas papers will be marked anonymously. You must however include your studentnumber on the work submitted.Word Count1,000 words for each hour of the original duration of your exam. The maximum wordcount for this exam is 2,000 words. Please do not exceed the word count as the workwill not be marked.Handwritten calculations and diagrams:Please photograph any handwritten calculations or diagrams that form part of youranswer, and embed them into the Word document. You are not expected to use Excelfor calculations.Nature of examination: UnseenPage 2 of 6OP240: Sustainable Operations & Procurement28th May 2021Question 1“Happy Cows” dairy farm is a supplier of full-fat, organic milk to local farm shops. Beforecustomers can purchase milk at the shops, it first has to be produced, stored and thentransported to the milk processing plant – where it undergoes sterilisation, bottling and datecoding. Bottles of “Happy Cows” milk are stored at the processing plant warehouse, wherethey await transportation to local farm shops. Out-of-date milk from the shops is returned tothe processing plant for disposal.Draw a diagram to describe the supply chain of “Happy Cows” milk – from the point ofproduction to the point of consumption. Indicate clearly all of the main flows between all thestages within this supply chain, including the direction of each flow (450 – 500 words).(25 marks)Page 3 of 6OP240: Sustainable Operations & Procurement28th May 2021Question 2Read the article below. Based on the automotive industry explain briefly the sources ofdifficulty in managing the global supply chain. What are advantages and risks involved withglobal supply chains? (450 – 500 words).(25 marks)Page 4 of 6OP240: Sustainable Operations & Procurement28th May 2021Question 3Read the BBC article below. The importance of reverse logistics in the clothes industry hasincreased in recent years, due to the major shift to online shopping and high rates of returnsassociated with online retailing. Product returns have become a large part of the associatedsupply chain. Define the primary reasons for returns in the apparel industry. Explain thepotential benefits associated with investment in effective reverse logistics. (450 – 500 words).(25 marks)‘I’ll buy five items and only keep one of them’By Eleanor LawrieBusiness reporter, BBC News(22/03/2021)Online shopping has risen strongly during the pandemic, but this has also meant a bigincrease in the number of items being sent back because they don’t fit or aren’t asexpected. A number of tech firms are helping retailers deal with these higher returns’levels.While other people do dry January, Susie Ramroop normally practises “dry spending” at thestart of the year and makes sure she doesn’t make any unnecessary purchases.But during the UK’s third lockdown, the leadership coach says that boredom has promptedher to relax that rule.“I’ll surf the John Lewis website like other people surf the news,” she says.“This week I took five big packages back to Royal Mail, then I came home and there weremore parcels. I took back dresses, a skirt, four tops and a pair of shoes. If I’m not paying forpostage I might as well.”Stuck between two dress sizes, and an avid clothes shopper, Susie knows she “creates areturns problem” every time she orders. And she is far from unusual.Thanks to the lockdown, UK online sales rose by more than a third in 2020, the highestgrowth since 2007, according to online retail body IMRG.One problem with this for retailers is that customers are far more likely to return items whenthey buy them online. This is especially the case for items of clothing, which obviously cannotbe tried on first.A quarter of all fashion goods bought online in 2019 were sent back, according to onereport. For in-store purchases that figure is less than 10%.And online return rates have soared further during the pandemic, according to market researchgroup Mintel. It found that 38% of all UK online shoppers said that the Covid-19 outbreak “hadmade them more confident in returning online purchases”.“The legacy from Covid is higher return rates,” says Nick Carroll, Mintel’s associate director ofretail research.He says that younger shoppers were already happy to “buy, try, return”, but during thepandemic this has also become learned behaviour for older customers. Mintel’s study alsofound that almost half (49%) of UK online shoppers had sent something back in the past year,rising to 60% for those aged 16-34.This trend has caused headaches for online retailers, who often pay to cover the cost ofdelivery and return and have to find a way to get the item back into their supply chain.Shoppers can hold on to goods for weeks, or even months, before sending them back, bywhich time the resale value may have plummeted, meaning goods sometimes end up inlandfill.Teacher Naomi Hodge had to buy maternity clothes online during the pandemic but found thesizes “completely impossible to guess”.Page 5 of 6OP240: Sustainable Operations & Procurement28th May 2021“I’m not normally the kind of person who would buy multiple sizes and then send lots back,”she says. “But I was getting very uncomfortable in the clothes I had and needed somethingthat fitted.“I feel bad about the environmental impact and all the extra journeys delivery drivers havebeen making, I don’t like messing retailers around either.”To solve problems like these, a number of tech firms are trying to make the returns processas slick and environmentally friendly as possible.Rebound Returns, which manages about 40 million returns transactions a year, saw its globalvolumes shoot up by 63% during the pandemic.The UK firm looks after the online returns process for clothing retailers like Asos, Boden andGymshark, and asks customers to fill in their details online every time they request a return.Rebound Returns – who shoppers will not be aware of, as it operates within the retailers’websites – flags up when a return is coming, meaning that the retailer can process the refundquickly and get the stock turned around.The firms can also use this data to compare what their customers buy with what they sendback, meaning they can target shoppers with correctly sized items.“Brands are asking us how to target the right product to the right person, and improve thereturns experience,” says Rebound Returns chief executive Graham Best. “Consumers wantchoice, but they don’t want every choice in the world. They want intelligent choice and thatcreates loyalty.”Rebound Returns also adds up the carbon footprint of its supply chain and passes that on tothe retailer, so they can give customers the chance to make “sustainable choices” at thecheckout, such as a slower delivery time, or the chance to make a charity donation.This idea holds strong appeal for Steph Naylor, a data privacy manager from Woking, Surrey.“A couple of years ago I used to do so much online shopping, to the point where I got two orthree parcels every other day. Now I’ll actively try not to choose next-day delivery. I’m notgoing anywhere, and I don’t mind if it takes longer to reach me. It would be great to see on thecheckout page when you make that choice between next day or longer delivery what thecarbon footprint is of those options, ” she says.“If you could see the environmental impact, people would make more responsible choices. Itwould definitely make a big difference to me.”Question 4Bullwhip effect is a well-known phenomenon in the supply chain. Identify one cause of thebullwhip effect and describe action(s) that can be taken to reduce the impact of that cause onthe bullwhip effect. Clearly and concisely state how the identified action(s) reduce the size ofthe bullwhip effect. (450-500 words).(25 marks)Question 5An increasingly popular service models in business are that companies should earnrevenues from subscribers rather than sell products or service as single ‘items’. What do youthink are the advantages and disadvantages of this type of service? (450-500 words).(25 marks)Page 6 of 6OP240: Sustainable Operations & Procurement28th May 2021Question 6Describe the customer experience and outcomes for a fast-food restaurant, a doctor’s surgeryand an internet-based fashion-clothing retailer. Compare and contrast the services of thesethree organisations. (450-500 words).(25 marks)Question 7(450-500 words).Nespresso has been described as ‘Starbucks without the drive’. It supplies coffee machinesthat brew coffee from capsules, or pods, for home or professional use. The company is anautonomous globally managed business within the Nestlé Group. With corporateheadquarters in Lausanne, Switzerland, Nespresso is present in over 60 countries and countsover 12,000 employees worldwide. The company offers its ubiquitous coffee-filled capsulesand machines for brewing espresso, latte and cappuccino one cup at a time, boasting on itswebsite that ‘the world’s best café is in your home’.Investigate Nespresso and(a) explore how the company uses the concepts of experience-based service and‘servitisation’ to promote its offerings, and(b) how it tries to fulfil its social and environmental responsibilities.(25 marks)


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