Question 2 (Marks: 20)

Read the scenario below and answer the questions that follow:

Well-Designed is a kiddies clothing company, based in the Northern Cape, South Africa. They design their products locally and send those designs and quantities per item to a manufacturer in China, who produces and sends the products to South Africa for Well-designed to distribute. The business has been expanding steadily in the last five years, but more significantly in the last two years, since they have started selling some of their products in Botswana and Lesotho, through retailers there. They have recently partnered with a Zimbabwean retailer, who has given a years worth of orders, for a wide range of products.

Q.2.1 Contrast between the weighted moving average or customer surveys as a forecasting tool and make a justified recommendation on the best choice for WellDesigned you are required to provide a paraphrased overview of each method, make a choice and provide at least two application points to support your choice in forecasting method. (10)

Q.2.2 Examine how procurement can significantly affect the profitability of a business and the multiplier effect of purchasing cost savings, in relation to Well-Designed. you are required to provide a paraphrased overview of each concept before relating each to Well-Designed.