Read the statement below and answer the questions that follow.

By strategically selecting suppliers aligned with its values and goals, Mr Khumalo clothing store has transformed its supply

chain into a key driver of exceptional customer service. The continuous evaluation and improvement of supplier

relationships ensure that Mr Khumalo clothing store remains agile, innovative, and customer$-$centric in a competitive retail

landscape.

You are newly employed as a supply chain manager for Mr Khumalo clothing store. You are requested to discuss the

following questions and explain how your position would help Mr Khumalo clothing store to become competitive in the

clothing industry.

QUESTION $1(20$ Marks$)$

Discuss any five factors that Mr Khumalo clothing store needs to consider when selecting its suppliers. Make use of

practical examples to support your answer.

QUESTION $2(10$ Marks$)$

As a supply chain manager at Mr Khumalo clothing store, one of your main job descriptions is to assist in offering

exceptional customer service and create value for the client, which enhances the relationship throughout the supply chain.

Use the simple Method and calculate the Customer Lifetime Value $($CVL$)$ for Mr Khumalo clothing store$$s products using the

following data $($Include practical examples and analyse the final results$)$:

Total Revenue $=160,000,000$

Total Number of Customers $=12,000,000$

Total Number of Orders equates to a revenue of R$3,550,000$

Average Order Frequency $($AOF$)=4$

Average Customer Lifespan $($ACL$)=6$ years