Business Studies Q1c – Supply chain management | HSC HSC Practice – StudyPulse
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Business Studies HSC HSC Practice Question 1c – Supply chain management

Q1c Business Studies Supply chain management Module 1 - Outcome 4

KoruTrail is a New Zealand business that sells premium hiking hydration packs. It has grown quickly through its own website and an online marketplace. Customers can choose standard shipping or express shipping at checkout.

KoruTrail’s current supply chain works as follows:

  • Global sourcing: The outer fabric is sourced from Supplier V in Vietnam. The drinking valve component is sourced from Supplier M in Mexico.
  • Inbound logistics: Both components are shipped to Auckland for final assembly and quality checks.
  • Order fulfilment: Finished packs are stored in a small Auckland warehouse. Orders are picked, packed, and sent directly to customers.

KoruTrail is considering a new operations strategy for the next 12 months:

  • Keep assembly in Auckland, but introduce a 3PL (third-party logistics) provider with warehouses in Auckland and Sydney.
  • Use the 3PL’s Sydney warehouse to hold stock for Australian customers to reduce delivery times.
  • Replace Supplier M (Mexico) with Supplier T (Thailand) for the valve component.

Management has collected the following information.

Item Current approach Proposed approach
Average delivery time to NZ customers 2–4 days 1–3 days
Average delivery time to Australian customers 6–10 days 2–4 days
Monthly warehouse fixed costs (KoruTrail) \$18,000 \$6,000 (smaller storage only)
3PL fulfilment fee N/A \$4.20 per order
Average monthly orders 8,500 9,200 (forecast)
Stockout rate (orders delayed due to no stock available) 6% 3% (forecast)
Supplier lead time for valve component 28 days (Mexico) 18 days (Thailand)
Supplier reliability (on-time deliveries) for valve component 86% 92%

KoruTrail’s brand promise is “fast delivery with reliable performance on the trail.” The operations manager is concerned that using a 3PL and holding stock in two countries could make the supply chain harder to control, especially during peak demand periods.

Question 1c

7 marks

Evaluate the operations risks introduced by moving to two warehouses and changing the valve supplier. Recommend one operational control or strategy to manage each risk you identify.

Your Answer

0 words

About This Business Studies Question

This is a free HSC HSC Business Studies practice question worth 7 marks, testing your understanding of Supply chain management. It falls under operations strategies in Module 1: Operations. Submit your answer above to receive instant AI-powered marking and personalised feedback.

Subject
Business Studies – Higher School Certificate (NSW) HSC
Module 1
Operations
Outcome 4
operations strategies
Content Point
Supply chain management

Content Point Detail

supply chain management – logistics, e-commerce, global sourcing

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