Question 2 Materials Management

Mine operations use a lot of materials from suppliers. Provide one example of product, identify its potential supplier and answer the following questions:

a) Discuss and provide two strategies that mines can apply in order to get the material needed to be delivered on time for operational requirements (5)

b) Explain how the contractual agreements of your organisation impact delivery time. Do you think that they are helping to get on-time deliveries? (5)

c) In which circumstances can your organisation enter into a consignment stock arrangement with your supplier? You may need to define a consignment stock (5)

d) What is the importance of a contractual agreement with suppliers, specifically in the context of inventory and inventory control? (5) [20]