Question
VPA operates two production plants: one in Upington and one in Beaufort West. It currently provides the South Africa market with aloe-based health products through
VPA operates two production plants: one in Upington and one in Beaufort West. It currently provides the South Africa market with aloe-based health products through a network of original depots; one in each province. Each of the depots arranges local transport to serve the health shops in retail shopping centres and rural clinics. The products are not time sensitive, are of relatively low value, but are lightweight. The future growth of VAP's cost-sensitive market is undoubtedly Gauteng, but it is also considering developing the southern African market through a future export drive. These exports will probably be sent via the OR Tambo International Airport in Johannesburg. The future demand profile will probably be as follows; Gauteng 40%, Western Cape 20%, KwaZulu- Natal, Eastern Cape 10%, Africa (exports) 20%. The firm is experiencing increasing competition due to the introduction of similar imported products from Brazil, and it urgently has to address escalating costs in its supply chain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started