Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these General Management questions