FACULTY OF BUSINESS & ECONOMIC SCIENCES

DEPARTMENT OF BUSINESS MANAGEMENT

LOGISTICS AND PURCHASING

MANAGEMENT
EBMV202/EBMH202

MODULE GUIDE 2024

 WORD OF WELCOME

Dear student

Welcome to EBMV202/EBMH202! May this be the best module of your entire university
career! Know that the EBMV202/EBMH202 team is there to support you every step of the
way. Please do not hesitate to contact any of us should you have any questions or concerns
regarding the module. You will find our contact details in your study guide as well as on the
first set of slides for this module.

You need to make sure that you work hard, complete the activities required and ask
questions timeously when in doubt. In doing so, you will increase your chances of being
successful.

Mr R Pandie (module coordinator)

Mr S Sirayi
Mr A Peters (George campus)

LECTURE DETAILS
LECTURER DETAILS
The lecturers for the module are:
Mr R Pandie (RP)
Office: Main Building, 11th Floor, Room 16
Direct telephone number: 041 504 4835
E-mail: [email protected]

Mr S Sirayi (SS)
Office: Main Building, 11th Floor, room Direct
telephone number: 041 504 2157 E-mail:
[email protected]

Mr A Peters (AP)
Office: Admin building 0149 (George campus)
Direct telephone number: 044 801-5587
E-mail: [email protected]

Departmental Secretary
Ms V Vinqi
Direct telephone number: 041 5044745
E-mail: [email protected]

CONSULTATIONS DURING THE SEMESTER

Please send me an email to schedule a meeting with your lecturer. Lecturers are not always
in their office due to lectures and other work commitments. Alternatively, if it is urgent, you
may come to their office without scheduling a meeting. If you have any questions about the
work covered in the lecture slides or need clarification on certain topics, please feel free to
email any of the lecturers.
 PRESCRIBED TEXTBOOK
Badenhorst, J.A., Cilliers, J.O., Dlamini, W. & Ambe, I.M. 2023. Purchasing and
supply management. 8th edition. Pretoria, South Africa: Van Schaik.

OR

Badenhorst, J.A., Cilliers, J.O., Dlamini, W. & Ambe, I.M. 2018. Purchasing and
supply management. 7th edition. Pretoria, South Africa: Van Schaik.

ebook: available at Van Schaik and Takealot.com

https://www.vanschaik.com/book/64dcac4a2846f/

MOODLE SITE
This is where the lecturers share information with students which can be accessed at
www.learn.mandela.ac.za. Use the login details received during registration to access your list
of modules. If you are registered, all the modules which you are registered for will be displayed
and accessible. If not, you can access the module using the enrolment key. If you still continue
to experience problems contact he ICT helpdesk at 041 504 3000 | [email protected]

ENROLLMENT KEY: 2024EBMV202 (ALL CAPS)

 SOUTH CAMPUS - SEMESTER PLANNER 2024
DATE CH TOPIC LEC
23 JUL INTRODUCTION LECTURE RP
24 JUL 1 PURCHASING AND SUPPLY MANAGEMENT IN PERSPECTIVE RP
30 JUL 2 THE TASKS OF PURCHASING AND SUPPLY MANAGEMENT RP
31 JUL 3 THE PURCHASING AND SUPPLY PROCESS AND PROCEDURES RP
ONLINE QUIZ 1: CH 1 & 2 – OPENS 9AM MON 5 AUG & CLOSES AT MIDNIGHT SUN 11 AUG
6 AUG 4 PURCHASING AND SUPPLY POLICIES AND STRATEGIES RP
7 AUG ASSIGNMENT LECTURE RP
13 AUG 5 ASSESSMENT AND SELECTION OF SUPPLIERS RP
14 AUG SEMESTER TEST 1: SCOPE LECTURE RP
ONLINE QUIZ 2: CH 3 & 4 – OPENS 9AM MON 19 AUG AND CLOSES AT MIDNIGHT SUN 25 AUG
20 AUG 6 SUSTAINABLE PURCHASING AND SUPPLY MANAGEMENT RP
21 AUG NO LECTURE – TEST PREPARATION (SELF STUDY)
26 AUG SEMESTER TEST 1: CHAPTERS 1 – 4
PRICE AND COST ANALYSIS: A PURCHASING AND SUPPLY RP
27 AUG 8
MANAGEMENT PERSPECTIVE
28 AUG 9 INVENTORY MANAGEMENT SS
ONLINE QUIZ 3: CH 5 & 6 – OPENS 9AM MON 2 SEP AND CLOSES MIDNIGHT SUN 8 SEP
3 SEP 7 THE MANAGEMENT OF QUALITY IN PURCHASING AND SUPPLY SS
4 SEP 12 NEGOTIATION IN PURCHASING AND SUPPLY MANAGEMENT SS
SATURDAY 7 SEPTEMBER 2024 - RECESS – SUNDAY 15 SEPTEMBER 2024
ONLINE QUIZ 4: CH 8 & 9 – OPENS 9AM MON 16 SEP AND CLOSES MIDNIGHT SUN 22 SEP
17 SEP SEMESTER TEST 2: SCOPE LECTURE SS
18 SEP NO LECTURE – TEST PREPARATION (SELF STUDY)
23 SEP SEMESTER TEST 2 – CHAPTERS 7,8,9,12,13 AND 15
24 SEP 15 PROCUREMENT OF CAPITAL EQUIPMENT SS
25 SEP 13 ELECTRONIC COMMERCE AND PROCUREMENT APPLICATIONS SS
ONLINE QUIZ 5: CHAP 7 & 12 – OPENS 9AM MON 30 SEP AND CLOSES MIDNIGHT SUN 6 OCT
1 OCT 16 PURCHASING SERVICES SS
2 OCT 10 MATERIALS FLOW ACTIVITY SS
8 OCT NO LECTURE – FINALISE ASSIGNMENT
9 OCT NO LECTURE - ASSIGNMENT DUE DATE – ONLINE SUBMISSION BY LATEST 23:55PM
ONLINE QUIZ 6: CHAP 13 & 15 – OPENS 9AM MON 14 OCT AND CLOSES MIDNIGHT SUN 20 OCT
15 OCT EXAM & SUPPLEMENTARY TEST BREAKDOWN LECTURE (LAST LECTURE)
22 OCT SUPPLEMENTARY/SICK TEST – ALL CHAPTERS (DURING LECTURE PERIOD
 GEORGE CAMPUS - SEMESTER PLANNER 2024
DATE CH TOPIC LEC
22 JUL INTRODUCTION LECTURE AP
25 JUL 1 PURCHASING AND SUPPLY MANAGEMENT IN PERSPECTIVE AP
29 JUL 2 THE TASKS OF PURCHASING AND SUPPLY MANAGEMENT AP
1 AUG 3 THE PURCHASING AND SUPPLY PROCESS AND PROCEDURES AP
ONLINE QUIZ 1: CH 1 & 2 – OPENS 9AM MON 5 AUG & CLOSES AT MIDNIGHT SUN 11 AUG
5 AUG 4 PURCHASING AND SUPPLY POLICIES AND STRATEGIES AP
8 AUG ASSIGNMENT LECTURE AP
12 AUG 5 ASSESSMENT AND SELECTION OF SUPPLIERS AP
15 AUG SEMESTER TEST 1: SCOPE LECTURE AP
ONLINE QUIZ 2: CH 3 & 4 – OPENS 9AM MON 19 AUG AND CLOSES AT MIDNIGHT SUN 25 AUG
19 AUG 6 SUSTAINABLE PURCHASING AND SUPPLY MANAGEMENT AP
22 AUG NO LECTURE – TEST PREPARATION (SELF STUDY)
26 AUG SEMESTER TEST 1: CHAPTERS 1 – 4
PRICE AND COST ANALYSIS: A PURCHASING AND SUPPLY AP
29 AUG 8
MANAGEMENT PERSPECTIVE
ONLINE QUIZ 3: CH 5 & 6 – OPENS 9AM MON 2 SEP AND CLOSES MIDNIGHT SUN 8 SEP
2 SEP 9 INVENTORY MANAGEMENT AP
5 SEP 7 THE MANAGEMENT OF QUALITY IN PURCHASING AND SUPPLY AP
SATURDAY 7 SEPTEMBER 2024 - RECESS – SUNDAY 15 SEPTEMBER 2024
ONLINE QUIZ 4: CH 8 & 9 – OPENS 9AM MON 16 SEP AND CLOSES MIDNIGHT SUN 22 SEP
16 SEP SEMESTER TEST 2: SCOPE LECTURE AP
19 SEP NO LECTURE – TEST PREPARATION (SELF STUDY)
23 SEP SEMESTER TEST 2 – CHAPTERS 7,8,9,12,13 AND 15
26 SEP 12 NEGOTIATION IN PURCHASING AND SUPPLY MANAGEMENT AP
ONLINE QUIZ 5: CHAP 7 & 12 – OPENS 9AM MON 30 SEP AND CLOSES MIDNIGHT SUN 6 OCT
30 SEP 15 PROCUREMENT OF CAPITAL EQUIPMENT AP
3 OCT 13 ELECTRONIC COMMERCE AND PROCUREMENT APPLICATIONS AP
7 OCT NO LECTURE – FINALISE ASSIGNMENT
10 OCT NO LECTURE - ASSIGNMENT DUE DATE – ONLINE SUBMISSION BY LATEST 23:55PM
ONLINE QUIZ 6: CHAP 13 & 15 – OPENS 9AM MON 14 OCT AND CLOSES MIDNIGHT SUN 20 OCT
14 OCT 16 PURCHASING SERVICES AP
17 OCT 10 MATERIALS FLOW ACTIVITY AP
21 OCT EXAM AND SUPPLEMENTARY TEST BREAKDOWN LECTURE (LAST LECTURE) AP
24 OCT SUPPLEMENTARY/SICK TEST – ALL CHAPTERS (DURING LECTURE PERIOD
LECTURE TIMES: FACE-TO-FACE LECTURES
Please note that the lecture times for EBMV202/EBMH202 are as follows

Gqeberha:
Period Venue Time
Tuesday 5 35_0_0040 10:25 – 11:00
6 35_0_0040 11:00 – 11:35
Wednesday 5 35_0_0040 10:25 – 11:00
6 35_0_0040 11:00 – 11:35
George:
Period Venue Time
Monday 7 301_1_0101 11:45 – 12:20
8 301_1_0101 12:20 – 12:55
Thursday 7 301_1_0101 11:45 – 12:20
8 301_1_0101 12:20 – 12:55
*There are no online lectures for this module, nor duplicates.

Should you have any questions related to the content of the module, please consult us and
DO NOT wait until the test or exam time, because then it will be too late. We have
endeavoured to create a supportive environment where all students feel at ease
communicating with the EBMV202 lecturers, who will answer email queries and/or set up
consultation times. Lecturers will respond to emails within a 24-hour period where this is
possible or within a reasonable timeframe. Due consideration will be given to students with
special needs or those who might require additional assistance.

IMPORTANT DATES
Please note that there will be regular assessment quizzes covering the work that was done
in the previous week/s. These quizzes are important as they contribute to the calculation of
your class mark. The quiz will open on Mondays at 09h00 and will close on Sundays at
midnight unless otherwise stated. It will be 10 MCQ questions.

The dates for the quizzes are as follows:

Quiz Content to be
Moodle quiz opens: Moodle quiz closes:
no. covered:
1 5 August 2024 @9am 11 August 2024 @ midnight Chapter 1 & 2
2 19 August 2024 @9am 25 August 2024 @ midnight Chapter 3 & 4
3 2 September 2024 @9am 8 September 2024 @ midnight Chapter 5 & 6
4 16 September 2024 @9am 22 September 2024 @ midnight Chapter 8 & 9
5 30 September 2024 @9am 6 Octoberr 2024 @ midnight Chapter 7 & 12
6 14 October 2024 @9am 20 October 2024 @ midnight Chapter 13 & 15

➢ Semester Test 1: Monday, 26th August 2024

• Chapters 1 – 4

➢ Semester Test 2: Monday, 23th September 2024

• Chapters 7,8,9,12,13 and 15
 ➢ Assignment Submission: Wednesday, 9th October 2024 (23:55pm cut off)

➢ Supplementary/Sick Test: Tuesday, 22th October 2024 (During lecture period)

• All Chapters

All test will be written face-to-face.

1 November to 21 December 2024: The exams exact date and breakdown of chapters to be
covered will to be communicated to students. There will be no last outstanding assessment
for EBMV202.

CLASS PERFORMANCE & CALCULATION OF FINAL MARKS

It is mandatory for students to acquaint themselves with the Department of Business
Management General Information booklet, General information for undergraduate and post-
graduate students of Business Management. This booklet contains important information
relevant to the course. In addition, it is also mandatory to consult the university’s General
Rules, which can be found in the General Prospectus of the Nelson Mandela University.

Calculation of Final Marks

It is compulsory for students to complete all assessments and adhere to any other stipulated
module requirements. No minimum class mark (DP) is needed for entrance to the examination.
Please note that in order to pass this module, a final mark of 50% is required and a
subminimum performance (examination mark) of 40% must be achieved to pass the module.
Any student with a class mark lower than 50% has a limited chance of passing the module
(obtaining a final mark of more than 50%).

The class mark consists of three components:

Average of 6 Quizzes = 20%

Assignment = 20%
Average of 2 Semester Tests = 60%
Total = 100%

Final mark calculation;

Class mark = 50%

Exam mark = 50%
FINAL MARK = 100%

NB: Test and examination concession for students with disabilities or special needs

If you think you qualify for test and examination concessions (extra time, use of scribes, use
of assistive technologies etc.) submit the necessary documentation verifying your disability to
the Universal Accessibility and Disability Services (UADS). If you do not use your concessions
during the semester for assessments, you forfeit your concessions during the Exams.
Absence from assessments

The following rule (G.1.6.4) is applicable in cases where a student is absent from any
assessment:

▪ If valid documentation is submitted by the due date (three days after the
assessment), that is, medical certificate/ organised sport letterhead / religious
objection:

– Consideration will be given to writing a ‘supplementary assessment’ provided

that satisfactory documentary evidence is provided.

• If no medical certificate / organised sport / religious body’s letterhead is submitted

within three days of missing the assessment:

– Get ‘0’ for the missed assessment.

Emphasis is placed on the importance of satisfactory documentary evidence. Submitting

documentary evidence does not automatically ensure that you will be afforded an additional
opportunity. All cases are investigated and the history of submitting sick certificates in other
modules for the duration of your studies will also be considered. Short-term mild ailments
such as headaches that can be self-medicated will not be accepted unless it can be proven
that it is a chronic condition.

It is important to note that if you are absent from a supplementary / sick test you will forfeit
your opportunity despite submitting satisfactory documentary evidence.

ASSIGNMENT DETAILS
Please note that all EBMV202 students will have to do a group assignment. You will be grouped
and each group will have 5 members. More details of the assignment will be uploaded on
Moodle site as part of the assignment pack.

Due date: Wednesday 9 October 2024. The cut off-time is 23:55. Assignments should be
uploaded onto the module’s Moodle site. No hard copy assignments will be accepted. Late
assignments will be penalised with 10% per day. If no assignment was submitted, you will be
allocated a zero for the assignment mark and this affect your final mark

AI STATEMENT
See below how GenAI tools may be used as well as the uses that are prohibited. The full
Institutional Statement on Generative Artificial Intelligence can be found on the departmental
website and on the various modules’ Moodle sites.

Permission Example
Generative Artificial Intelligence (GenAI) tools are essential resources. It is valuable for you
to engage critically with these tools and explore their use in generating content submitted for
assessment in this course, including [papers, take-home examinations, and specified other
assignments]. You remain responsible for all content you submit for assessments. You may
use GenAI tools to help generate ideas and brainstorm. However, you should note that the
material generated by these tools may be inaccurate, incomplete, and biased. We encourage
you to consider how GenAI complements, replaces, or fails to replace your contributions and
abilities.

Suppose you include content (e.g., ideas, text, code, images) that was generated, in whole or
in part, by Generative Artificial Intelligence tools (including, but not limited to, ChatGPT and
other large language models) in work submitted for evaluation in this course, this work MUST
be declared/acknowledged. Failure to properly cite sources, including AI tools for generating
content, would be considered Academic Misconduct, violating the University’s Plagiarism
Policy (305.04).

Prohibition Example
By submitting work for evaluation in this course, you represent it as your own intellectual
product. Submitting content for evaluation (e.g., ideas, text, code, images) that was generated,
in whole or in part, by Generative Artificial Intelligence tools (including, but not limited to,
ChatGPT and other large language models) would be considered Academic Dishonesty in
violation of the University’s Plagiarism Policy (305.04).

Declaration Statement for Research Submission Example

I, [Student Name], declare that in the course of conducting my research for the thesis
titled [Treatise/Dissertation/Thesis Title], I have utilised AI tools, including ChatGPT, in
the following aspects of my study:

[Specify Aspects or Stages of Study where AI Tools were Employed]

[Provide Examples of Prompts Used for AI Assistance]

I further acknowledge that AI tools have been employed to augment my literature review
process and provide additional guidance in the synthesis of information. However, I
understand that the responsibility for formulating research questions, hypotheses, and
purpose statements lies with the researcher, and AI tools are employed as supportive
aids.

I hereby affirm that all citations and references to AI-generated content derived from
ChatGPT are appropriately attributed in accordance with academic standards.

Signature: _______________________
Date: _______________________

GENERAL INFORMATION
OVERALL COURSE OUTCOME

The general purpose of this course is to give you a thorough grasp and knowledge of the
important role and function of purchasing and supply management towards achieving
enterprise aims.

All the different enterprise functions work together in an efficacious, orderly and synchronised
manner so as to realise the aims of the enterprise to the maximum. Although the various
functions do not operate in isolation but rather complement one another as a whole and are
interdependent, purchasing and supply management is singled out here in order to examine
its role and function more closely.
Throughout, the focus will be on the economic functioning of purchasing and supply
management within the particular business unit and the important role it plays in the
profitability and successful survival of the enterprise. The business unit in this course is the
business enterprise with a profit motive, and specifically the manufacturing business.

By way of motivating you, theory is constantly brought into relation with practice.
Consequently practical application is an important work method in this course and the
fundamental approach as laid down in Business Management theory is constantly
supplemented with more practical and descriptive information about the daily functioning,
nature and aims of purchasing management. Furthermore, the purchasing function is also
regarded a systems element, while taking into account the interaction between the various
components of the enterprise, the function of management and the opportunities and threats
of the environment in which the enterprise operates.

GENERAL COURSE OUTCOMES

What is expected of learners in the purchasing and supply management course can be divided
into three main types of achievements:

Firstly you must always understand certain concepts, guidelines, principles and structures.
Memorise them in such a way that you can benefit from the knowledge as well as the
application thereof. To be able to reproduce the concepts, guidelines and principles from
memory is known as verbal information. As a rule, relatively more achievements in the field
of verbal information are expected of you at the beginning of each course or chapter than
towards the end. The achievements expected of you in this field of study, are usually specified
for you as certain essential content which you must be able to reproduce by explaining,
naming, listing and describing them.

Secondly, in the field of intellectual skill and comprehension certain elaborations,

interpretations, applications and the identification of mutual relationships within the subject
area will be expected of you. You will, for example, be required to relate new data or
observations to acknowledge principles or to find solutions to practical problems by applying
certain guidelines which have been learned weekly. Typical activities to sharpen and test your
skill in this field of study are multiple choice questions, classification exercises, completion of
worksheets during visits to business, work assignments, business games and case studies.
The requirements for more qualitative mastery of the subject-matter increases
proportionately, as you make progress with your study of purchasing and supply management.

Thirdly, it is important to all your lecturers in Business Management to imbue every student
who takes his/her studies seriously with a positive attitude towards the subject. Because this
objective is pursued throughout, it is not repeated in the wording of the specific outcomes
related to each chapter. You will be able to demonstrate your disposition by the standard of
your achievement, perseverance, and genuine interest in and supply. Your participation in
class, the questions you ask, the quality of your performance and your willingness to do more
than the prescribed minimum that is expected of you will inevitably lead to success.

LEARNER ACHIEVEMENT OUTCOMES

With regard to the theme of each chapter, you should be able to:

• reproduce the essential content by naming and/or explaining the relevant

content (where possible with the aid of schematic representations);
 • identify the meaning reflected in the content by indicating the most acceptable or
correct possibility from various given alternatives (e.g. by answering true/false,
and/or multiple-choice questions);
• demonstrate your ability to establish relationship between practice and theory
completing worksheets solving simple problems; and
• generate solutions for any relevant purchasing management problems by completing
work assignments, case studies or critical analyses.

OUTCOMES BASED LEARNING EXPERIENCES (STUDY METHODS)

The following method of study is recommended for each of the units that follow:

• Read the general outcome and introductory summary of contents of the particular
chapter literature recommended in the module as well as other sources according to
your own choice.
• For each chapter a number of learning (or achievement) outcomes are identifies. They
are phrased by using different action verbs. Examples of action verbs describing the
learning outcomes are listed in the table below.
• Complete the assignment/exercises. Exercises supplied in the module or textbook.
Note that these assignments/exercises cover the same levels as the achievement
outcomes. Regard the assignment/exercises as examples of the kind of
assignment/questions that may be set in tests or examinations.
• Discuss your study experience and results with your fellow students as much as
possible. You will, for example, find that you can usually improve your own answers to
questions in a case study if you follow up your own effort with a group discussion about
the various possibilities.

EXAMPLES OF LEARNING OUTCOMES

CAPABILITY MEANING
To state Given (verbal) information must be measures and repeated in its
correct meaning, e.g. “to state the essential content by naming the most
important facts”.
To differentiate The simplest form of intellectual skill is required, e.g. “To distinguish
between activities by saying whether there is a variation if different
activities are described to you.” This demands insight and practice.
To identify A somewhat more advanced intellectual skill than differentiation.
Recognition and identification are required. Knowledge is required both of
the item to be identified and of the other items from which a choice has to
be made, e.g. “To identify meaning by selecting the
correct description from various possibilities.” This requires insight and
practice.
To classify This is a somewhat more advanced intellectual skill than identification. You
must be able to arrange practical examples of observations in defined
categories, e.g. “To classify collected
information by grouping data in suitable categories.” Insight and practice is
required.
To generate The most advanced form of intellectual skill. It is a form of higher- order-
rule-application. Certain principles or procedures are known but new data
is such that problem solution is necessary, e.g. To generate an answer to
the question: “How does one establish an enterprise?” You will complete a
work assignment about the matter,
which requires insight and practice.
 To originate A so-called cognitive strategy. Something new is started or created without
specific guidelines or rules being applied exactly, e.g. “To state possible
strategies in an original way by suggesting a number
of new attitudes (or actions, or courses) in a think-tank.” Requires insight
and practice.
To exhibit A person displays or expresses a certain attitude regarding a subject
(attitude) etc. by reading the suggested literature. Requires
realisation/acceptance of the value of things.

DISCUSSION OF LEARNING OUTCOMES

The learning outcomes are discussed individually. For each learning outcome the prescribed
reading is stated. This is followed by questions/exercises for each learning outcome. This process
is applicable to all the learning outcomes. The learner is required to find the answers to the
questions and exercises in the textbook. Special attention must be given to the end-of-chapter
exercises. Work through the exercises meticulously. You will be required to identify the correct
alternative for multiple choice statements, do other activities and provide solutions to case study.