Question 1: (37 Marks)
Read the scenario below, and answer the question that follows:

House and Home

Mary Jane, 35 years old, is an absolute fashionista and shopaholic. Mary Jane still receives a generous allowance (R25 000 p.m.) from her parents, works a stable job from (9 am – 4 pm) every week and owns multiple investments, such as retirement annuities and life policies, but still cannot manage to budget sufficiently.

Mary Jane would often go into the red (overdraft) because of her bad habits of paying bills late or even leaving them unpaid sometimes. As a result of her uncontrollable spending behaviour, her financial services providers (ABSA & Capitec Banks) have blacklisted her as a client. This means that Mary Jane will soon be unable to buy any expensive necessities, such as a house or a car.

You are the Training and Development Manager at the furniture reseller, House and Home. Recently, ten (10) new employees were employed, and you must ensure they are trained and prepared to handle all clientele expectations/requirements within the order-processing department.

Indicate the activities involved in processing a customer order. (5 marks)

Read the example below, and answer the questions that follows:

Think about filling up your vehicle with fuel. Now consider the logistics of getting the petrol to your local garage.

It starts with the import of crude oil by sea, which is transported in enormous oil tankers, such as cargo ships or vessels.

The process ends with delivering the converted product (unleaded petrol and diesel) by road tanker to your local garage.

On a local scale, describe each supply chain stakeholder of “The Spar ‘bread’ supply chain” – getting the bread on the shelf at your local Spar supermarket.

Read the statement below, and answer the questions that follow:

Logistics management involves a vast array of functions that are associated with identifying strengths, weaknesses, threats and opportunities.

Indicate whether the statement above is True or False. (1 mark)

Provide an explanation (if the statement is true) or a correction (if the statement is false), to support your choice. (3 marks)

Using your own words, discuss the three (3) main activities associated with logistics management. (7 marks)

Read the scenario below, and answer the question that follows:

Suppose Huawei sold 200, 250, and 300 units of product X (cell phones) in January, February, and March 2023, respectively.

Through the analysis of consumer trends and sales over the past year, Huawei estimates that there will be a need for approximately 250 product X units in April 2023 if the market condition remains the same.

Identify the forecasting technique used to estimate the number of product X (cell phones) needed for April. (1 mark)

From a logistics perspective, explain the importance of demand forecasting.
(6 marks)

Question 2: (24 Marks)
List two (2) objectives of demand management. (2 marks)

Read the scenario below, and answer the question that follows:

The Glasier Inn is a renowned Holiday resort and spa located in the northern islands of Indonesia. The Glasier Inn management team is responsible for the efficient and effective management of all 347 guests by ensuring plans for interruptions to the resort’s operational procedures in the form of unforeseen and uncertain events.

Unfortunately, disaster hit during high demand peak season, when rooms are booked to capacity, a thunderstorm knocked out the Inn’s electricity, leaving the occupants in the dark. The management at Glasier Inn is aware that solutions must be provided to hedge this disruption.

Provide four (4) possible solutions concerning what the management of Glasier Inn should do in this scenario.

Read the scenario below and answer the question that follows:

During peak season, when demand is high and the rooms are booked to capacity, suppose that Glasier Inn does not have enough food inventories. This results in hungry and angry customers.

Provide three (3) possible solutions delineating what the management of Glasier Inn should do in this scenario. (3 marks)

Using your own words, explain the ultimate goal of demand management.
(3 marks)

Read the statement below and answer the question that follows:

To successfully match supply and demand, management’s first challenge is to reduce supply chain complexity.

Several factors contribute to complications experienced in the management of the supply chain. In your own words, explain how each of the underlying factors mentioned below contributes towards complexities in the supply chain. (12 marks)

Shorter product life cycles. (6 marks)
Complex freight mix. (6 marks)

Question 3: (23 Marks)
Read the article extract below, and answer the question that follows:

Packaging plays an integral role in the whole supply chain management cycle. It not only protects products from damage but also allows for their efficient distribution, communicates to the consumers, and is one of the major product differentiators in a competitive consumer marketplace

Use the article extract provided above and the knowledge you have gained throughout the Principles of Logistics Management module. Explain the value of packaging, in no more than 150-200 words, from the following organisational viewpoints:
• The Market function (7 marks)
• The Flow function (3 marks)
• The Environmental function (4 marks)
• Also, indicate the word count (1 mark)
(15 marks)

Read the statement below, and answer the question that follows:

According to Aliakbarain (2019), smart packaging is a term used to refer to technologies that combine the characteristics of intelligent and active packaging. Smart packages detect changes in the product and appropriately respond to these changes.

Compare Auto ID technologies and Active packaging by theoretically explaining each.

Question 4: (10 Marks)
Read the statement below, and answer the question that follows:

Warehouses play a crucial role in successful logistics operations and can be found in most product-based industries.

Explain how warehouses help organisations mitigate fluctuations in supply and demand.

Question 5: (6 Marks)
Explain how the ABC analysis can be used in warehouse management. (6 marks)

Answers to Above Questions on Logistics Management

Answer 1: There are many activities involved in processing a customer order. In the given case scenario on training and development at House and Home, the processing of customer order will include the activities such as order placement, verification of the order, inventory assessment, processing the order, packaging and picking up the order, and finally the shipping and delivery of the order. Apart from this, other major activities include invoicing and payment, tracking customer order, confirmation of delivery, and after Sales Service.

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