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FLM511C- FUNDAMENTAL OF LOGISTICS MANAGEMENT- 2ND OPP-JAN 2025 |
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n Am I BI A u n IVE RS ITY
OF SCIEn CE Ano TECHn OLOGY
FACULTYOF COMMERCE; HUMAN SCIENCES AND EDUCATION
HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS
QUALIFICATION: DIPLOMA IN BUSINESS PROCESSMANAGEMENT
QUALIFICATION CODE: 06DBPM
COURSE CODE: FLMSllC
SESSION: JANUARY 2024
DURATION: 3 HOURS
LEVEL: 6
COURSE NAME:
MANAGEMENT
FUNDAMENTAL
OF LOGISTICS
PAPER: THEORY
MARKS: 100
2ND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S)
Ms. Gloria Tshoopara
MODERATOR:
Ms Hilma Nuuyandja
INSTRUCTIONS
THIS QUESTION PAPER CONSISTS OF 10 PAGES {Including this front page)
11Page
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SECTION A
QUESTION 1
2 MARKS X 11 = 22 MARKS
1. Why would a company that deals with high turnover products choose to implement
cross-docking over traditional warehousing?
A. To maximise storage time and reduce shipping costs
B. To minimise handling time and reduce overall inventory costs by moving goods
quickly through the supply chain
C. To optimise space utilisation by increasing storage capacity
D. To improve security by reducing inventory visibility
2. What is the primary advantage of using a just-in-time (JIT) strategy in conjunction
with a centralised distribution centre?
A. Ability to hold significant amounts of safety stock
B. Lower overall inventory levels and reduced storage costs
C. Increased reliance on long-term storage for stable supply
D. Higher lead times due to the centralised nature of the warehouse
3. Which of the following best explains why a business might choose a public
warehouse over a private warehouse during the early stages of operation?
A. The need for long-term control over inventory handling
B. The requirement for integrating the warehouse with internal manufacturing systems
C. The desire to minimise upfront capital expenditure and leverage flexibility for short-
term contracts
D. The necessity to maintain complete operational oversight for regulatory compliance
4. Which of the following would most likely cause inefficiencies in a highly automated
warehouse?
A. Constantly fluctuating demand for inventory
B. Use of real-time data and predictive analytics
C. Inadequate warehouse layout planning for robot accessibility
D. Low-level integration with warehouse management software (WMS)
5. In which of the following scenarios would cross-docking be most beneficial?
A. When there is a need to store large quantities of goods in a central location.
B. When transportation costs are fixed and do not fluctuate.
C. When inventory holding costs are not a significant concern.
D. When products need to be delivered quickly without long storage times.
6. What is the most significant advantage of using third-party logistics (3PL)
providers?
A. Complete control over all transportation activities.
B. In-house expertise in route optimisation and network design.
C. Full responsibility for transportation risks.
D. Reduced capital investment in transportation assets.
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7. Which of the following best explains why lean supply chains might face increased
risks during supply chain disruptions?
A. Lean supply chains maintain high levels of safety stock, which can lead to waste.
B. Lean supply chains often rely on single-source suppliers and minimal inventory,
which reduces flexibility during disruptions.
C. Lean supply chains focus on rapid production scaling, which increases the
complexity of demand forecasting.
D. Lean supply chains primarily focus on agility, reducing their capacity for stable
production.
8. What is a key benefit of integrating an agile supply chain strategy in industries with
high product innovation and short product life cycles?
A. Lower inventory carrying costs by reducing the frequency of product updates.
B. Increased production efficiency through standardisation.
C. Ability to quickly respond to rapid changes in demand and market trends.
D. Reduction in supply chain complexity by using long-term demand forecasting.
9. Why would a company with a highly diverse product portfolio benefit more from an
agile supply chain strategy than a lean strategy?
A. Lean strategies are better suited to standardised products with stable demand, while
agile strategies are more flexible for varying demand.
B. Agile strategies rely on high inventory levels, which is ideal for a diverse product
range.
C. Lean strategies are not cost-effective for companies producing various products.
D. Agile strategies eliminate the need for collaboration with suppliers, allowing for faster
production.
1O. In a hybrid push-pull strategy, what is the most significant benefit of applying the
pull system at the point closest to the customer?
A. Minimisation of finished goods inventory across the supply chain
B. Ability to customise products based on real-time customer demand
C. Improved economies of scale in production and procurement
D. Increased lead time for customer order fulfilment
11. Which of the following would be the most appropriate supply chain strategy for a
company that manufactures highly seasonal products with fluctuating demand?
A. Lean strategy focused on waste elimination and standardisation
B. Push strategy to build up inventory in anticipation of high demand
C. Agile strategy to quickly adapt production based on real-time demand signals
D. Hybrid strategy that combines elements of both push and pull based on the stage of
the supply chain
SUBTOTAL: 22 MARKS
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QUESTION2
2 MARKS X = 18 MARKS
FILL IN THE MISSING WORD
a) One major challenge of a lean supply chain is it's limited ____
spikes in demand.
in responding to sudden
b) In a ____
supply chain strategy, the company maintains minimal inventory and focuses
on continuous improvement to reduce waste.
Answer: Lean
c) The ____
effect refers to the amplification of demand fluctuations as they move up the
supply chain, often seen in push-based systems.
d) A ____
supply chain relies on strong supplier collaboration to quickly adapt to changes
and ensure responsiveness.
Answer: agile
e) ____
logistics focuses on minimising environmental impact by reducing emissions,
waste,
and
energy
use
in
supply
chain
activities.
f) The process of grouping products together to facilitate handling and shipping is known as
g) ____
multiple
logistics refers to the coordination and integration of the supply chain across
countries
or
regions.
h) The process of delivering goods from a supplier or warehouse to the final customer is called
i) A common technique in inventory management where older stock is sold before newer stock is
called
SUBTOTAL: 18 MARKS
SECTION B
QUESTION3
Critically assess the role of logistics management in achieving competitive advantage.
How do effective logistics strategies contribute to cost reduction, customer satisfaction, and
overall business success?
[20 marks]
QUESTION4
Discuss the trade-offs between holding costs and stock-out costs in inventory management.
Analyse how these trade-offs influence inventory management strategies, particularly in high-
demand industries, and suggest methods for balancing them.
[20 marks]
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('
QUESTIONS
Discuss the importance of transport infrastructure in developing economies.
How do transportation systems and infrastructure investment impact economic growth and
supply chain development in emerging markets?
[20 marks]
TOTAL: 100 MARKS
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