QUESTION 2
STATEWETHERTHE FOLLOWING STATEMENTSARETRUE OR FALSE
[2X10]
2.1 Safety stock helps prevent stockouts during supply and demand variability.
2.2 The 'Develop' phase in SCM focuses on building supplier relationships.
2.3 The economic order quantity {EOQ) method aims to balance ordering costs and holding
costs.
2.4 Inventory shrinkage refers to the loss of inventory due to theft, damage, or other causes.
2.5 The primary goal of supply chain management is to minimise costs at all costs.
2.6 Effective supply chain management requires collaboration and coordination among all
stakeholders.
2.7 Lean supply chain management is focused on minimising inventory levels to reduce waste.
2.8 Supply chain management is only concerned with the logistics of moving goods from one
location to another.
2.9 The ABC analysis is a technique used to classify inventory items into different categories
based on their supplier's relationship.
2.10 Place utility in logistics means having goods available when needed.
Sub-total: 20 marks
QUESTION 3
3.1 Case: Global Sourcing and Coordination
A Namibian electronics importer sources components from China, assembles products
locally, and distributes them across SADCcountries.
(20 Marks)
Question:
Discussthe challenges this company might face in managing a global supply chain network.
Propose strategies to balance cost, quality, and customer service while managing logistics
and coordination across geographies.
3.2 Case: Inventory Policy Challenges in Retail
{10 Marks)
A large Namibian retailer experiences frequent stockouts during festive seasons and
overstocking of slow-moving items during off-peak months.
Question:
Using the concepts of inventory classification (cycle stock, safety stock, speculative stock,
etc.), propose a policy for managing seasonal fluctuations. Incorporate tools like ABC
analysis, reorder points, and EOQ in your solution.
4