“adcorp ee NET Regtraton NR 2000/HEO7/002 ws QF-57 v20.1 SUMMATIVE ASSESSMENT NATIONAL ASSESSMENT — LOGISTICS MANAGEMENT | _ Closed Book B3hours_ Assessor: Jannie Koegelenberg Moderator: Eric Solomon _ No of pages: 21 Pages - | Total marks: 200 marks = 100% (nee son 1. | Unless otherwise stipulated, no books, notes or other papers may be in possession of any learner during the assessment. Z| No communication between learners alowed 5. Non- programmable calculators ae permitted tobe used I required E 4. [ celphones must be switched of : [5 [film your name, 1D number and sign onthe attendance register as boing present Tor the seit [é-—[ Keep yourID document visible on your desk at all times for inspection bythe invigator [ZT question papers and answer books must be handed in before you leave the assessment venue Based iL Allquestions are compulsory [atts isa closed book examination : ] Logistics Management| Page 1 of 18, National Examination No § MemorandumSection A - Compulsory Question1 True / False (10 marks) ‘The following 10 statements are either true or false. Respond to this question by writing the question number and your choice of answer next to it. Example 1 T or 1 F. Do not re-write the statement 1. _ Fillrate refers to customer service levels. Information flow is not part of logistical operations. Distribution requirements planning (DRP) is related to manufacturing. ‘Speed of transportation is the time required to complete a movement. ‘Spot- stocking is not a warehouse service benefit. Life cycle support a logistical integration objective, Sensi ity analysis is not part of Phase Il of the research process. 8. Storage cost isa facility expense related to product holding. 9. Seasonal storage is not an economical benefit of warehousing. 10. Shipment manifest Is not part of transport documentation. 1 | True v4 2 [False | Va 3_| False “4 4 | True va S_| False “1 6 | True v4 7 | Fase | va | 8 [true | a 9 | False va 10 | False v4 Question 2 (10 marks) In your answer book write down the number with the letter that corresponds to the correct answer for each ‘question number 1 to 10. Each question is worth 1m: 1. Warehouse operations consists out of the following: a. Cross- docking b. Mixing Assembly d. All of the abovev1 Logistics Management | Page 2 of 18 National Examination No S Memorandum2. Which one of the following is not part of primary warehouse operations? a. Product handling b. Security” Product handling considerations d. Storage 3. The most expensive mode of transport a Aiea b. Water Truck d. Rail 4. Logistics consists of the following? ‘Transportation Inventory Facility network design All of the abovey'1 5. Which of the following is not a transport participant? Trucks Shipper Information technology Public Which of the following is not part of logistical integration objectives? Quality Responsiveness ‘Manufacturing’ Shipment consolidation 7. Reverse logistics consists out of the following? a. Returns management b. Recycling & Disposal a. ‘the abovev1 Which of the following is not a warehouse decision? a. Site selection b. Responsivenessv'1 © Design d. Expansion Logistics Management| Page 3 0f 18 National Examination No § Memorandum‘Which of the following is not an automated system? a Lifttrucks“2 b. Potential to automate Order selection d. Automated retrieval 10. Which one of the following is not part of Phase Il of the research process? a. Defining analysis approaches and techniques b. Defining and reviewing assumptions Feasibility assessment’ d. Data collection 2a [- 22 [= 23 [- 24 | 25 | - 26 | - 27 |= 28 | - 29 | - 240 | - opal elolot>'ef>l=lol Question 3 Match the columns (5 marks) Match the items in column A with the items in Column B. Do not repeat the statements. Answer in the following manner: E.G.: 1¢ C Column A Column 8 1_| Road transport b | High variable cost¥1 2 | Inventory € | Expensivev i Operational performance [a | Speed Network deployment a_| Transport participant’ 1 5 | Consignee @ | Warehouse ownershipv'1 SectionB (150 Marks) (Answer ANY 3 of the 4 questions) Question 1 [50] 1.1 Explain the working of logistical operations. (12) Learners have to base their discussion on any of the following theoretical aspects: Inventory flowy ‘© Operational management of logistics is concerned with movement and storage of inventory in the form of materials, work-in- progress and finished products. '* Logistical operations start with the initial shipment of materials from a supplier, finalised by a manufacturer and delivered to a customer.” 1 Logistics Management | Page 4 of 18, National Examination No S Memorandum12 * Logistics adds value by moving inventory when and where needed.” ‘Materials and components gain value at each step of their transformation.’ + Likewise the finished product has greater value once it is delivered to the customer. + Represents the elements of work necessary to complete the logistics related to customer accommodation, manufacturing or procurement.” ide logistical operations into three areas: Customer accommodation’ + Movement of finished products to customers is the end objective of logistics.”'1 + Dealing with aspects of serving customers, is called customer accommodation.” « _Itis through this process that it becomes an integral part of marketing. 1 + All customer relationship systems have one common feature.v 1 + Thealignment of manufacturers, wholesalers and retailers to provide customers with products. ‘Manufacturing + The area of manufacturing concentrates on managing work: flows between stages of manufacturing.”1 is to formulate a master production schedule and to + progress inventory as it arrange for its implementation. ‘© By timely availability of materials, components, parts and work-in- process inventory.v'1 © Thus the overall concern of manufacturing support is not “how” production occurs, but rather “what”, “when” and “where” products will be manufactured. 1 ProcurementY'1 ‘= Isconcerned with the purchasing and arranging of inbound movements of mater ‘and/or finished inventory from suppliers.v 1 ‘+ Into manufacturing or assembly plants, warehouses or retail stores.“ Is, parts * Government -> Procurement 12 > Buying” 1 + In many circles > Supply Chain Management’ ‘Material > Inventory moving inbound to an enterprise 1 ‘Product -> Value ~added inventory sold to customers 's specific locations within a logistical system that have requirements.“ 1 © Information also integrates the logistical operating areas.” ‘= Individual logistics areas, different movement requirements of the order, availability of inventory and urgency.’ + The primary objective of information flow is to reconcile these differentials and to improve overall supply chain performance.v'1 ‘© Without accurate information, the effort can be misdirected. 1 with respect to the size Page 45 -47 prescribed textbook Explain transport functionality with regards to the following: (13) + Product movement + Product storage Learners have to base their discussion on any of the following theoretical aspects: Product movement’. Logistics Management | Page S of 18 National Examination No 5 Memorandum13 ‘© Whether it isin the form of materials, components, work ‘© Basic value is to move inventory to specified destinations throughout the supply chain.” ‘© The performance of transportation is vital to procurement, manufacturing and customer ‘© Also plays a key role in the performance of reverse logi in- process or finished goods.¥1 relationship management. 1 ics. ‘Transportation consumes time, financial and environmental resources. 2 Has a restrictive element, because during the transportation process itis inaccessible.” Refer to as in-transit inventory.” ‘When designing logistical systems, managers strive to reduce minimum.v/1 '* Advancements in information technology have improves access by provi and exact location.1. ‘= Transportation also uses financial resources” 1 © Transportation cost result from driver labour, fuel, vehicle maintenance, capital invested in equipment and administration. 1. + Inaddition product loss and damage can represent significant costs.//1 * Impacts environmental resources directly and indirectly. © Directly transportation represents one of the largest consumers of fuel and oil. ‘Indirectly transportation impacts the environment through congestion, air pollution and noise pollution. 1 transit inventory toa i arrival status Product Storage” + Less visible aspect.v't ‘© When product is in a transportation vehicle it is being stored.” 1 Transport vehicle can also be used for temporary product storage at shipment origin or destination. 1 © Ifinventory is scheduled to be shipped in a few days, the cost of unloading, warehousing and reloading may exceed the temporary cost.v 1 rsion1 + Occurs when the original shipping destination is changed after a product has been shipped (in transit. * May be justified from a total cost or perspective performance. 1. + When loading, unloading costs, capacity constraints and ability to extent lead times are taken into consideration.“'1 Page 185 -186 prescribed textbook Explain the importance of strategic warehousing with regards to the following: (a5) Service benefits Learners have to base thelr discussion on any of the following theoretical aspects: Warehouses can improve service in three ways: Spot-stocking V1 ‘© Istypically used to support customer requirements. 1 ‘= Manufacturers of highly seasonal products often spot- stock.'1 ‘© Instead of maintaining inventory in a warehouse year- around or sk ping to customers direct from manufacturing plants, responsiveness in peak selling periods can be enhanced through temporary inventory positioning in strategic markets. 1 '* Under this concept, select inventory is positioned or spot- stocked in a local market ‘warehouse in anticipation of responding to customer need during the critical sales period.v'1 Logistics Management | Page 6 of 18 National Examination No 5 Memorandum14 Utilising warehouse facilities for spot - stocking allows inventories to be placed in a variety of markets adjacent to key customers just prior to a period of high seasonal sales.7'1 © For example, agricultural fertilizer companies sometimes spot ~ stock near farmers in anticipation of the growing season.’ ‘© After the growing season, such spot- stocking would likely be reduced or eli inated.“ Full line stocking V1 * The difference between spot-stocking and full- the warehouse utilisation.» e stocking is the degree and duration of * Afirm following a spot- stocking strategy would temporarily warehouse a narrow product assortment in large number of warehouses for a limited time period.v'1 * The full-line stocking warehouse is more often restricted to a few strategic locations and operates year-round.v'1 ‘* Full-line stocking warehouses improve service by reducing the number of suppliers that a customer must logistically deal with.v'1 © The combined assortments also make economical larger shipments possible.”'1 Value-added services “1 The demand for highly customised service has transformed modern distribution warehouses into facilities that specialises in performing value-added services (VAS). © It is any work that creates a greater value for customers. © It typically changes the physical features or configuration of products so they are presented to customers in a unique or customised manner.«'1 © Warehouse can postpone final product configuration buy completing packaging, labelling and even light manufacturing.“ 1 ‘= For example vegetables, can be processed and canned in brights at the processing plants. Brights are cans without labels.v 1. © Holding inventory as brights means that a product is not committed to specific customers fr carton configuration during initial manufacturing or processing. 1 © Once a specific customer order is received, the warehouse can complete labelling and finalise packaging.“ * Postponement provides two economic benefits. 1 ‘© First, risk is minimised because customised packaging is not performed in anticipation of. customer orders or to accommodate a forecast. ‘= Second, total inventory can be reduced by using inventory of the base product to aggregate demand across multiple customers’ requirements. ‘©The combination of reduced risk and lower inventory can result in reduced total cost to service even if packaging performed at the warehouse is more expensive per unit than ifit were completed during manufacturing. Page 221 - 222 prescribed textbook Discus the concept of cross- dock operations. (10) Learners have to base their discussion on any of the following theoretical aspect ‘© The objective is to combine inventory from multiple origins into a customised assortment to meet the needs of a specific customer. ‘© Retailers make extensive use of it to replenish fast- moving store inventories. © Requires precise on- time delivery from each manufacturer. ‘© As the product is received and unloaded at the cross-dock, it is sorted by customer Logistics Management | Page 7 of 18, National Examination No S Memorandumdestination. + In most cases the customer has communicated precise volume requirements of each product, requested for each delivery destination.” * The manufacturers in turn, may have sorted, loaded and labelled the appropriate quantity by final destination when trailers were loaded at the origin.” + Products is then literally moved across the dock from receiving into a truck dedicated to the delivery destination.” © Once outbound trucks are loaded with mixed products from multiple manufacturers, they are released for transport to destination." ‘© Makes it highly dependent on information technology. 1 Page 224 prescribed textbook ‘Question 2 {0} 2.1 lustrate the conceptual design of an integrated materials requirements planning (MRP) and (13) distribution requirements planning (DRP). Raw materialsY 1 Part E Page 174 prescribed textbook Logistics Management | Page 8 of 18 National Examination No S Memorandum2.2 Under what circumstances would you use the following types of material handling equipment? Provide examples from your workplace or any other business to help explain your answer. © Order selection © Towlines © Conveyors © Potential to automate © Lift trucks When marking this question, assessors should apply theory and application marks in the following manner (v3 for definition and v2 for example). If students list equipment not shown in the memo then relevance of the application must be considered and marks awarded accordingly Order selection The general process begins with an automated order selection device preloaded with a product. The device consists of a series of flow racks stacked vertically. Merchandise is loaded from the rear and permitted to flow forward in the flow rack on gravity conveyors until stopped by a rack door. v3 Characteristics are: = Power conveyors create a merchandise flow line.¥ 1 + Several flow lines positioned vertical to each other. One to service each level or height of rack doors.” © Sequenced instructions to trip the rack doors." ‘Allows merchandise to flow forward onto powered conveyors.¥1 Conveyors transport merchandise to an order picking area. ‘© Products to be placed in shipment containers. v1 Towlines = Consists of either in-floor or overhead - mounted cable or drag devices. V1 Characteristics are: ‘© Utllised to provide continuous power to four- wheel trailers. v1 © Main advantage is continuous movement.“'1 © Less flexibility than lift trucks.v/1 ‘© Used for master carton order selection.’ Conveyors Either gravity or powered, these devices are used for moving items from point to point over fixed paths. Whilst the primary function is movement, this can be combined with other operations, for example the assembly line in a motor vehicle assembly plant. Common examples are roller conveyors, belt conveyors, chutes, monorails and screw conveyors ¥ “3. Character © Loads are uniform.’ ‘+ Materials move continually. © Routes do not vary.v1 ‘© Loads are reasonably constant.v/1. ‘* Movement rate is relatively fixed. ‘© Conveyors can bypass cross traffic. Logistics Management| Page 9 of 18, National Examination No S Memorandum (5) (5) 6) 6) (6)23 Potential to automate ‘The appeal of automation is that it substitutes capital equipment for labour. thas the potential to operate faster and more accurately with less product damage than its mechanised counterpart. ¥¥V'3 Characte are: * Designed and constructed for specific handling applications. 1 + Information technology is essential. 1 ‘Interfaces with Warehouse Management System (WMS). 1 ‘Dependency on proprietary information technology networks. Lift trucks Off road or powered devices used for mixed and uniform loads over varying paths which have suitable running surfaces and clearances and where the primary function is manoeuvring, transporting, lifting and lowering. Include such vehicles as pallet jacks, forklifts, platform trucks and tractor trailer trains. VW¥3 Characteristics are: ‘© Materials are moved intermittently. ‘© Varying routes are followed.v'1 ‘© Loads are uniform or mixed in size and weight.“ ‘+ Floors and running surfaces are suitable. ‘© Material can be put into unit loads. Page 235 - 240 prescribed textbook Explain the following with regards to secondary warehouse operations: (2) © Accuracy and audits Explain the following with regards to secondary warehouse operations: ‘Accuracy and audits Learners have to base thelr discussion on any of the following theoretical aspects: ‘© One secondary, but critically important, warehouse function is maintaining an accurate account of products on hand within the warehouse.v'1 * Inventory accuracy is typically maintained by an annual physical inventory count in which ‘the warehouse operation is closed while all on-hand products are physical counted and verified against system quantities.”/1 Physical inventories are less desirable for two main reasons:/1 © The warehouse must be closed to facilitate counting In an environment with no active transactions, resulting in the warehouse being unable to conduct primary functions such as receiving and shipping.“ ‘© The audits are costly because they require significant physical labour to count all on-hand inventory. = One tool firms use to support ongoing accuracy and help avoid complete physical inventories is referred to as cycle counting.’ Cycle counting is the selective audit of a certain number of SKU’s or bin locations on a predetermined schedule.’ © Selection of individual items to be counted and be verified van be based on the rand value of the item, storage locations or frequency of movement.” Page 243 prescribed textbook Logistics Management | Page 10 of 18 National Exemination No 5 MemorandumQuestion 3 [50] 3.1 Explain the difference between a private and public warehouse and when it would be (10) appropriate to use both in a logistics context? Learners have to base their discussion an any of the following theoretical aspects: A private warehouse fa ‘owned and managed by the same enterprise that owns the merchandise stored at the facility” “2. A public warehouse is facility that provides services to the clients as an independent business V2. Private warehouses operate wholly under the guise of the firm’V2, Though not always as efficient or proficient as public warehouse ‘operators, they have no markup. Utilising private warehouses offers financial flexibility, since ‘they require no fixed investment. With public warchouses, it is easier to change location, size and the number of warehouses. v3 A combination of both is used to satisfy the product, demand change patterns during the year and among geographic locations. Taking the financial resources of the company into consideration. ¥7'v v4 Page 226 - 228 prescribed textbook 3.2. Explain the following inventory carrying costs: (a) © Taxes © Obsolescence Learners have to base their discussion on any of the following theoretical aspect Taxes ‘© Tax expense is usually a direct levy based on inventory value on a specific day of the year. 1 ‘© Oraverage inventory value over a period of time.’ ‘© Inmany cases tax exemption is available.v'1 Obsolescence ‘© Results from deterioration of products during storage.” 1 ‘© Ages beyond recommended sell - by date, such as food and pharmaceuticals. ‘© Financial loss when a product has no longer fashion appeal or a demand. ¥ v2 ‘© Typically estimated on the bases on past experience concerning markdowns, donations or quantity destroyed. v2 ‘© Tax expense is usually a direct levy based on inventory value on a specific day of the year.v1 Page 151 -152 prescribed textbook 3.3 There are several basic principles of handling. Identity size of these principles. (22) ‘© Equipment for handling and storage should be as standardised as possible. v2 ‘* When in mation, the system should be designed to provide maximum continuous product flow. ¥¥2 ‘© Investment should be in handling rather stationery equipment. v V2 ‘+ Handling equipment should be utilised to the maximum extent possible. v2 ‘© Inhandling equipment selection the ratio of dead weight to payload should be minimised. v2 + Whenever prai 3, gravity flow should be incorporated in system design. V2 Page 235 prescribed textbook Logistics Management | Page 11 of 18 National Examination No § Memorandum34 35 Explain the systems concept and analysis. (a3) Learners have to base their discussion on any of the following theoretical aspects: systems concept Is an analytical framework that seeks total integration of components, essential to achieving stated objectives.¥1 * The components of a logistics system are typically called functions. 1 ‘© The logistical functions are order processing, inventory, transportation, warehousing, ‘materials handling, packaging and facility network design. Systems analysi © Applied to logistics, seeks to quantify trade-offs between these functions. 1. © The goal is to create a whole or integrated effort, which is greater than the sum of the individual parts or functions. ‘© Such integration creates a synergistic interrelationship between functions in pursuit of higher overall achievement. ‘© Attention is focussed on the interaction between components.v1 ‘= Each component contributes a specific functionality, essential to achieving system objectives. To illustrate, consider a music system. The speakers, tuner, amplifier and other components have purpose only if they contribute to quality sound.” ‘= Firstly, the performance of the total system or process is of singular importance. 1 ‘© Secondly, individual components need not to have the best or optimum design. Emphasis is on the integrated relationship between components that constitute the system. ‘© Thirdly, a functional relationship, called trade- off, exists between components that serve to stimulate or hinder total system performance. Suppose a trade-off allows a lower- quality amplifier to be used if improved electronics are added to the system. The cost of the upgraded electronics must be Justified in terms of savings in the amplifier cost.2 Finally, components linked together as an integrated system, may produce end results greater than possible through individual performance. In fact, the desired result may be unattainable without the integrated performance. A stereo system will technically operate without speakers, but audible sound would not be possible. v2 Page 282 283 prescribed textbook Explain the following transportation documentati © Shipment manifest (a) Learners have to base their discussion on any of the following theoretical aspects: ‘© It lists individual stops or consignees when multiple shipments are placed on a single vehicle. © Each shipment requires a bill of lading.” ‘© The manifest list the stop, bill of lading, weight and case count for each shipment. 1 ‘© The objective of the manifest is to provide a single document that defines the overall content of the load without requiring review of individual's bills of lading. 1 ‘© For single-stop shipments, the manifest is the same as the bill of lading. 1 Page 215 prescribed textbook Logistics Management| Page 12 of 18 National Examination No § MemorandumQuestion 4 1 Explain the importance of the enterprise facility network with regards to the following: ‘= Spectrum of location decisions © Local presence: An obsolete paradigm Learners have to base their discussion on any of the following theoretical aspects: Enterprise facility network © Prior to the availability of low-cost dependable land transportation, most of the world’s commerce relied on product and material movement via water.“1. ‘© During this early period, commercially activity concentrated around port cities.1 © Overland transport of goods was costly and slow.v/1 © Weber developed a scheme to classify materials as, ubiquitous materials and localised materials. ‘© Ubiquitous materials were those available at all locations. 1 © Localised materials consisted of mineral deposits only found at selected areas. ‘© Onthe basis of this Weber developed a material index. © The index was the ratio of the localised raw material to the total weight of the finished product. 1 ‘© Various types of industries were assigned a locational weight based on the material index. Spectrum of location decisions“ © In terms of logistical system design, transportation offers the potential to link geographically dispersed manufacturing, warehousing and market locations into an integrated system./1 ‘© Logistical systems facilities include all locations at which materials, work- in- process, or finished inventories are handled or stored. ‘© Thus, all retail stores, finished goods warehouses, manufacturing plants and material ns. V1 storage warehouses, represent lof ‘+ Selection of individual locations, as well as the com Important competitive and cost- related logi Local presence: An obsolete paradigm ‘© A long - standing belief in business is that a firm must have facilities in local markets to successfully conduct business.’ ‘© Customers felt that unless a supplier mai ‘would be difficult, if not impossible to provide consistent delivery. ‘* This perception, commonly referred to as the local presence paradigm, resulted inventories being maintained in numerous local markets.” '* However, for the past several decades the cost and risk associated with maintaining local presence have forced re-examination.” © Transport point where shipment arrival times are dependable and predictable.’ © Rapid advances in information technology have reduced the time required to identify and ‘communicate customer requirements. 1 + Technology delivery information. Page 277 -278 prescribed textbook Logistics Management| Page 13 of 18, National Examination No § Memorandum site locational network, represents 1ed inventory within the local market area, it n services have dramatically expanded, and reliability has increased to the available to track transportation vehicles, thereby providing accurate {50} (as)4.2 Explain the concept of packaging for handling efficiency with regards to the following: (20) © Package design © Unitisation © Communication Learners have to base their discussion on any of the followit Package Design © Product packay efficiency. © Cube utilisation can be improved (concentrating products such as orange juice or fabric softener, el 1 air inside). ‘© Dunnage materials (polystyrene foam peanuts) can be minimised by simply reducing box sves.v1 ‘© Cube minimisation is most important for lightweight products (assembled lawn furniture). ‘© Cube out a transport vehicle before weight limits are reached. * On the other hand, heavy products like steel ball bearings or liquid in glass bottles, typically weigh out transport vehicles before cube capacity is filled ‘© Plastic jars for baby food. ‘+ Cube and weight minimisation represent a special challenge for mail order and e- ‘commerce operations. “1 '* Tend to utilise standardised packaging for both purchasing and operating efficiencies. ‘© Result is oversized packaging that requires excessive dunnage and increased shipping cost. theoretical aspect jing in standard configurations and order quantities facilitates logistical Unitisation © Process of grouping master cartons into one physical unit for materials handling or transport is referred to as unitisation or containerisation.v'1 ‘* Can be from taping two master cartons together, to the use of specialised transportation ‘equipment. * Basic objective of increasing handling and transport efficiency. © Unit loads provide many benefits over handling individual master cartons.v/1 © Firstly, unloading time and congestion at destinations are minimised.“ © Secondly, products s unit load quantities facilitate handling.“ Rigid devices’ © Provides an enclosure within the master cartons or loose products is unitised. 1 ® Placing products inside a sealed container will both protect them and facilitate handling. © The use of containers handled and transported by special equipment and ships is a common practice in air and water transport. 1 © Airlines use rigid containerisation for both freight and for passenger baggage. 1 » Returnable containers have traditionally been used to distribute selected products. 1 = Most reusable containers are steel or plastic.“ © Automobile manufacturers use returnable racks for interplant shipment of body parts. Chemical companies reuse steel drums.v 1 Flexible devices” 1 © Donot protect a product by complete enclosure.v/3 + Most common type is stacked master cartons on either pallets or slipsheets.~'1 Pallets are most commonly constructed out of wood. 1 Slipsheets (made from cardboard or plastic) When in motion, the system should be designed to provide maximum continuous product flow.” Logistics Management I Page 4of18 National Examination No $ Memorandum43 ‘© Most industries recommend that a standardised pallet or slipsheet size be used as a unit load platform.v'1 © Thelarger the platform the more efficient the associated handling. © Other determination of size should be based upon load.v'1 ‘* Meaning compatibility with the handling and transport equipment used throughout the logistical system. ‘© The use of flexible unitization can increase damage potential if itis not properly contained during handling or transport. 1 © Standard methods of improving stability include rope tie, corner posts, steel strapping, taping antiskid adhesives and wrapping.’ ‘© Tie the master cartons into the pallet stacking pattern. Pallet exchange pools have been organised as a way to overcome traditional problems of return and exchange.”1 ‘© High- quality pallets are expensive and are difficult to retrieve once they leave the owner's, control.’ * Pallet pools are third- party suppliers that maintain and lease high quality pallets. 1 Communication © Also referred to information transfer.“ ‘© Isbecoming increasingly critical. © Toprovide content identification, and information essential for security.” 1 ‘© Role is to identify package contents for all channel members.¥ Typical information includes: © Manufacturer © Product = County1 © Universal Product Code(UPC}”'1 © Electronic Product Code(EPC)Y 1 © May be communicated using a bar code or RFID 1 ‘© The carton information is used to identify products for receiving, order sel shipment verification.7'1 bility is the major content identification consideration as materials handlers should be able to observe or electronically read the labels at reasonable distances from all directionsv'1 ‘© Exception is high value products that often have small or minimal labels, to minimise the potential for pilferagev’2 Page 251 -254 prescribed textbook Explain the following specialised transportation services: (a2) © Parcel services ‘© Intermodal Learners have to base their discussion on any of the following theoretical aspects: Parcel services ‘© Influence of carriers in this segmen capabilities. 1 ‘© E-commerce and the need for consumer - direct have si package delivery services. 1 ‘+ Package service provides both regular and premium services. Intermodal ‘* Combines two or more modes to take advantage of the inherent econo! \creasing because of size and intermodal ificantly increased demand for sof each and Logistics Management | Page 15 of 18 National Examination No $ Memorandumthus integrated services at a lower cost. ‘© Many efforts have been made over the years to integrate different transportation modes. ‘© Initial attempts at modal coordination trace back to the early 1920's. ‘© Intermodal offerings began to develop more successfully during the 1950's with the advent of integrated rail and motor service commonly termed piggyback service.v'1 © Combines the flexibility of truck for short distances and rail for longer distances.1 Page 197 - 199 prescribed textbook SectionC (25 Marks) (Answer ANY 1 of the following 2 questions) Question 1 (25) Read the following case study Thabani is starting his own logistics company. He is considering various warehouse locations in the Gauteng area. He will be utilising his company to store and distribute cleaning materials. The ‘customers are situated in Polokwane and Cape Town. He also realises that he has no experience in this field and that an incorrect decision can be costly. ‘Advise Thabani on the following warehouse decisions: © Site selection © Design © Product-mix analysis = Expansion © Handling © Layout © Sizing Remember to refer to evidence in the case study. Do not discuss only theory. Learners have to base their discussion on any of the following theory aspects: ite selection The first task is to Identify the general area and the specific warehouse location.¥ 1 ‘The general area concerns the broad geography where an active warehouse makes sense from a service, economic and strategic perspective. ‘Typical areas in a community for locating warehouses are commercial development and outlying suburban areas. 1 The factors driving site selection are service availability and cost.” In many cities warehousing are among industrial plants and in areas zoned for light or heavy machinery.“ 1 ‘Most warehouses can operate legally under the restrictions placed upon general commercial property.¥'1 ‘© Operating expenses such as transport access, utility hook-ups, taxes and insurance rates require evaluation.”1 The cost of essential services may vary extensively between sites. 1 The site must offer adequate room for expansion.» The soil must be able to support the structure.¥ 1 ‘The site must be sufficiently high to afford proper water drai ge 1 Logistics Management| Page 16 of 18 National Examination No S MemorandumDesign lt must consider product movement characteristics.“ ‘Three factors to be determined during the design process are the number of floors to include in the facility, a cube utilisation plan and product flow. The ideal warehouse design is a one- floor building that eliminates the need to move products vertically.71 The use of vertical handling devices, such as elevators and conveyors to move products from one floor to the next requires time and energy and typically creates handling bottlenecks. Warehouse design must maximise cubic utilisation. 1 Maximum effective warehouse height is limited by the safe lifting capabilities of handling equipment, such as lift trucks, rack design and fire safety regulations imposed by sprinkler systems. It should facilitate straight forward flow through the building. Product mix analys ‘The design and operation of a warehouse are both dependent on the product mix.” Each product should be analysed in terms of annual demand, weight, cube and packaging. ‘These data provide necessary information for determining warehouse space, design and layout, handling equipment, operating procedures and controls. 1 Expansion Future expansion should be considered during the initial planning phase. 1 Building design should also accommodate future expansion.“ Some walls may be constructed of semi permanent materials to allow ai v1 Floor areas, designed to support heavy movements, can be extended during initial construction to facilitate expansion. 1 Handling A handling system is the basic driver of warehouse design. The handling system must be selected early in the warehouse development process. v1 Layout The layout and the handling system are integral. Special attention must be given to location, number and design of loading docks.” {f pallets are utilised, an early step Is to determine the appropriate size./1 ‘The second step in planning warehouse layout involves pallet positioning.“ ‘The most common practice in positioning pallets is at 90 degree, or square placement tothe aisle. The placement of specific products in selected pallet locations is called slotting." Finally, the handling equipment must be integrated to finalise the layout. The path and tempo of product flow depend upon the handling system.¥/1 Several techniques are available to help estimate warehouse size. Projection of the total volume expected to move through the warehouse during a iven period.v'1 '* Agood rule of thumb is to allow for 10% additional space to account for creased volume, new products and new business opportunities. 1 Page 229 - 232 prescribed textbook Logistics Management | Page 17 of 18 National Examination No $ MemorandumQuestion 2 (25) In table format provide a list of advantages and disadvantages of the following transportation modes: © Airfreight + Seafreight © Road freight ‘Advantage | Disadvantage | Advantage | Disadvantag | Advantage _| Disadvantage e [High speed | Limited ‘lowcost | Adoorto | Adoor to door | Limited carrying overiong | carrying service can | door delivery capacity. Vehicles distancey1 | capacity”1 | besupplied | delivery _| service can be | have limited | (large service isnot | done. Road | gross mass volumes of | possible | transport is | limitations. high density | (have touse | not limited to freight). “1 | ports). v1 | afixed routey 1 Doesnot | Unitcostper | Standard | Seafreight | Speed. This | High encounter | consignment | intermodal_| offers a slow | mode environmental en-route | isvery containers | andlow | maintains | impact.1 obstacles.“ | high.“ canbe used | frequency | short door to | Noise and air tofaciitate | service.v'1 | doortransit | pollution (braking freight times. noise and diesel hrandling.1 Alternative | fumes). routes can also be selected.v'1 Not exposed | Airtransport | Traffic Ships could | Ahigh High energy to is directly congestion | be frequency of | consumption. v1 | unfavorable | affected by | atseais _| vulnerable _| service canbe | Road vehicles inwehicle | inclement _| virtually _| toinclement | maintained as | consume more conditions | weather ron weather and | aresult of | fuel than other forlong _| (delayed).”1._| existent “1 | could cause | small carrying | surface transport periods.¥'1 delivery | capacity.v1 | types. delays. v1 va va va va va | va Page 190 - 195 prescribed textbook ¥/LIf presented in table format as requested I Logistics Management| Page 18 of 18 National Examination No S MemorandumINTERNAL, Registered as a Private Higher Eduction Instution win the ‘Deparment of Higher Education and Training n accordance “wih section $4(3} ofthe Higher Education Act, 1887. * HET Registration NR: 2000)HE07I011 ‘adcorp (ePIC WSW eles SO 20.1 Moderators must approve all assessment instruments and memoranda before an assessment is undertaken to ensure that they meet the standard required at the NOF level forthe specified course. Le ygistics Management | - Paper No.5 Date of Assé First Write/Supplementary: ‘Assessor: Janie Koegelenberg Moderator: Eric Solomon EVALUATION: EU ao) Is the assessment type correct for the course? v Doas the assescment follow the stipulated format for the course? T <4 Ts the assessment instrument set at the correct level and acceptable standard for the qualification? 2 Does the assessment instrument adequately reflect the content of the syllabus? | s s Is the mix of questions correct in terms of theory, application and calculations (where applicable), and the degree of difficulty? is the use and style of language understandable and acceptable at the terfiary education | 7 level? _ 2 ‘Can the assessment instrument be completed in the allocated time? v ‘Are all necessary instructions for the leamer provided? 7 ‘Are the marks allocated fairly and correcily (assessment instrument and marking memorandum}? Do the marks allocated to the questions add up to the total marks for the assessment [7 instrument and marking memorandum? ‘Are the answers/guidelines in the marking memorandum acceptable? ‘Are both documents errorfee? ——=—SOSOSC~S~S~S~*S [a all COMMENTS: Very well structured Assessment. APPROVAL: fame: | Ere Solomon Signature” [Eve Solomon Dae: [on o12022 Please return a copy by E-mail to the academic office: (insert e-mail adress) Page 1 off