2.3 Read the hypothetical scenario below and answer the question that follows: A consumers experience of retailing in South Africa Angelique and James are two working-class parents. Angelique and James work daily from 05:00 am to 7:00 pm to provide for their children, Mich and Tich. Because of their busy schedule, they don't have time to go about and enjoy shopping obligations for the household, as most other parents do. Instead, they must plan each errand to prioritise their funds to fit within their family's financial limits. It is the beginning of the 2024 school year, and Angelique and James must allocate time to buy some school necessities, such as new school uniforms and blazers for Mich and Tich. The increasing inflation levels and the overall rise of costs forces Angelique and James to save up in advance to provide these necessities. As a hobby, Angelique and James collect adverts from ACD Clothing and Eazy Clothing where the best deals on school uniforms are currently available. Both are well-known and respective high-quality brands. Because of their budgetary constraints, they decided to go to ACD Clothing first because they had the best deals on offer buy two pairs and receive your third one for absolutely free. These specials were included for the following stock items: shoes, socks, shirts, blazers, pants and ties. This was a clear win-win for Angelique and James. Both have been loyal customers of ACD Clothing, and it is also the closest retail store to their residences. Upon Angeliques arrival at ACD Clothing, she asked at the reception about the adverts promoted, and received nothing but a rude nod and glimpse from the ACD employees. The manager of the store also reeked of alcohol. Angelique and James decided to carry on and walked through the aisles, and to their disappointment, they quickly realised most stock items were not on sale and most stock items were not available on the shelves. To their disappointment and frustration, they left the store and went to Eazy Clothing, a few hundred metres away. Angelique and James were able to buy all the necessary goods they required within 5 minutes. On their way back home, they decided that they will never support ACD Clothing stores again and they will tell everyone in their area about the horrific experience they had encountered at the ACD Clothing store. She will, in future, rather support Eazy Clothing, although it is a bit more expensive. *Hypothetical scenario.

2.3.1 Discuss the consequence of the cost of a lost sale concerning an organisation's stock and inventory management. Ensure to apply your answer to the scenario provided above. (22 marks) Student note: Most marks will be awarded for applying the theory to the scenario. Do more than merely replicate theory as is from the textbook.

Note: Grader's discretion is advised as the answer/solution provided above, merely serves as a guideline to the grader to apply his/her own discretion. Discretion must be aligned with the learning outcome of the module, the requirements stipulated in the question and the grading rubric provided.

2.3.2 Provide one (1) practical solution for the costs of a lost sale in managing stock and inventory processes. Apply your answer to the scenario provided in question 2.3.1 above. (7 marks)

Grading Rubric