CASE STUDY [30 Marks] Read the following case and answer ALL the questions that follow: KZN floods: PEP owner closes Durban distribution centre after 'significant damage' Value retailer Pepkor has temporarily closed its PEP distribution centre in Isipingo, Durban following floods in KwaZulu-Natal that have damaged transport infrastructure, homes and businesses. Isipingo is one of hardest hit parts of the province, resulting in stranded residents and rescue workers using boats to reach them. "PEP's Isipingo distribution centre in Durban has sustained significant damage due to the floods and supply chain operations have been adversely affected," said Pepkor in a notice on Wednesday. As a result, the retail chain owner closed down the distribution centre temporarily, in order to keep its employees safe and begin its recovery from the "significant damage" it suffered. The group, which has three distribution centres in the country in Durban, Cape Town and Johannesburg, added that it has put contingency plans in place for stores to be assisted by the other distribution centres. It said it could not quantify the full extent of its merchandise, infrastructure and operational disruption losses, but was confident it would have enough insurance cover. "We are deeply saddened by the impact these floods are having on the KwaZulu-Natal community, including our employees, customers and their families. "I would personally like to thank our Isipingo distribution centre team for their courageous actions over the past few days to ensure the safety of employees and commitment to restoring operations as soon as possible," said Pepkor's CEO Leon Lourens. He added that the retailer would keep an eye on the situation and provide updates when necessary. Source: News 24 "KZN floods: PEP owner closes Durban distribution centre after 'significant damage"" Answer ALL the questions in this section. Question 1 (10 Marks) In the context of the Pepkor group, highlight the logistics decisions that will take place in the post-disaster restructuring according to the various levels of logistical decisions. Question 2 2.1 Discuss which forecasting method would be more suitable for determining demand at each of the (10 marks) standing distribution centres (i.e. Cape Town, and Johannesburg). 2.2 Substantiate how a particular forecasting model can be applied in this situation (10 marks)