Part A $(10$ Marks$)$

Maiza $($Pty$)$ Ltd$,$ a South African company that buys maize from farmers, stores the cereal in silos before it is transferred to the mill. Mr$.$ Grain is responsible for determining how much maize needs to be bought from farmers, as well as when maize has to be milled and the quantities involved in Each operation. Once the maize has been processed, the meal is poured into bags, which are then transferred to the warehouse, where they are stored awaiting transportation to Maiza's customers.

YOU ARE REQUIRED TO: $($In a Tabular format$)$

List the six functional areas of Maiza's inventory and production cycle

For each functional area listed, describe how it is applied to Maiza.

Part B $(10$ Marks$)$

Stallion Pty $($Ltd$)($Stallion$),$ a company manufacturing catalytic convertors for an international motor vehicle company, has its factory in Cape Town. Once the convertors have been manufactured, they are shipped free$-$on$-$board from Cape Town to the United States.

The two components of the cost of the convertors are:

The steel, the price of which fluctuates weekly

Labour $($there has been labour unrest in the motor manufacturing sector over the last few years, which has put pressure on the industry$).$

Inventory is held until a shipping container has been filled, which is done under the terms of Stallion's agreement with its American customer to keep transportation costs down. However, the customer charges warehouse rental for the storage and security of the goods up until the convertors are loaded onto the ship.

You are required to:

With reference to the information provided:

List all possible risks that Stallion could face with regard to the manufacture and sale of convertors to its foreign customers. $(7)$

List all possible risks that the foreign customer could face with regard to the purchase of convertors from Stallion. $(3)$