Question: Please help with question 1.3 and 1.4 SECTION A ANSWER ALL THE QUESTIONS IN THIS SECTION. SHORT QUESTIONS SUBTOTAL: 50 MARKS VAP operates two production


Please help with question 1.3 and 1.4
SECTION A ANSWER ALL THE QUESTIONS IN THIS SECTION. SHORT QUESTIONS SUBTOTAL: 50 MARKS VAP operates two production plants: one in Upington and one in Beaufort West. It currently provides the South African market with aloe-based health products through a network of regional depots: one in each province. Each of the depots arranges local transport to serve the health shops in retail shopping centres and rural clinics. The products are not time sensitive, are of relatively low value, but ar lightweight. The future growth of VAP's cost-sensitive market is undoubtedly Gauteng, but is also considering developing the southern African market through a future export drive. These exports will probably be sent via the OR Tambo international Airport in Johannesburg. The future demand profile will probably be as follows: Gauteng: 40% Western Cape: 20\% Kwazulu-Natal: 10% Eastern Cape: 10\% Africa (exports): 20% The firm is experiencing increasing competition due to the introduction of similar imported products from Brazil, and it urgently has to address escalating costs in its supply chain. Source: De Villiers, G, Nieman, G \& Nieman, W. (2017:243) 1.1 Define Logistics Management ( 5 marks) 1.2 List performance measures that VAP might encounter ( 5 marks) 1.3. You have been tasked with redesigning their logistics channel strategy and network design, with specific reference to the followi - Number of depots - Location of depots - Inventory costs - Transport costs - Outsourcing opportunities (20 marks) 1.4 Discuss the components of a logistics master plan ( 20 marks)Step by Step Solution
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