Question 1 (Marks: 30) Read the summary below and answer the questions that follow: Maurice, a German businessman on an entrepreneurship development mission in South Africa, decided to start Quick and Clean, a dry-cleaning franchise, in Pretoria. Reneilwe was strikingly selfempowering, therefore, Maurice promoted her to be a supervisor when he opened a new branch. Two years into the program, Maurice decided to empower Reneilwe to open and run her own branch (franchise) in her township; the distinction about this branch was that it was attached to a medium-sized warehouse at the back, which served as a materials supply point for all the other branches around Pretoria. Maurices plan to open at least ten (10) small dry-cleaning businesses in Pretoria within the next three years was on track, this third franchise had warehousing and distribution capabilities, to ensure continuous supply of materials to the other branches. Q.1.1 Discuss continuity in production and marketing and cost savings and hedging against price uncertainties, as reasons for holding inventory, in relation to the business of Quick and Clean. (10) Q.1.2 With the use of practical examples, discuss how inventory carrying costs and ordering costs can impact Quick and Cleans operations. (10) Q.1.3 Briefly compare insourcing and outsourcing transport and recommend which approach would be best for Quick and Clean. Brief comparison 6 marks Recommendation 4 marks (10)