Question 4: (25 Marks) Read the hypothetical scenario below and answer the question that follows: The South African Retail sector Dorothy is a go-getter mom in a family of three boys. Dorothy lost her husband in a freak car accident 4 years ago, and since then life has been tough. Dorothy does her best to provide for her kids Michael, John and Bjorn, in between two jobs, and being a single working mom. Due to Dorothys busy schedule, she does not have excess time available to wander around and enjoy shopping. Dorothy needs to plan each errand run to ensure she prioritises her finances to fit within her familys budget constraints. It is the beginning of the 2023 school year and Dorothy needs to buy new school uniforms for her sons. Dorothy has been saving up for the past six (6) months. During the past six months, Dorothy had enough time to collect adverts from Mr Broom Clothing and JJ stores where the best deals on school uniforms are currently available. Both are well-known and respective high-quality brands. Due to Dorothys financial constraints, she decided to go to JJ stores 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 and obvious win-win for Dorothy. Dorothy has been a loyal customer of JJ Stores and it is also the closest retail store to her residence. Dorothy put in leave with both of her employers, and off she went searching for school uniforms. Upon her arrival at JJ stores, Dorothy encountered the reception, asked about the adverts promoted, and received nothing but a rude nod and glimpse from the JJ store employees. Dorothy decided to walk through the aisles, and to her disappointment, realised most stock items were not on sale and most stock items were not available on the shelves. Dorothy immediately left the store and went to Mr Brooms clothing. She was able to buy all the goods she required within 5 mins. On her way back home, she decided that she will never support JJ stores again and she will tell everyone in her area about the bad experience she encountered at JJ stores. She will, in the future, rather support Mr Broom's clothing, although it is a bit more expensive. *Hypothetical scenario. 4.1 Discuss the consequence of the cost of a lost customer in the management of stock and inventory in an organisation. Ensure to apply your answer to the scenario provided above. (20 marks) Note to student: The majority of marks will be awarded for applying the theory to the scenario. Do not merely replicate theory as is from the textbook. - A maximum of four (4) marks may be awarded for theoretical explanation. - A maximum of sixteen (16) marks may be awarded for applying the theory to the scenario. - Refer to the grading rubric below, which provides a detailed explanation of how to address the requirements of the question. Grading Rubric: Theory: 0 marks 1 - 2 marks 3 - 4 marks The student should be able to: Demonstrate his/her understanding regarding the consequence of the cost of a lost customer in the management of stock and inventory. No answer was provided. The student managed to partially discuss the consequences of the costs of a lost customer in the management of stock and inventory. The student provided a detailed discussion of the consequences of the costs of a lost customer in the management of stock and inventory. Application: 0 - 5 marks 6 - 10 marks 11 16 marks The student should be able to: Demonstrate his/her understanding regarding the consequence of the cost of a lost customer in the management of stock and inventory, in relation to the scenario provided. The student did not manage to accurately apply the cost of a lost customer in the management of stock and inventory. The student managed to accurately apply the cost of a lost customer in the management of stock and inventory. The student managed to provide an accurate discussion in the application of the cost of a lost customer in the management of stock and inventory. Note to grader: 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. 4.2 Identify the most important reasons to keep stock and the most important function of inventory. (5 marks) Question 5: (11 Marks) Read the statement provided below and answer the questions that follow: Finished goods - are the costs that a business incurs when placing an order. Meyer, A. Schutte, P. Wheeler, B. Kufandarerwa, R. Makiwa, P. Cawthra, T. Ruziwa, R. RourkeMcGill. Nokhepheyi, Y. Zandberg, E. 2020. Principles of Stock Control and Inventory Management. First Edition. Westlake Business Park, Cape Town: Edge Learning Media. 5.1.1 Is the above statement True or False? (1 mark) 5.1.2 Provide an explanation (if the statement is true) or a correction (if the statement is false), and provide a practical example to support your choice. (4 marks) 5.1.3 List six (6) factors that businesses consider when determining finished-goods inventory quantities. (6 marks)