SCM 1st Opp June 2019

QUESTION 3

3. 1 Classify and distinguish the different types of inventory based on their purpose for a company of your choice giving practical examples. (10 Marks)

3.2 The annual demand for items is 2400 units, the reorder cost is N$ 10 per order, and the holding cost is N$ 0.30 per unit per year. If the suppliers guarantee delivery within 2 days, determine the economic order quantity (EOQ) and the reorder point using the data provided? (10 Marks)

3.3 Provide a comparative analysis of the difference between Supply Chain and Value Chain. Your answer should be in line with the information provided below. (5 Marks)

Supply Chain vs Value

Chain Basis for comparison- Supply Chain- Value Chain

Meaning-

Origin-

Concept-

Sequence-

Objective-

3.4 Strategic decisions in Supply Chain Management may include the following:

(i) plant location decisions

(ii) production decisions

(iii) transportation decisions

(iv) inventory decisions

(v) source decisions.

Discuss the significance of these decisions and give a practical illustration in the context of a Namibian firm of your choice. (15 Marks)

3.5 As supply chains become more complex as a result of global sourcing, supply chain risks increase. Discuss the different categories of risk based on Mason and Towill's original framework with practical examples. (20 Marks)

3.6 The total cost concept places costs into three main categories. Identify and explain the three categories. (10 Marks)