SECTION $2$:

$[50$marks$]$

Read the case study and answer the questions that follow.

Case Study $-$ Warehouse Design and Layout

Stella's Apparel is a well$-$established clothing manufacturing company with a production facility and warehouse located in Johannesburg. The company distributes its products to customers across South Africa, with major markets in Durban and Port Elizabeth. Despite its long$-$standing presence in the industry, Stella's Apparel has experienced a decline in revenue over the past few years.

One of the primary reasons for the revenue decline is attributed to stockouts at the company's warehouse, leading to missed sales opportunities and customer dissatisfaction. Additionally, there have been increasing complaints from customers regarding poor customer service experiences, including delayed order processing and inadequate communication.

QUESTION $1$:

$43-247$

$(25)$

Evaluate and propose alternative warehouse network designs that Stella's Apparel could consider to address the challenges of stockouts and inefficient operations at its current warehouse in Johannesburg. Provide a rationale for each alternative, considering factors such as proximity to major markets, transportation costs, and operational efficiency. Provide examples from the case study where appropriate.

QUESTION $2$:

Develop a comprehensive inventory optimisation strategy for Stella's Apparel to mitigate stockouts and overstocking issues while ensuring adequate stock levels and minimising carrying costs. Outline specific steps and techniques that the company can implement to improve demand forecasting, establish reorder points, and optimise inventory replenishment processes.

improve

Total Marks: $100$