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MODULE NAME: MODULE CODE:
SUPPLY CHAIN MANAGEMENT 2B: INVENTORY MANAGEMENT SCMA6212/d/p/w
ASSESSMENT TYPE: EXAMINATION (PAPER ONLY)
TOTAL MARK ALLOCATION: 120 MARKS
TOTAL HOURS: 2 HOURS (+10 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Ten minutes is dedicated to reading time before the start of the assessment. You may make
notes on your question paper, but not in your answer sheet. Calculators may not be used
during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set of questions of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. Answer All Questions.
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Read the case study articles below and answer Questions 1 – 4 that follow:
Doulos Foods
We don’t do FMCG, we don’t do shops. At Doulos Foods, we do partnerships. Doulos Food has
extensive experience in Private or ‘White’ Label development in leading edge flavour and packaging
innovation and category invention. Our offering: conceptualization, recipe and formula, product
development, raw materials supply chain, manufacturing, and labelling advise and design.
Leader in innovative product development in food and beverage industry: While most food
production companies target FMCG, Doulos Foods, the global leading producer of instant Mageu
thinks outside the supermarket. We offer end-to-end product development and production for
foods and beverages, to take your concept from the cutting floor to the shop front. Through
research, development, and manufacturing, combined with our ethos of excellence, we work with
companies and individuals to build lifelong connections in the food and beverages industry. Our
range includes instant mageu, liquid mageu, beer, cider, home brew beer, porridges, ice tea –
fortified, meal replacements and many more.
Food - South Africa
• Revenue in the Food market amounts to US$31.27bn in 2024. The market is expected to
grow annually by 7.24% (CAGR 2024-2028).
• The market's largest segment is the segment Confectionery & Snacks with a market volume
of US$6.61bn in 2024.
• In global comparison, most revenue is generated in China (US$1,630bn in 2024).
• Per person revenues of US$503.20 are generated in 2024.
• In the Food market, 1.7% of total revenue will be generated through online sales by 2024.
• In the Food market, volume is expected to amount to 9.14bn kg by 2028. The Food market
is expected to show a volume growth of 3.1% in 2025.
• Average volume per person in the Food market is expected to amount to 130.00kg in 2024.
Adapted from Source: Statista. [n.d.]. Food – South Africa. [Online]. Available at:
https://www.statista.com/outlook/cmo/food/south-africa/ [Accessed 27 August 2024].
Adapted from Source: Doulos Foods. 2021. Home. [Online]. Available at:
https://doulosfoods.com/ [Accessed 27 August 2024].
© The Independent Institute of Education (Pty) Ltd 2024
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Question 1 (Marks: 20)
Q.1.1 Discuss the role of inventory in balancing supply and demand and use practical (10)
examples to show how Doulos Foods can use inventory to address the gap due to
the elapsed time between seasonal production and seasonal consumption.
Your answer will be marked as follows:
Appropriate use of theory: 6 marks in total
Integrated use of application: 4 marks in total
Q.1.2 Explain the first two-steps of the demand planning process and use practical (10)
examples to demonstrate how Doulos Foods could implement each step of the
process.
Your answer will be marked as follows:
Appropriate use of theory: 6 marks in total
Integrated use of application: 4 marks in total
Question 2 (Marks: 20)
Q.2.1 Explain the difference between Materials Requirements Planning (MRP) and (10)
Manufacturing Resource Planning (MRP II) and make recommendations of the
most relevant system for Doulos Foods to implement within their supply chain
operation.
Your answer will be marked as follows:
Appropriate use of theory: 6 marks in total
Recommendation (at least two application points): 4 marks in total
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Q.2.2 Apply the first two-steps of the purchasing process in relation to Doulos Foods. (10)
Your answer will be marked as follows:
Appropriate use of theory: 6 marks in total
Integrated use of application: 4 marks in total
Question 3 (Marks: 30)
Doulos Foods should pay key attention to the inventory within their supply chain and ensure that
the inventory levels held contribute to the business strategy and the provision of effective and
efficient customer service.
Write an essay of no longer than 2 – 2 ½ pages in which you argue for the implementation of
inventory control by Doulos Foods. The essay should draw from the articles above, but it must
demonstrate your own understanding.
Your discussion should use practical examples that are relevant to the business of Doulos Foods to
substantiate and should address the following:
1. Explain any two inventory costs and provide practical examples of how Doulos Foods
should manage such costs.
2. Describe any three inventory measures that Doulos Foods can utilise to measure the
efficiency and effectiveness of its inventory management system.
NB: Your answer should not exceed 2 – 2 ½ pages. Markers are to stop marking after the
threshold of 2 ½ pages has been reached.
Your answer will be marked as follows:
Criteria Points for Consideration Marks
1. Structure of • Correct essay structure. /3
essay and clarity of • Logical and coherent flow.
writing • Academic tone and clear writing.
2. Content • Overview of any two inventory costs /6
• Application of each cost to the case study /4
• Identifying each measure /3
• Examining the measure in relation to the case study /9
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3. Substantiation, • Comprehensiveness of answer. /5
Overall Argument, • Balance of breadth and depth.
and synthesis • Ability to build a coherent essay from content
• Cohesion and correctness, i.e., individual elements of
theory and application, combine to form a
comprehensive evaluation
Total /30
Question 4 (Marks: 35)
Q.4.1 Discuss how Doulos Foods can mitigate the risks of theft, product degradation, (25)
human error, and warehouse equipment risks.
Your answer will be marked as follows:
Appropriate use of theory: 12 marks in total
Integrated use of application: 8 marks in total
Synthesis (cohesion and correctness i.e., individual 5 marks in total
elements of theory and application combine to form a
comprehensive evaluation)
Note: your answer should not exceed 1 – 1½ pages.
Q.4.2 Explain how Collaborative Planning, Replenishment and Forecasting (CPFR), (10)
and internal business processes mitigate the warehousing and inventory risks for
Doulos Foods.
Your answer will be marked as follows:
Appropriate use of theory: 6 marks in total
Integrated use of application: 4 marks in total
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Question 5 (Marks: 15)
As a supply chain management student, you have been through a variety of fundamentals of
inventory management throughout the duration of this module. This question requires you to
reflect on your knowledge and understanding of inventory management and the application of the
key concepts, practices, and techniques thereof for the achievement of a competitive advantage.
You are required to write a report, up to a maximum of one page, where you reflect on the
following:
• The role of inventory management as a critical driver for the achievement of a competitive
advantage.
• Your opinion of how a business can deliver effective and efficient customer service through
inventory management.
• Discuss any three components of inventory management that were new to you.
• Discuss any two components of inventory management, for which you now have a better
understanding.
• Which component/aspect of inventory management you enjoyed learning about the most
and could this be a potential career path? Why or why not?
Note: this is a reflection-type question and does not require research, but rather your opinion
and insights into the module you have completed.
END OF PAPER
© The Independent Institute of Education (Pty) Ltd 2024
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