Semester Assignment Due date Unique number
Number
First 01 07/03/2018 809622
Before you attempt this assignment:
Please study the relevant topics in the study material as indicated on pages 11 and 12 of Tutorial
Letter 101/2018 before attempting the assignment.
The assignment includes revision of some of the work covered in MAC2601. It is important to
remember that MAC2601 is a prerequisite for MAC3701 and forms an important foundation on which
MAC3701 builds. We therefore assume in MAC3701 that you are familiar with all the prescribed
MAC2601 work and all the work covered in MAC2601 is examinable in MAC3701 (whether or not it
was revisited in MAC3701).
You are reminded that your assignment must be your own work.
THE MARK YOU EARN FOR COMPULSORY ASSIGNMENT 01 WILL CONTRIBUTE 25%
TOWARDS YOUR YEAR MARK.
This MCQ (multiple-choice questions) assignment must be completed by selecting the correct answers
and submitting these electronically via myUnisa only. To submit the MCQ using myUnisa you must follow
the step-by-step instructions on the myUnisa screen.
Remember:
to submit your answers on or before the due date. Any assignment received after the due date
will not be marked and you will receive 0% for the assignment.
it is your responsibility to ensure your assignment was successfully submitted on or before the
due date. Therefore:
1. ensure you have received the status message “Assignment received in good order”. Keep
your online submission receipt number or a screenshot of your submission receipt as proof of
successful online submission.
2. ensure your list of assignments for MAC3701 on myUnisa was updated. This list will be
immediately updated after the successful submission of an assignment.
1
, MAC3701/Assignment01/1/2018
Assignment 01/2018, FIRST SEMESTER
This assignment consists of 20 multiple-choice questions. Each question must be considered
independently, unless specific reference is made to information in another question.
Each question has only one correct answer from all the given options.
The following information must be used to answer questions 1 to 4.
Mow-shake (Pty) Ltd (Mow-shake) buys and sells two types of lawn-mowers, petrol-run-mowers
(PRM) and the electrical-run-mowers (ERM). Mow-shake currently has 25 retail outlets. The lawn-
mowers are bought from one supplier (Close-cut Limited) only. The company uses the Economic
Order Quantity (EOQ) technique to manage its lawn-mowers (inventories) movements from one (1)
centralised warehouse. Mow-shake operates for 5 work-days a week. There are 240 working days in
each financial year. Average weekly sales is constant throughout each financial year.
Actual results for the current 25 retail outlets for the financial year ended 31 December 2017:
PRM ERM
Total annual demand in units for the 25 retail outlets# 2 400 5 000
Ordering cost per order R25 R25
Purchase price per unit R3 400 R4 200
Holding cost per annum per unit excluding the required R12,50 R12,50
annual return on investment in inventories
Lead time in weeks 3 2
Safety stock in units (lawn-mowers) 5 8
Required rate of return per annum 9,50% 9,50%
# Demand is allocated equally between all the outlets
Budget information for the financial year ending 31 December 2018:
Annual demand per outlet is expected to increase by 5% from 01 January 2018.
25 additional retail outlets will be opened and will start operating from 01 January 2018. The
increased annual demand per outlet is equally applicable to the new outlets.
Close-cut Limited has announced an unavoidable 5,50% inflationary-based purchase price
increase.
The required rate of return is expected to increase by 50 basis points (0,50%) from 01 January
2018 and remain constant throughout the 2018 financial year.
All other information will remain the same as that of the 2017 financial year actual results.
2
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