Exam (elaborations)
TRL4864 EXAM GUIDE (2023 SUPP EXAM)
- Institution
- University Of South Africa (Unisa)
Exam of 20 pages for the course INTEGRATED LOGISTICS MANAGEMENT at Unisa (PAST EXAM ANSWERS)
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Question 1
1.1 Supply chain service outputs needed to address the discrepancies in time, quantity and
assortment
Supply chain is one of the most important factors in business today. In other words, given
different factors in the internal and external environment. The following service outputs can be
used to address different discrepancies.
Spatial Convenience to address Time discrepancies
The first service output, spatial convenience, pertains to the level of shopping time and effort
that will be demanded from the customer. Improving spatial convenience in a supply chain
can be accomplished by offering customers access to products in more locations, which
ultimately reduces the effort required for shopping. For instance, certain manufacturers adopt
a structure that involves department stores, mass merchandisers, and a variety of chain and
independent furniture specialty stores. The varying degree of spatial convenience has
significant implications for the structure of the supply chain and the logistics costs associated
with it. It is evident that certain customers are more willing to invest time and effort in their
search for a specific product or brand compared to others. Thus, all needed products must be
in shelves such that customers may reduce time in searching for these products.
Lot Size to address quantities
The second output of the service pertains to the lot size, which denotes the quantity of units
to be procured in every transaction (Bowersox, Closs, Cooper, & Bowersox, 2020).
Customers who are required to purchase products in large quantities may incur additional
costs for storage and maintenance of the products. If the supply chain permits them to buy in
small lot sizes, they can conveniently align their consumption needs with their procurement.
Customers in developed economies often have the option to choose their preferred lot-size
through alternative supply chains. Alternatively, they can purchase individual rolls from their
nearby grocery or convenience store. Naturally, the supply chain that enables customers to
buy in small quantities typically incurs greater costs, which in turn necessitates higher unit
prices from customers. This would allow customers to the increase or reduce quantities
depending with their needs thereby reducing complaints.
Product variety and assortment
, 0717513144 TRL4864 EXAM PACK 2024 muzavazi47@gmail.com
The fourth service output is related to the variety and assortment of products. Supply chains
can vary in the level of variety and assortment they offer to consumers and end users.
Supermarkets typically participate in supply chains that offer a wide range of products,
including various types and brands, as well as different sizes and assortments. Supermarkets
can have over 10 000 distinct items on their shelves. In contrast, warehouse stores typically
have a smaller selection of products, usually around 5-8000 items, and a more limited range
of brands and sizes. Compared to supermarkets, convenience stores typically offer a limited
variety or assortment of products, often stocking only a few hundred items. In other words,
with an online retail, it is important to have all products in store such that it can improve
customer satisfaction.
1.2 Fundamental customer service attributes to address the problems identified from
consumer complaints
Service reliability
Service reliability refers to a company's capability to carry out all order-related tasks and
provide customers with essential information about logistical operations and status. It
encompasses the combined attributes of logistics (Bowersox, Closs, Cooper, & Bowersox,
2020). In addition to availability and operational performance, reliability encompasses several
other attributes. These include ensuring that shipments arrive without any damage, invoices
are free of errors, shipments are made to the correct locations, and the exact amount of
product ordered is included in the shipment. For example, retailers like Leeroy Merlin that sale
products must then have these products in store such that when customers need them
physically they can access them.
Meeting customer expectations
Customers have several expectations when they do business with a supplier, particularly when
it comes to the supplier's logistical service platform. This includes expectations related to
availability, operational performance, and service reliability. It is common for companies to
have established programmes in place to monitor the performance of their suppliers in regard
to various aspects of logistical performance. In other words, big retailers such as Game are
expected to have a variety of products such as electrical gadgets in store. This means that to
reduce customer complaints, the company must have backup stock that would help in times
of need.
1.3 Importance of the perfect order in online retailing
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