Faculty of Management Sciences
Department of Logistics & Supply Chain
Management
Vanderbijlpark Campus
Andries Potgieter Blvd
Vanderbijlpark, 1900, South Africa
Private Bag X021
Vanderbijlpark, 1911, South Africa
Mana
www.vut.ac.za
+27(0)16 950 7840
+27(0)16 950 7840
mphot2@vut.ac.za
INDIVIDUAL ASSIGNMENT 1
DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
Subject
: Diploma Logistics & Supply Chain M
Subject code
: BBASZ4A
Marks
: 50 Marks
Date
: 12 May 2023
Examiner
: Dr M.T Tlale
INSTRUCTIONS TO CANDIDATES
1. Answer all questions.
2. This is an individual assignment.
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LAMB’S AUTOMOTIVE SUPPLIES
Molly Lamb has been a car aficionado since she was a teenager. This passion led her to open an
automotive supply store. Her primary customers are small car repair shops. Many of these shops
service a variety of makes and models. The other customer base is car buffs such as herself. These
customers are car hobbyists and they own “classic” cars. They often buy an older clunker and rebuild
it. They prefer to rebuild it as much as they can to the original specifications. Consequently, finding
parts for these older makes/models is a challenge and building an inventory is even more difficult.
Because Molly is such an old car enthusiast, she has often scoured the Internet, junk yards, and other
places for usable old car parts. Molly has a section of her warehouse set aside for “classic” car parts,
from starters, to hub caps, to door handles. There is no real competitor in this segment of her business.
While a few places may have the odd part or two for older models, Molly has a significant inventory
for most makes and models going back to the 1940’s. Because of the generation of the customers she
is serving, the newest make/model is from the early 1970’s.
The remainder of Lamb’s Automotive Supplies’ inventory is for more recent makes and models, those
built within the last 10 years. This section of the inventory is much larger than the one for the “classic”
cars; however, despite its size, its dollar value isn’t much higher. One challenge Ms. Lamb has is
warehouse space. Inventory capacity is basically directly related to space. Therefore, in order to serve
both customer segments as best she can, Molly must maximize her warehouse space.
Although Molly is aware of what inventory she has on hand, she has never actually used a specific
inventory system. Now that her warehouse is reaching capacity, Molly realizes she must have a better
inventory management process. Adding more warehouse space isn’t an option. She must use the
space she has more efficiently. Molly begins to ponder how she can do this without creating a potential
inventory shortage for either customer segment.
DISCUSSION QUESTIONS
1. Since the parts for the “classic” cars are difficult to obtain, Molly has decided that she must
set aside a certain percentage of the warehouse for these parts. When locating a specific part
for this customer segment, Molly has to buy it and place it in her inventory because it may
never return once the opportunity passes. How does this affect the inventory management of
the parts for newer cars? What systems or processes do you recommend to Molly to ensure
she does not develop shortages for the parts for the car repair shops? Explain how your
recommendation helps Molly? 10
2. Considering Molly’s situation and her two distinct customer bases, do you think the ABC
classification system would benefit her? If so or if not, explain why? 10
3. Explain whether the EOQ or statistical reorder point methods can enable Molly to better
manage her “classic” car parts inventory? 10
4. Describe and draw a supply chain for a bicycle repair shop and list the important supply chain
members? 10
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5. When did the idea and term, supply chain management, first begin to be thought about and
discussed? Which two operations management practices became the origin of supply chain
management? 5
6. How has the recent global pandemic impacted supply chain management? 5
TOTAL MARKS 50
INSTRUCTIONS TO CANDIDATES FOR COMPLETING AND SUBMITTING ASSIGNMENT
The assignment should be compiled together with a turn-it-in score (plagiarism check) that does not
exceed 20%. The layout of the assignment should incorporate the following:
 Font type: Times new roman or Arial
 Font size: 12
 Line spacing: 1.5
 Justification i.e. alignment of text both to the right and left
 Cover page with the class group
 Table of content
 Page numbering
 Introduction and conclusion
 individual Assignment
 Vutela Submission and a hard copy at the office
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