Group assignment
Supply Chain Management
Due date: 20 October 2023
African Rainbow Energy and Power (AREP) and Absa today launched a new
entity called African Rainbow Energy as an African-led, world-class, renewable
energy investment platform. African Rainbow Energy and Power (AREP) is an
African energy company focused on clean energy solutions including
renewables, hydro, gas and complementary transmission investments. One of
AREP’s main objectives is to provide affordable energy solutions in South Africa
and on the African continent through the utilisation of modern and renewable
energy technologies.
AREP will make an initial investment of assets covering wind, solar photovoltaic
and biomass projects with an installed capacity of more than 700 megawatts of
renewable energy. Absa will make an initial investment of R500 million in cash
and transfer R5 billion of its existing renewable energy assets to African
Rainbow Energy. This will result in
African Rainbow Energy having
approximately R6.5 billion of gross assets, covering 31 renewable assets, making
it one of the largest and most diverse independently owned energy businesses
in South Africa. AREP is ready to develop a solar panel manufacturing plant in
South Africa.
In groups of three, do the following:
1. Develop a framework for network design decisions to determine where
AREP’s solar panel manufacturing plant should be located and the
capacity to be assigned.
(40)
2. On the basis of the framework, provide a brief explanation (no longer than
a page) on why you think the location and capacity will maximise the
overall profitability of the resulting supply chain network while providing
customers with appropriate responsiveness.
(10)
Assignment answer not to exceed 5 pages
Total marks = 50 marks