TRL309D/101/3/2011

STREPIESKODE
BAR CODE

Department
TRANSPORT ECONOMICS,
LOGISTICS AND TOURISM

Logistics Strategy
TRL309D

Tutorial letter: 101/2011

First and Second Semester

LECTURER

Mr J L Theron
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Dear Student,

PLEASE read this tutorial

letter urgently.

It contains very important

information regarding this
module.

Please make sure that you

read the whole document
thoroughly and carefully.

THANK YOU!
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INDEX

1 GENERAL INFORMATION
2 COMMUNICATION WITH THE UNIVERSITY
3 TUTORIAL MATTER
4 PRESCIBED BOOK
5 ASSIGNMENT SYSTEM
6 COMPULSORY ASSIGNMENTS
7 EXAMINATIONS
8 EXAMPLE OF AN EXAMINATION PAPER
9 PREPARING FOR THE EXAMINATION
10 CONCLUDING REMARKS

Dear Student

We have pleasure in welcoming you to the module on Logistics

Strategy (TRL309D) and trust that you will find your studies in this
module interesting, stimulating and instructive.
 4

1 GENERAL INFORMATION

This tutorial letter deals only with matters concerning the module on
Logistics Strategy (TRL309D). You will also receive a general
tutorial letter (Tutorial Letter 301 TRLALLH/2011) which is sent to all
undergraduate students in the Department of Transport Economics,
Logistics and Tourism containing information on matters such as
administration, communication with the University, examination
admission, etc.

2 COMMUNICATION WITH THE UNIVERSITY

ADMINISTRATIVE QUERIES

Contact addresses of the various administrative departments are

included in the booklet My Studies @ Unisa, which you received with
your tutorial matter. This booklet contains information on how to
contact the University (for example, to whom you can write for
different queries, important telephone and fax numbers, addresses
and details of the times certain facilities are open).

All administrative queries relating to study material, tutorial letters,

assignments, examinations etc, should be directed to the UNISA
Contact Centre (UCC). Enquiries will then be channeled to the
respective, applicable Departments.

Always have your student number at hand when you call the
University.
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The UCC contact details are as follows:

Tel – RSA: 086 167 0411

Tel – International: +27 11 670 9000
Fax – RSA: (012) 429 4150
Fax – International: +27 12 429 4150
Email: study-info@unisa.ac.za

ACADEMIC QUERIES

Your lecturers’ contact details are as follows:

Mr. J .L Theron
« 012 429-4316
¡ Therojl@unisa.ac.za

Mr. J.W Barendrecht

« 012 429-4576
¡ Barenjw@unisa.ac.za

Please take note that lecturers are here to assist you with your
academic work. If you struggle with the work or any concepts or
terms are unclear, please do not hesitate to contact the lecturers of
the module. For all other queries, please phone the UNISA Contact
Centre (UCC) or refer to My Studies @ Unisa.

Postal Address

The UNISA postal address is:

PO Box 392
UNISA
0003
 6

Please use this address to post your assignments to the University

(more information on the assignment system appears in section 4 of
this tutorial letter).

3 TUTORIAL MATTER

The study material for TRL309D consists of the following:

• Tutorial Letter 301 (general tutorial letter to all students in this

Department containing important administrative information)
• Tutorial Letter 101 (module specific tutorial letter, i.e. this
document)
• One study guide
• One text book that you must buy immediately (see section 4)
• Mark reading sheets (for your assignments)
• Additional tutorial letters will be sent to you during the course of
the semester with feedback on your compulsory assignments.

The Department of Despatch should supply you with the above

mentioned tutorial matter for this unit of study.

INVENTORY LETTER

At the time of registration, you will receive an inventory letter that will
tell you what you have received in you study package and also show
items that are still outstanding. Check the study material that you have
received against the inventory letter. You should have received all the
items listed in the inventory, unless there is a statement like “out of
stock” or “not available”. If any item is missing, follow the instructions
on the back of the inventory letter without delay.
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PLEASE NOTE: If some of your tutorial matter was not available

when you registered, it will be posted to you as soon as possible.
However, it is your responsibility to follow up on this matter and
enquiries must be directed to the Department of Despatch via the
UNISA Contact Centre (UCC). Take note: ALL TUTORIAL LETTERS
CAN BE DOWNLOADED FROM myUnisa. Also see the also booklet
entitled My Studies @ Unisa on what to do. Your lecturers cannot
help you with missing study material and please do not delay in
finding out where your study material is – this could have a very
negative effect on the outcome of your studies in this module.

4 PRESCRIBED BOOK

Your prescribed book for this module is:

Chopra, S. & Meindl, P. 2010.

SUPPLY CHAIN MANAGEMENT:
Strategy, Planning and Operation.
Fourth Edition. New Jersey: Pearson.

NOTE: You must purchase the prescribed book immediately. The

names of the official booksellers appear in the new My
Studies @ Unisa
 8

5 ASSIGNMENT SYSTEM

For students to fully benefit from our formative tuition and assessment
you have to complete two (2) compulsory assignments in each
semester for TRL309D.

Your mark for the first compulsory assignment will contribute 5%

and your mark for the second compulsory assignment will
contribute 25 and together these two (2) compulsory assignments will
contribute 10% towards your final mark for the module. This will be
your semester mark. Your examination mark will contribute 90%
towards your final mark for the module, which makes up the total of
100%.

Therefore, your final mark will be calculated as follows:

TRL306A Weight
Assignment 1: 5%
Assignment 2: 5%
Examination: 90%
TOTAL: 100%

Furthermore, you have to achieve a subminimum of 40% in the

examination for your semester mark to count towards your final mark.
In other words, if your semester mark is 60% but your examination
mark is only 35%; your final mark will be 35%.

Your first compulsory assignment will be required in order to obtain

admission to the examination. Admission will be obtained by
submitting the compulsory assignment and not by the marks you
obtain for it. Just remember that the mark you achieve will contribute
5% towards your semester mark (as explained above).
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Please ensure that your assignments reaches the University before

the due date – late submission of the assignments will result in
you not being admitted to the examination!

If there is a delay in your study material reaching you, it is your own

responsibility to follow it up with the University by phoning the
UNISA Contact Centre. Don’t wait until one week before the due date
of your assignments to contact the Despatch Department. Make sure
that you receive all you study material on time!

6 COMPULSORY ASSIGNMENTS

DUE DATES AND UNIQUE ASSIGNMENT NUMBERS

Each assignment has a due date. The due date is the date on which
the assignment must be at UNISA and not the date on which you
post or submit it. Be sure to plan for possible delays in the post! You
may submit the assignments either by post or electronically via
myUnisa, but assignments may not be submitted by fax or email.

Every assignment which is marked by the computer is given a unique

number. The number contains information on the course code and
assignment number. When the computer reads the mark reading
sheer with, say, the unique number 123456, it “knows” that it is the
first assignment for TRL309D in the first semester (example only).

For detailed information and requirements as far as submission of

assignments are concerned, please refer to My Studies @ Unisa that
you received with your study material.
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VERY IMPORTANT: If you send you assignments by post, please

make sure that you make a copy of every assignment that you
send in to the University and record the date that you did so. It
does unfortunately happen that assignments sometimes get lost
in the post and you will be required to prove on which day you
submitted your assignment if this is ever the case.

After the due date for each assignment, all registered students will
receive the solutions, or guidelines for solutions to, or a discussion of
the assignment in the form of a tutorial letter. The due dates and
unique numbers for the compulsory assignments for both semesters
are as follows:

1st SEMESTER
Course Code: TRL309D

Assignment 1 Assignment 2

Due date Unique number Due date

20110314 867543 20110411

2nd SEMESTER
Course Code: TRL309D

Assignment 1 Assignment 2

Due date Unique Due date

number
20110822 746310 20110919
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SUBMISSION OF ASSIGNMENTS

For detailed instructions on how to use the mark reading sheets to

answer multiple choice questions, refer to My Studies @ Unisa, which
you received with your tutorial matter.

myUnisa

The online learning system of UNISA is called myUnisa. The web

address for myUnisa is https://my.unisa.ac.za. If you access this
website for the first time you will be required to complete a join
procedure and allocate yourself a password. Note that you cannot join
myUnisa without a functional and valid email address. Make sure that
you verify all your details carefully when you complete the join
procedure. Refer to Tutorial Letter 301 TRALLH for detailed
information how to join myUnisa as well as how to submit your
assignments online.

You can also submit you assignment online via myUnisa. When you
submit your assignment online, you have to:

• Log in with your student number and password.

• Select the module from the orange bar.
• Click on assignments in the left menu.
• Click on the assignment number you want to submit.
• Follow the instructions.

MULTIPLE CHOICE ASSIGNMENTS

The first assignment for both semesters for TRL309D is multiple

choice questions and must be answered on a mark reading sheet.
These assignments have unique assignment numbers for the
computer.
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Mark reading sheets are read into the computer immediately when
they are received at Unisa and are marked by the computer on the
due date.

Very important:

• Work carefully through the relevant study material before you

tackle the assignments.
• Work out your answers on a separate piece of paper before you
complete the mark reading sheet.

Instructions on how to use mark reading sheets to answer multiple

choice questions are contained in the 2010 “My Studies @ Unisa”.
Read these instructions CAREFULLY and follow them EXACTLY to
avoid making mistakes.

Remember!

· You have a choice between four (4) alternatives for each

question ([1] [2] [3] [4]).
· There is only one correct answer to each question.
· Only mark reading sheets may be used.
· Colour in the correct block with an HB pencil.
· Fill in your student number correctly.
· Send only your mark reading sheet to the Assignment Division
in the appropriate envelope. You do not have to complete an
assignment cover.
· Make sure that you have enough mark reading sheets

Do not!

· Do not make more than one mark per question.

· Do not tear or fold the mark reading sheet.
· Do not staple the mark reading sheet to another piece of paper.
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· Do not colour outside the block.

· Do not colour in the blocks with a pen.
· Do not make corrections with Tipp-Ex.
· Do not submit answers on a written sheet of paper.
· Do not try to repair a torn mark reading sheet with sticky tape -
use another one

When you submit your assignment online, you have to:

• Log in with your student number and password.

• Select the module from the orange bar.
• Click on assignments in the left menu.
• Click on the assignment number you want to submit.
• Follow the instructions.

PLEASE NOTE: ALL enquiries about assignments must be

directed to the UNISA Contact Centre only and not to lecturers

COMPULSORY ASSIGNMENTS

ASSIGNMENT 1

1st SEMESTER – DUE DATE : 20110314

Indicate on the MARK READING SHEET for each question which

alternative from [1] to [4] is correct:
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1. Which on of the following represents the stages of a supply

chain?

a) manufacturers
b) suppliers
c) retailers
d) financiers
e) customers
f) marketers

[1] a, b and c
[2] a, b, c and e
[3] c, d, e and f
[4] b, c and d

2. Which one of the following is NOT a key element in achieving

strategic fit?

[1] The role of each stage in the supply chain must be

aligned to support the supply chain strategy.
[2] The functions of a company must structure their
processes and resources appropriately to be able to
execute the competitive strategy successfully.
[3] The most important focus point or element for strategic fit
is the profitability of the supply chain.
[4] Each functional strategy must support the other
functional strategies to be able to execute the competitive
strategy.

3. Which one of the following includes the logistical drivers?

a) information
b) facilities
c) sourcing
d) inventory
e) pricing
f) transportation
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[1] a, b and c
[2] a, c and f
[3] b, c and d
[4] b, d and f

4. Which one of the following represents the measures that are

influenced by the structure of the distribution network?

a) returnability
b) time to the manufacturer
c) order visibility
d) response time of the suppliers
e) product variety
f) customer experience

[1] a, b and e
[2] b, c and f
[3] a, c, e and f
[4] c, d, e and f

5. Which one of the following is a supply chain network design

decision according to the classification of Chopra en Meindl?

[1] Which supply sources should feed each facility?

[2] Which capital and growth strategy should be followed?
[3] Are there regional development possibilities?
[4] What will the influence of the exchange rate and demand
risk be?

6. Which one of the following ranks the sources of risk in the

correct order that can impact on the most supply chains?

a) inflexible supply chain technology

b) currency fluctuation
c) geopolitical uncertainty
d) natural disasters

[1] a, b, c and d
[2] a, c, d and b
[3] c, d, b and a
[4] d, c, b and a
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7. Which one of the following is NOT an aspect that managers

should consider to make better global network design
decisions, under uncertainty, in practice?

[1] use financial analysis as an input to decision making

[2] use estimates along with sensitivity analysis
[3] use cross-functional metrics to evaluate
[4] combine strategic planning and financial planning during
network design

8. Which transportation mode transported the most freight,

according to freight tons, from 1993?

[1] truck
[2] water
[3] rail
[4] pipeline

9. How many of the following mechanisms can third parties use

to grow the supply chain surplus?

a) aggregation of the inventory of various customers

b) aggregation of the transport function
c) aggregation of the warehousing needs
d) aggregation of information

[1] one
[2] two
[3] three
[4] four

10. Which one of the following represents the managerial levers

that will increase total supply chain profits with better
coordination?

a) improving operational performance

b) building strategic partnerships
c) improving information accuracy
d) aligning goals and incentives (bonuses)
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[1] a, b and c
[2] b, c and d
[3] a, c and d
[4] a, b, c and d

ASSIGNMENT 2

1st SEMESTER – DUE DATE : 20110411

Briefly explain the importance of the customer focus and the

concept of strategic fit for logistics strategy.

ASSIGNMENT 1

2nd SEMESTER – DUE DATE : 20110822

Indicate on the MARK READING SHEET for each question which

alternative from [1] to [4] is correct:

1. Which one of the following represents the most of the

questions, that could be addressed to a global manufacturer
such as Toyota, regarding the configuration and capability of
the supply chain?
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a) How should the flexible investment be valued?

b) What capacity should each plant have?
c) What kind of flexibility should be build into the distribution
system?
d) Which action steps may be taken during product design
to facilitate the flexibility?

[1] a and b
[2] b and d
[3] b, c and d
[4] a, b, c and d

2. Which one of the following contains the obstacles that can

make strategic fit difficult?

a) decreasing product life cycles

b) difficulty in executing new strategies
c) supply demand must be satisfied at the lowest cost
d) maximise performance at the lowest product cost

[1] a and b
[2] b and c
[3] a, b and c
[4] b, c and d

3. How many of the following aspects should be included in a

scorecard to determine how e-business will affect a supply
chain?

a) the impact of information cost

b) the impact on customer service
c) the impact of efficient funds transfer
d) the impact on performance

[1] one
[2] two
[3] three
[4] four
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4. It is important for a company to identify the mission or

strategic role of each facility in a global network. Which one of
the following is NOT a strategic role for such facilities?

[1] Facility that leads in the development of technologies and

processes.
[2] Facility that employ international skills.
[3] Low cost facility for international distribution.
[4] Regional facility to gain local skills.

5. Which one of the following represents the most practical

decisions that must be taken to develop an efficient transport
network?

a) Use information technology to decrease costs and

improve responsiveness.
b) Consider the best combination of in-house and
outsourced transportation.
c) Get the best possible alignment between the
transportation strategy and the competitive strategy.
d) The transportation network should be designed with
flexibility.

[1] a and c
[2] a, b and c
[3] a, b and d
[4] a, b, c and d

6. Which one of the following represents the advantages of

effective sourcing decisions?

a) Appropriate contacts are profit wise advantageous for the

supplier and the buyer.
b) Design collaboration is most important for products that
contribute the highest value.
c) For better profitability it is preferable to handle orders
separately.
d) Increased competition in the market will increase the
average prices that must be paid.
 20

[1] a and b
[2] a and c
[3] a, b and c
[4] b, c and d

7. Which one of the following is a characteristic of information

that is useful for supply chain decisions?

[1] Information should not be accessible, but processing

should be possible be make it accessible.
[2] Important data should not be captured immediately, but
should be processed in useable format.
[3] All information should not be 100% accurate, but must be
able to paint a clear picture.
[4] Different information with different stakeholders can
speed up action plans.

8. Which one of the following represents the most factors that

can contribute to the effectiveness of a logistics organisation?

a) employee characteristics
b) environmental characteristics
c) organisational characteristics
d) managerial policies and practices

[1] a, b, c and d
[2] a, b and c
[3] a, c and d
[4] b, c and d

9. Which one of the following is NOT a shortcoming of the

profitability reports used by executives in major corporations
or companies?

[1] Full manufactured costs, which sometimes includes a %

for profits, are used in calculating costs of goods sold.
[2] Costs of transportation, warehousing, sales commissions
and sales promotions are not reported as separate items.
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[3] Opportunity costs such as inventory carrying costs and a

charge for other assets employed do appear on the
profitability reports.
[4] Reports that covers more than one year are not adjusted
for inflation.

10. Which one of the following represents the most steps in the
corporate planning process that must be performed before the
strategic logistics plan can be formulated?

a) Identifying possible target markets.

b) Evaluating target markets.
c) Formulation of supply chain strategy and objectives.
d) Evaluation of supply chain structure alternatives.

[1] a and c
[2] b and d
[3] b, c and d
[4] a, b, c and d

ASSIGNMENT 2

1st SEMESTER – DUE DATE : 20110919

Briefly discuss the components of an optimal logistics organisation

and the approach to develop an optimal logistics organisation.
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7 EXAMINATIONS

Examinations for the first and second semester take place during
May/June 2011 and October/November 2011 respectively. Exact
dates will be communicated to you by the Department Examination
in due course.

FORMAT OF THE EXAMINATION PAPER

The examination for this module consists of a two-hour paper which

comprises two sections, A and B.

Section A is compulsory and consists of 20 multiple-choice

questions (MCQs) which carry a total of 20 marks. The compulsory
assignments should be viewed as examples of the kind of multiple-
choice questions that you can expect in the exam.

MAKE SURE THAT YOU CAN ANSWER BOTH MULTIPLE-CHOICE

AND WRITTEN QUESTIONS IN THE EXAM!

Section B consists of three (3) questions carrying 25 marks each.

You must answer any TWO (2) of the three (3) questions in
section B totalling 50 marks. Each question in Section B may or may
not contain sub-sections but in general the questions are of a longer
nature.

If you answer all three (3) of the long questions, only the first two
(2) that you answered will be marked. You will not benefit in any
way if you answer all three long questions!
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HINTS AND TIPS FOR THE EXAM

When answering an examination paper, there are some useful tips to

keep in mind. The following list should assist you when answering the
examination paper:

1 On the day of your exam, the first thing that you should do is to
read the paper through carefully! Make sure that you familiarize
yourself with all of the questions asked, as well as the time
allowed for the paper [in this case, two (2) hours].

2 When answering a question, look at how many marks are being

awarded for the answer. This should indicate to you how many
facts the answer should contain.

3 Remember, time is precious! Don’t waste time by re-writing the

question from your exam paper in your answering book.

4 Make sure that you number your questions correctly and clearly
in your answering book.

5 Please write the number of the questions that you have

answered on the cover page of your answering book, for
example:

Question no.
1
2
4

DO NOT write the sub-questions for each main question on the

cover page.

6 Please write as legibly as possible!

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7 When you have to “Name” say for example three (3) facts, you
are allowed to make use of bullets, for example:

• The economic impact of tourism

• The social impact of tourism
• The environmental impact of tourism

8 When asked to “Briefly discuss/explain/describe”, you are

required to make use of full sentences in your answer. If the
question counts three (3) marks, don’t write three paragraphs!
Discuss the three correct facts briefly.

9 For the long questions in Section B it is very important that you

discuss what is asked in paragraph format and in as much detail
as possible. Avoid repeating yourself unnecessarily as this
wastes time. Make sure that you discuss the correct facts in a
correct manner in order to achieve the highest mark possible!

10 More hints and tips will be given in Tutorial Letter 201 which you
will receive later in the semester.

8 EXAMPLE OF AN EXAMINATION PAPER

The following is an example of how the examination paper can look in

terms of the format. It is not the examination paper that you will
receive in the forthcoming examination but some of the questions may
be repeated in the exam.
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SECTION A

Answer all the questions. (This section consists of a number of

MCQs carrying a total of 20 marks. Try to complete this section within
30 minutes.)

SECTION B

Answer any two of the three (3) questions in this section. (Spend
approximately 40 minutes on each question.) Total of 50 marks.

Question 2

“Within each organization, such as a manufacturer, the supply chain

includes all functions involved in receiving and filling a customer
request. These functions include, but are not limited to, new product
development, marketing,operations, distribution, finance and customer
service.”

With this statement in mind, explain the objective of a supply chain

and the macro processes of a supply chain.
 26

Question 3

Discuss the different design options for a transportation network, by

also illustrating with diagrams, and explain the trade-offs that can be
made to minimize total cost, while still providing the desired level of
responsiveness.

Question 4

Explain the importance of accurate cost data and the four control
systems that Stock and Lambert propose to affect logistics control.

9 PREPARING FOR THE EXAMINATION

Having worked through and studied your study material and done all
the activities and self-evaluation questions you should be able to
answer an examination paper. As a final preparation for the
examination you should now try to answer the specimen examination
paper in two hours.

In the examination you should take approximately 10 minutes to read

carefully through the paper and to select the questions you wish to do.
Then plan your time so that you spend approximately 30 minutes on
section A and 40 minutes on each question in section B.

NOTE : The specimen examination paper is merely an example

to give you an idea of what an examination paper looks
like and to serve as an exercise. It is not the paper that
you will receive in the examination.
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10 CONCLUDING REMARKS

We trust that you will enjoy your studies in Logistics Strategy

(TRL309D) and that you will be able to use your knowledge to make a
positive contribution towards applying the theory in practice. Please
contact us should you experience any problems with your studies. The
lecturers at the Department of Transport Economics, Logistics and
Tourism are always at your service.

Here’s wishing you a successful semester.

Yours sincerely,

Mr JL Theron
DEPARTMENT TRANSPORT ECONOMICS, LOGISTICS AND TOURISM