Question

Differentiate between demand and demand management in logistics and supply chain management. (2 marks) Several factors contribute to the variability of demand in supply chains. Factors both within and outside the organisation can cause demand variability. Source: Waters, M. Benedict, E. Wiese, S. Barnard, L. Mandeng, G. Kuhn, S. Rose, C. Makiwa, T. Zeka, S. 2020. The Fundamentals of Logistics Management. First Edition. Westlake Business Park. Edge. 3.2 Explain the following undermentioned factors (3.2.1 – 3.2.4) that contribute to the variability of demand within an organisation. (13 marks) 3.2.1 Trade and Credit terms. (1 mark) 3.2.2 Complexity of the distribution network. (5 marks) 3.2.3 Lack of synchronisation between supply replenishment and demand. (5 marks) 3.2.4 Outdated information systems. (2 marks) Question 4: (4 Marks) Match the correct term in Column A with the correct/corresponding description in Column B. Column A Column B 4.1 Back orders. A. Steven is the operations manager at a wellknown restaurant (The Beldacchi) located in Bloubergstrand, Cape Town. The Beldacchi is planning a special event where they will need to cater for over 100 clients. Steven did not want to take any chances with such a big occasion hence he decided that its best that they hire Exact Staffing Solutions to fill the missing gaps – enough personnel to attend to the clients needs. 4.2 Overtime. B. Michael arrived late at the promotion event advertised by Outdoor Warehouse. Due to being late, most stock items have been sold out, specifically the wheelbarrows, which Michael was looking for. This has resulted in Michael having to wait for his order purchase. 4.3 Subcontracting. C. Joseph is your average joe, working from 9 – 5 as a blue-collar worker. Some days Joseph needs the additional monies to support his family of three. To gain some additional cash Joseph helps out at Debonairs Pizza delivery on an adhoc basis. Joseph does his best to provide for his family without overcompensating most of his time. 4.4 Employing part-time staff. D. Meagan works for Architect Designs, a company well known for not paying their workers. Nonetheless, Meagan needed the job and has been employed at Architect Designs for the past three months. Each day, Meagan has been working 2 hours overtime due to internal capacity constraints. Meagan decided to take her employer to the CCMA to address this concern, and also collect the money that is owed to her. Your answer should be set out as follows: 4.1 - … (1 mark) 4.2 - … (1 mark) 4.3 - … (1 mark) 4.4 - … (1 mark) For example: 4.5 – F

Answer 1

Demand refers to consumer purchasing behavior, while demand management focuses on forecasting and managing demand patterns in logistics. It involves strategies such as forecasting and inventory management.

Step-by-step explanation:

Demand refers to the quantity of a product or service that individuals are willing and able to purchase at various prices. It is influenced by factors such as price, income, consumer preferences, and advertising.

Demand management in logistics and supply chain management, on the other hand, focuses on forecasting and managing demand patterns to ensure that the right quantity of products is available at the right time and place. It involves strategies such as demand forecasting, inventory management, and order fulfillment.

For example, a company may use demand management techniques to anticipate fluctuations in customer demand and adjust production and inventory levels accordingly, minimizing stockouts and excess inventory.