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2025 S1 MGF5961 Take-home Test, Due Date: Thursday, 12 June 2025, 9:30 AM

Submission Instructions:

1. You’re required to submit a PDF or Word version of your answers via Moodle. When you answer these three questions, please copy the questions as well. Any similarity flagged by Turnitin in relation to the questions will not affect your grade.

2. There is no minimum requirement for the number of examples; however, you should include relevant examples where appropriate to make your analysis convincing and well-supported. References are necessary for these examples.

3. Work submitted for assessment MUST be accompanied by a completed and signed assessment cover sheet, which can be downloaded on the Moodle.

4. Late submissions may attract a marking penalty of 40 percent of the maximum mark.

5. Similarity will be checked through Turnitin. Any student caught cheating will be reported to the Faculty and dealt with through the University’s Policy on academic integrity (cheating and collusion). If they are found to have plagiarized a penalty will be imposed including but not limited to a result of ZERO.

Questions (40 marks)

1. (Transportation and network design) As a logistics manager of a fast fashion company, you are responsible for designing a transportation strategy that is both efficient and responsive, ensuring timely and cost-effective delivery of products from manufacturers to end customers.

Discuss the relative advantages and limitations of transportation modes and networks in the context of fast fashion. Your answer should examine different transportation modes and transportation networks. Your answer should draw on concrete examples of fast fashion companies that have adopted similar transportation modes and strategies to support your analysis. (maximum 800 words, 15 points)

2. (Inventory management and sustainable operations) Push and Pull strategies represent two contrasting supply chain models, each with significant implications for operational performance, financial outcomes, and environmental sustainability.

Critically evaluate how Push and Pull supply chain models influence key dimensions of supply chain management—specifically profit margins, risk exposure, and sustainability. Additionally, assess whether a hybrid model presents a viable pathway to balancing these dimensions in an increas-ingly dynamic and environmentally conscious global market. Support your discussion with relevant real-world examples. (maximum 800 words, 15 points)

3. (Inventory Management) Consider the following EOQ problem faced by a retailer sourcing a product with quantity discounts and a known defective rate. The key EOQ information is as follows:

• Annual demand: 10,000 units

• Ordering setup cost: $300 per order

• Annual holding cost: $0.4 per unit (based on useable units)

• Insurance rate is 0%.

• Price discount scheme:

Order Quantity Price per unit

0 – 3,000 units             $4.00

3,001 – 6,000 units       $3.90

> 6,000 units               $3.80

In addition, we know that 2% of the items received from your supplier are defective and cannot be sold. Defective units incur a disposal cost of $0.2 per unit immediately upon receipt and are not returned to the supplier. What is the optimal order quantity and the lowest annual total cost? Detailed solution steps are needed. (10 points)