ASSIGNMENT 3 2025
DUE 24 APRIL 2025
SEMESTER 1 2025
, QUESTION 1
Use the study guide and the prescribed book for guidance in answering the
questions. ½ mark will be awarded for each discussion. A detailed discussion is
required, link theory with the case study whenanswering the questions below.
1.1 Discuss the Economic benefits of having a warehouse to South African
sugarcane farmers. Relate your discussion to the case study. 4 marks for theory,
4 marks for application
According to STUDY UNIT 7: Warehouse management, warehouses offer several
economic benefits that help reduce logistics costs and improve supply chain efficiency.
These benefits go beyond just storage, they play a key role in the flow of products,
especially in agricultural sectors like sugarcane farming. The main economic benefits
include:
Consolidation and Break-Bulk
Warehouses allow farmers to combine (consolidate) sugarcane from different sources
and transport it in bulk to mills, reducing transport costs. They also break down large
shipments into smaller units for easier delivery.
Sorting
Warehouses help sort sugarcane by quality, moisture level, and sugar content before it
reaches the mills, ensuring that only good-quality cane is processed.
Seasonal Storage
Sugarcane is a seasonal crop. Warehousing helps farmers store harvested cane
temporarily and release it to mills in a controlled manner, avoiding delays or overload at
the processing stage.
Reverse Logistics