Exercise 1. Read the article 'AH tackles empty shelves'. The articles deal with the holding of stocks. The foodstuffs sector wants to keep the holding of stocks as close to the start of the logistical chain as possible. (20 Marks) AMSTERDAM - Albert Heijn wants its major suppliers to provide it with more information about the consignments it delivers to its distribution centres. Intensive consultation with so-called 'co-makers' is just one of the measures that have been taken to make sure the recent problem of empty shelves is resolved within five weeks. The supermarket chain has been plagued by logistical problems ever since the week of Queen's Day. 'A limited number of stores are not getting the ordered products delivered, which creates a situation in these stores that is not commensurate with our image," as a spokesperson put it. A number of suppliers, especially of potatoes, vegetables, and fruit, are unable to keep up with the rapid growth in turnover. The turnover in existing stores went up by 9% in the first quarter. This growth had not been expected. Furthermore, due to problems with computer systems, only 50 of the 80 Coca Cola products in the assortment actually got delivered to the stores. Finally, AH decided to switch to a new milk supplier in the difficult week of Ascension Day. The company recognises that it is partly responsible for the situation. There was insufficient focus on the total chain.' The reins have since been pulled a little tighter at the top level. The duty rosters in the distribution centres have been changed, and the company makes its logistical service providers keep 2% extra 'wheels' in reserve each day. More information about the deliveries should also ensure that the products that are needed the most are also the first to be unloaded Question 1 (10+5+5=20 Marks) a) In your own words explain why it is not advantageous (e.g., for AH) to hold large stocks. b) What is the biggest risk associated with keeping stock levels as low as possible? () AH wants to keep the holding of stocks as close to the start of the logistical chain as possible. Where does the logistical chain start? Exercise 2. Market and Logistics (30 Marks) You have to start by choosing 4 products that are essentially different from each other. To make the choice of products easier, you can choose one product from each of the following 4 groups. A. Non-durables 1: Foodstuffs: Ben & Jerry's, Mars Bar, or cheese 2: Cosmetics: Suntan lotion, Rituals, or nail varnish B. Durables 1: ICT sector: PlayStation, laptop, or TomTom 2: Automotive sector: Car, E-bike, or scooter