Reference no: EM133898269

Question

Grand View Research published the following market insights in 2022: "[The] global rice market size was valued at USD 287.45 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 2.2% from 2022 to 2028. Rice is the staple food of more than half of the world's population; Asia Pacific is the largest consumer of the product, which has led to significant market growth. Moreover, continuous developments in rice mill machinery globally and attractive packaging increases the product demand in emerging economies." (Grand View Research, 2022). Starch N Some is a small-scale rice packaging company, importing its rice from India and packaging it in Johannesburg, Gauteng. They have a variety of grades of rice packs and they pack them in different sizes. Their target market is both consumers and businesses, based in Gauteng province for now. Their marketing manager, after reading the above report, realised that even though almost marginal, there is potential market growth, which they could strategically capitalise on, but only if they get their supply chain to operate effectively and with greater efficiency.

1. Starch N Some is considering implementing an inventory management system, but they first want to interrogate the principles that underpin the system. Analyse how accurate demand forecasting and keeping accurate records of inventory will help Starch N Some to run the most effective inventory management system.

2. Starch N Some have put aside finances to acquire a warehouse that is custom designed for their operation. Examine how nature, quantity and size of the product and purpose of the warehouse will influence Starch N Some's warehouse operation.