SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply inventory replenishment and distribution systems 
SAQA US ID UNIT STANDARD TITLE
377363  Apply inventory replenishment and distribution systems 
ORIGINATOR
SGB Manufacturing and Assembly Processes 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 06 - Manufacturing, Engineering and Technology Manufacturing and Assembly 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is required by people working in the manufacturing environment and who need to understand the concepts, review methodologies and lot sizing techniques.

People credited with this unit standard are able to:
  • Determine the re-order point.
  • Explain the concept Economic Order Quantity (EOQ).
  • Discuss and apply various order review methodologies.
  • Demonstrate knowledge and application of a number of lot sizing techniques.
  • Explain distribution management.
  • Describe and plan carriers operations.
  • Discuss factors that determine the location of a facility.
  • Explain and apply Distribution Requirements Planning (DRP).
  • Discuss and apply a number of distribution ordering models. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Mathematical Literacy at NQF Level 3.
  • Communication at NQF Level 3. 

  • UNIT STANDARD RANGE 
    Specific range statements are provided in the body of the unit standard where they apply to particular outcomes or assessments. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Determine the re-order point. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The importance of effectively planning the levels of inventory at various points in the supply chain is explained according to procedures. 

    ASSESSMENT CRITERION 2 
    The reorder point model is discussed according to procedures. 

    ASSESSMENT CRITERION 3 
    The reorder point for an inventory item is determined with and without the provision of safety stock using raw data. 

    ASSESSMENT CRITERION 4 
    The relationship between the reorder cycle and the associated risks of a stockout occurring is analysed in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 5 
    The role of safety stock in the reorder point model is explained in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 6 
    The relationship between ordering costs and carrying costs is analysed using a diagram. 

    SPECIFIC OUTCOME 2 
    Explain the concept Economic Order Quantity (EOQ) as used in the workplace. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The EOQ model is defined in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 2 
    The features of the economic order quantity rule are described in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 3 
    The economic order point is determined according to the relevant procedures. 
    ASSESSMENT CRITERION RANGE 
    Procedure: Trial-and-error method, the EOQ formula and raw data.
     

    ASSESSMENT CRITERION 4 
    The practical constraints associated with using the economic order model are discussed to determine how much to order at one time. 

    ASSESSMENT CRITERION 5 
    The role of order constraints and order modifiers in determining order quantities is explained according to their uses. 

    ASSESSMENT CRITERION 6 
    The effect of quantity discounts on the order quantity decision rule is explained using examples. 

    ASSESSMENT CRITERION 7 
    An economic order quantity calculation is complete using examples. 

    SPECIFIC OUTCOME 3 
    Discuss and apply various order review methodologies. 
    OUTCOME RANGE 
    Methodologies include materials requirement planning, reorder point, time-phased-order point, periodic review, visual review, two bin system and kanban systems. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The various methodologies are compared and applied taking given demand situations into consideration. 

    ASSESSMENT CRITERION 2 
    Various components of the reorder point inventory replenishment methodology are explained using a diagram. 

    ASSESSMENT CRITERION 3 
    The planned order releases are calculated using time-phased reorder point methodology. 

    ASSESSMENT CRITERION 4 
    The reorder point is compared to periodic review methodologies for inventory replenishment in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 5 
    The use of the two-bin system as a method to replenish inventory is explained according to procedures. 

    ASSESSMENT CRITERION 6 
    The use of kanbans is explained and applied to maintain a constant amount of inventory in the supply chain. 

    SPECIFIC OUTCOME 4 
    Demonstrate knowledge and application of a number of lot sizing techniques. 
    OUTCOME RANGE 
    Lot sizing techniques: Discrete techniques and demand-based techniques. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The differences between discrete ordering techniques and demand-based ordering techniques are analysed according to their uses. 

    ASSESSMENT CRITERION 2 
    The rolling-schedule concept is described and applied using examples. 

    ASSESSMENT CRITERION 3 
    A series of iterations is performed using employing different techniques and raw data. 
    ASSESSMENT CRITERION RANGE 
    Techniques include the lot-for-lot ordering technique, the period order quantity technique, the fixed order quantity technique and the economic order quantity technique.
     

    ASSESSMENT CRITERION 4 
    The effect of ordering an item is compared using a number of different lot-sizing techniques. 

    SPECIFIC OUTCOME 5 
    Explain distribution management. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The elements and objectives of distribution management are described in line with Operations Management Body of Knowledge (OMBOK). 
    ASSESSMENT CRITERION RANGE 
    The distribution network: Storage and inventory control; order processing; distribution planning; order picking; and shipping.
     

    ASSESSMENT CRITERION 2 
    The importance of the role inventory plays in the supply chain process is explained using examples of uncertainty. 

    ASSESSMENT CRITERION 3 
    The activities of a physical distribution system are discussed according to procedures. 
    ASSESSMENT CRITERION RANGE 
    Six interrelated activities are: Transportation; distribution inventory; warehousing; materialshandling; protective packaging and order processing.
     

    ASSESSMENT CRITERION 4 
    The factors to be taken into account when determining the location for a distribution centre are described using given examples. 

    ASSESSMENT CRITERION 5 
    The concept of vertical integration in the supply chain is outlined using examples. 

    SPECIFIC OUTCOME 6 
    Describe and plan carriers operations. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Various modes of transport for moving products from one geographical location to another are discussed using given examples. 
    ASSESSMENT CRITERION RANGE 
    Modes of transport: Road; rail; air and water.
     

    ASSESSMENT CRITERION 2 
    Freight management is described using carrier categories as examples. 
    ASSESSMENT CRITERION RANGE 
    Carrier categories: For hire carriers and not for hire carriers.
     

    ASSESSMENT CRITERION 3 
    The cost elements in a transportation system are described and calculated using given data. 
    ASSESSMENT CRITERION RANGE 
    Costs: Fixed costs and variable costs.
     

    ASSESSMENT CRITERION 4 
    The cost of shipping full truck loads and less-than truck loads over a given route is compared using given examples. 

    ASSESSMENT CRITERION 5 
    The role of containerisation in the logistics channel is explained in line with Operations Management Body of Knowledge (OMBOK). 

    ASSESSMENT CRITERION 6 
    Various types of containers are compared using examples. 
    ASSESSMENT CRITERION RANGE 
    Types of containers: Dry vans; open tops; flat racks; high cubes and specials.
     

    SPECIFIC OUTCOME 7 
    Discuss and apply factors that determine the location of a facility. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The difference between physical and cost factors, related to the physical location decision, is analysed and calculated using given data. 

    ASSESSMENT CRITERION 2 
    A number of different channel types and structures for moving finished goods through the logistics channels are described using given examples. 

    ASSESSMENT CRITERION 3 
    Factors affecting the location decision are discussed in line with requirements. 
    ASSESSMENT CRITERION RANGE 
    Location includes but not limited to: Country location, and region/community location.
     

    ASSESSMENT CRITERION 4 
    Factors affecting the final choice of a site as a location for a distribution centre or other facility are described in line with procedures. 

    SPECIFIC OUTCOME 8 
    Explain and apply distribution requirements planning (DRP). 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role of distribution requirements planning in the supply chain is discussed using given examples. 

    ASSESSMENT CRITERION 2 
    Material requirements planning is compared to distribution requirements planning in terms of their similarities and differences. 

    ASSESSMENT CRITERION 3 
    The prerequisites for a distribution requirements system are explained according to procedures. 

    ASSESSMENT CRITERION 4 
    A centralised distribution centre and a decentralised distribution centre are compared in terms of their advantages and disadvantages. 

    ASSESSMENT CRITERION 5 
    The interface of DRP with other logistics system modules is described according to procedures using a diagram. 

    ASSESSMENT CRITERION 6 
    The differences between the services offered by a third-party logistics provider and a fourth-party logistics provider are analysed according to their uses. 

    ASSESSMENT CRITERION 7 
    Basic distribution requirements planning is conducted using given data. 

    SPECIFIC OUTCOME 9 
    Discuss and apply a number of distribution ordering models. 
    OUTCOME RANGE 
    Alternative distribution models are: the base stock system; order point system; periodic review system and double order point system. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The differences between various distribution replenishment systems are explained according to their uses. 

    ASSESSMENT CRITERION 2 
    The planned order release dates are determined using different models. 
    ASSESSMENT CRITERION RANGE 
    Models: The reorder point model, the periodic review model and the double-reorder point model.
     

    ASSESSMENT CRITERION 3 
    The process of collecting demands from outlying depots back onto a central warehouse point is explained according to procedures. 

    ASSESSMENT CRITERION 4 
    Basic DRP calculation is performed using given data. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard must be accredited as a provider through the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • The re-order point.
  • Economic Order Quantity (EOQ).
  • Order review methodologies.
  • Lot sizing techniques.
  • Distribution management.
  • Carriers operations.
  • Factors that determine the location of a facility.
  • Distribution requirements planning (DRP).
  • Distribution ordering models. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems and make decisions using critical and creative thinking in performing reorder cycle and considering the associated risks of a stockout. 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as members of a team and know one's responsibility in the work environment to make the workplace more productive by planning the levels of inventory at various points in the supply chain. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organize and critically evaluate information by considering a number of distribution ordering models. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicating effectively using visual, mathematical and/or language skills in the modes of oral and/or written presentations while performing inventory replenishment. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57712   Further Education and Training Certificate: Generic Management  Level 4  NQF Level 04  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Career Pathing Solutions (Pty) Ltd (KRUGERSDORP) (TP) 
    2. OPTIMUM LEARNING TECHNOLOGIES PTY LTD 
    3. Procurement & Supply Management College cc (ROBERTSHAM) (TP) 
    4. Wide Horizon Advanced Training (PORT ELIZABETH) (TP) 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.