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Business Logistics and Management PagePageFACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY Department of Civil Engineering ADV.DIP: LOGISTICS AND TRANSPORTATION MANAGEMENT LEARNING GUIDE BLM401 BUSINESS LOGISTICS AND MANAGEMENT

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Study Guide BLM401 Business Logistics and Management

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FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

Department of Civil Engineering

ADV.DIP: LOGISTICS AND

TRANSPORTATION MANAGEMENT

LEARNING GUIDE

BLM401 BUSINESS LOGISTICS AND

MANAGEMENT

m

Study Guide BLM401 Business Logistics and Management

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TABLE OF CONTENTS

COURSE DETAILS 2

LEARNING ASSUMED TO BE IN PLACE 2

LEARNING OUTCOMES FOR THE COURSE 2

BRIEF DESCRIPTION OF CONTENT 4

CRITICAL OUTCOMES 4

LECTURES 5

ASSESSMENT CRITERIA 5

ASSESSMENT METHODS 6

IMPORTANT NOTICE 7

STATEMENT ON ACADEMIC INTEGRITY 9

PRESCRIBED TEXTBOOKS (COMPULSORY READING LIST) 9

IMPORTANT DATES AND ACTIVITIES 10

SYLLABUS 11

LEARNING UNIT 1: Overview of the Supply Chain Management Process 11

LEARNING UNIT 2: Transportation and Assignment Problems 14

LEARNING UNIT 3: Introduction to Business Logistics 17

LEARNING UNIT 4: Competitive Advantage Created by Logistics 19

LEARNING UNIT 5: Logistics and Supply Chain Strategy Planning 19

LEARNING UNIT 6: Forecasting Supply Chain Requirements 20

LEARNING UNIT 7: Procurement Management 21

LEARNING UNIT 8: Inventory Management 22

LEARNING UNIT 9: The Design of Storage and Handling Facilities

LEARNING UNIT 10: The Transport System

LEARNING UNIT 11: Controlling Logistics Performance

WORK PLAN 23

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COURSE DETAILS

Course Name Business Logistics and Management

Course Code BLM401

NQF Level 7

Programme Advanced Diploma: Logistics and Transportation Management

Credits 24

Notional Hours 240 Hours

Contact Hours 3.33 Hours per week

CLASS ATTENDANCE IS COMPULSORY

LEARNING ASSUMED TO BE IN PLACE

A. A formal qualification at NQF level 6 or RPL

B. Computer literacy – ability to:

1. Use Microsoft Word and Excel

2. Search for information on the internet

C. Basic numeric literacy skills in:

1. Statistics; and

2. Mathematics

LEARNING OUTCOMES FOR THE COURSE

After completing this course learners will be able to:

Explain the basic concepts underlying Business Logistics and Management

Contribute effectively in a Business Logistics and Management exercise within a business context

Support the implementation of a Business Logistics and Management exercise

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CLASS ATTENDANCE IS COMPULSORY

CLASS ATTENDANCE IS

COMPULSORY

-------------------------------------

---

CLASS ATTENDANCE

REGISTER WILL BE KEPT

-------------------------------------

---

IT IS EVERY STUDENT’S

RESPONSIBILITY TO SIGN THE

CLASS ATTENDANCE REGISTER

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BRIEF DESCRIPTION OF CONTENT

The module covers current issues in business logistics and focuses on co-ordinating logistics

across supply chains. Logistics form a core part of operations management which includes

the deployment and management of people and information. Therefore, the module also

covers issues surrounding people and information insofar as they relate to logistics

management. Mathematical tools are employed to bring precision to decision-making in this

respect. The techniques we will study in this course have been applied successfully to an

increasingly wide variety of complex problems in business, government, healthcare,

education, and many other areas. Many such successful uses are discussed throughout this

course.

It is not enough, though, just to know the mathematics of how a particular quantitative

technique works in Business Logistics and Management. You must also be familiar with the

limitations, assumptions, and specific applicability of the technique. The successful use of

quantitative techniques usually results in a solution that is timely, accurate, flexible,

economical, reliable and easy to understand and use.

CRITICAL OUTCOMES

After completing this course learners will be able to:

Demonstrate integrated knowledge to manage logistical activities with a supply chain management perspective.

Apply basic qualitative and quantitative analysis techniques in logistic management processes.

Understand the importance of logistic systems in value creation.

Understand the need for quality supplier-customer relationship.

Make a critical evaluation of what logistic management techniques could be used in the business and when to call in a specialist and how the business could benefit from a quantitative analysis application.

LECTURES

Lectures will not refer exclusively to the textbook material. Rather, they may cover similar concepts and approaches to logistics management using examples from the broader Operations Management/Operational Research literature. It is assumed that students have read the assigned readings before class therefore learners should always come to class prepared. Some examination questions will be drawn from the textbooks that will not be discussed at lectures.

In order to attain success in the subject, the learner’s own contribution is of vital importance. It is important that s/he realizes that it is their responsibility to prepare for classes and to initiate class discussions.

Success is only possible if learners approach their studies with commitment and diligence and should they not understand any part of the work, they should not be afraid to ask the facilitator for help. Learners should always bring the prescribed textbook and learning guide and workbook to class.

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It is important learners attend lectures at all times. It is during this time that:

The facilitator will highlight the key aspects of the work

Learner can ask relevant questions regarding the work.

Learner can gain practical knowledge through the hands-on experience of the facilitator.

It is the responsibility of the learner to obtain relevant information from fellow learners

about the work that was done in class should the learner fail to attend class.

The learner is requested to be punctual to class. Cell phones must be switched off at all times.

If any learner has particular issues regarding the lecturer or lectures, s/he should please discuss them with the lecturer in question first before bringing them to the Programme Head.

The student can leave a message with the departmental secretary, if the facilitator cannot be reached immediately. Visits/telephone calls to the private home of the facilitator will NOT be tolerated. Consulting hours will be announced in class.

The facilitator will not repeat lectures during consultation hours or lend notes or transparencies/slides to learners.

ASSESSMENT CRITERIA

Students display knowledge and understanding of basic quantitative and qualitative analysis techniques and demonstrate the capability to effectively contribute in a logistic management exercise in a business context.

ASSESSMENT METHODS

Assessment will be conducted according to any assessment method as approved by the department and the obtained marks may form part of the final mark. Assessment results will be made up of tests, assignments and practical. Evaluation criteria for assignments will be given to the learner in class

The learner is required to study all the work as set out in the learning guide as well as additional material.

i. Tests

Preliminary test dates and venues have been stated in the learning guide, but they are subject to change. Please pay attention in class to all the information that will be provided with regard to changes.

Should the learner miss a test it is his/her responsibility to inform the facilitator and bring a valid reason in writing within one week of writing the test.

The learner should ensure that the facilitator receives the valid reason on time. The facilitator will then advise the learner on what course of action to take.

No excuse will be accepted for a class evaluation that was missed due to poor class attendance unless the learner can present a valid written reason within one week.

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ii. Assignments

Assignments must be submitted on time, on the due date, at the arranged venue, unless the facilitator makes other arrangements.

The facilitator accepts no responsibility for lost assignments. The learner must always keep a copy of every assignment that is submitted.

iii. Class activities and homework

Class activities will be done during class times and the facilitator may take in the activity or part of the activity at the end of the session, for marking.

Homework will be given to students and the facilitator may take in the homework at the beginning of the class session.

The above is done to monitor the learner’s progress.

iv. Assessment Guidelines

Evaluation tests and assignments will be set on a regular basis. Most assignments are done in Group Context: it is vital that you also focus on the assignments. Past experience has shown that well functioning groups achieve all round success, as they encourage and support the individual.

v. Assessment Terminology Assessment will take two forms (a) Formative and (b) Summative.

Formative assessment

Formative assessment will be achieved as follows:

Regular graded group assignments

Class discussion and feedback on particular relevant topics

Case studies

Summative assessment

Quarterly tests, covering the work done to date – see the work schedule for test dates and requirements

Semester evaluation covering all the work for the semester.

A diagram of how to calculate your mark is as follows:

Semester 1

Tests Group

Assignments

Practical/Individual

Assignments

Examinations

Approx

50%

Approx

20%

Approx

30%

40% 60%

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Note 1: The percentage division between Tests and Assignments and Practical, may differ somewhat from the above, taking into cognisance some input/feedback from the learners, and interaction with the facilitator. A course of this nature should also be dynamic in its outcomes, presentation and business relevance

Note 2: A learner must achieve a minimum of 50% in order to successfully complete the course.

IMPORTANT NOTICE

As the Advanced Diploma in Logistics and Transport Management programme is a fourth

year university level course students will be expected to produce work that reflects

academic maturity. Therefore the following should be noted well:

1. Language usage, logic, academic maturity of arguments, insight, and technical outlay of work all count towards the mark you get.

2. It is a student’s responsibility to make assignments, tests and examinations scripts

readable. Hand written assignments/projects will not be accepted.

3. Assignments not complying with criteria on assignment layouts will be

penalized up to 10 marks. (The criteria will be given to the learner during the

course of the year).

4. Forged assignments will receive will receive zero mark. In the same vein plagiarized

work will be penalized.

5. Faxed assignments will not be accepted.

6. Group work means just that. For that reason a minimum of three and a maximum

of five makes a group. No deviations will be accepted.

7. Distance, work commitment or any other reason is unacceptable.

8. There is a clear institutional regulation regarding absence from class, examinations,

and tests. No deviations from the established regulations will be granted.

9. Absence from class or test due to work commitment is undertaken at your own peril

and no arrangements will be entertained because of it.

10. Application for extension must be done in writing before the assignments due

date.

11. The application must be accompanied by documentation of illness or other

exceptional circumstances.

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12. Granted extensions are only valid once the facilitator confirms it and the

learner has received notification thereof.

13. Make sure you acquaint yourself with the necessary University regulations to avoid

inconveniencing yourself.

14. The Advanced Diploma in Logistics and Transportation Management programme at

the CUT is a part-time contact programme and not distance learning programme (or

correspondence course). Attendance therefore is compulsory.

15. It is your responsibility to ensure that your employer is aware of your schedules.

16. Late submission means no submission. You will be provided with assignment and

test schedules. You must make your employers adhere to this and not the University

adhering to your work schedule!

17. Due to the large class size, tests and assignments (both individual and group) may be

entirely multiple-choice.

STATEMENT ON ACADEMIC INTEGRITY

Academic dishonesty is a serious offence and any violation will not be tolerated in this

course. The following examples are not exhaustive but describe CUT’s policies for what

constitutes academic dishonesty and penalties thereof. It is your responsibility to know what

constitutes a violation of academic integrity. Academic dishonesty as far as CUT is concerned

includes, but is not limited to: signing an attendance sheet using somebody else’s name,

allowing somebody to sign an attendance sheet in your name, cheating in examinations,

plagiarizing, handing in papers that were downloaded from the internet, fabricating

information or citations, facilitating acts of academic dishonesty by others, etc. The usual

punishment for academic dishonesty ranges from deduction of marks to total expulsion from

CUT.

PRESCRIBED TEXTBOOKS

1. Business Logistics Management: A Value Chain Perspective, 4th Edition by Pienaar

W.J. and Vogt J.J.; ISBN 9780199057139, Oxford University Press Southern Africa

2. Quantitative Analysis for Management; 12th Edition: Render, B; Stair, M.R.; Hanna,

M.E. - ISBN 9780137129904 Prentice Hall

Additional Textbooks: Theory Quantitative Methods for Business; 12th Edition: Anderson DR, Sweeney DJ, Williams TA,

Camm JD & Martin K – ISBN 9781133584469, South-Western Cengage Learning

Operations Management; 2nd Edition: Kruger, D; Ramphal, R – ISBN 9780195984474.

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WHILE THE UTMOST CARE WAS TAKEN WHILE PLANNING AND COMPILING THIS LEARNING

GUIDE, IT REMAINS SUBJECT TO CHANGE

IMPORTANT DATES AND ACTIVITIES

Due dates Assessment Type Form of

Assessment

Mark Allocation

21 – 24/03 Test 1 Class Test 25% of

course

mark

10% of

final

mark

18/04 Test 2 Class Test 25% of

course

mark

10% of

final

mark

29/08 Test 3 Class Test 25% of

course

mark

10% of

final

mark

26/09 Test 4 Class Test 25% of

course

mark

10% of

final

mark

22/05 – 04/06 1st Semester Exam A formal 3-hour

examination

100% of

exam mark

60% of

final

mark

06/06 – 17/06 Sickness, Special and

Supplementary Exams

A formal 3-hour

examination

100% of

exam mark

60% of

final

mark

As and when

necessary

Group Assignments Class and home

work

24/03/2016 First quarter test marks entered into ITS system by faculties

13/05/2016 Second quarter test marks entered into ITS system by

faculties

PLEASE REFER TO TIME TABLE FOR LECTURE VENUES, TIMES, AND DAYS!!

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SYLLABUS

TOPIC

EXPECTED OUTCOMES HOW DO YOU KNOW IF YOU

HAVE ACHIEVED THE EXPECTED

OUTCOME?

Practical

Application

Learn

ing U

nit

1

Ove

rvie

w o

f th

e S

up

ply

Ch

ain

Man

age

me

nt

Pro

cess

To understand: 1. Types of chain 2. Various elements of supply chain

management 3. The need to manage supply chains 4. Performance management of

supply chains 5. Customer needs in supply chain

management

The ability to: 1. Explain what a supply chain

is. 2. Describe the role and

importance of the supply chain.

3. Understand what the management of the supply chain entails.

4. Understand customer expectations in the SCM process

Reference: Operations Management, 2

nd Edition by

Kruger D & Ramphal R – Oxford University of Press

Individual Practice

Pages 183-184

See end of Chapter

7 of Kruger &

Ramphal (2009)

Individual

Assessment

None

Group Assignment:

Case study: To be

confirmed in class

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CLASS ATTENDANCE IS

COMPULSORY

-------------------------------------

---

CLASS ATTENDANCE

REGISTER WILL BE KEPT

-------------------------------------

---

IT IS EVERY STUDENT’S

RESPONSIBILITY TO SIGN THE

CLASS ATTENDANCE REGISTER

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TOPIC

EXPECTED OUT-COMES HOW DO YOU KNOW IF YOU

HAVE ACHIEVED THE EXPECTED

OUTCOME?

Practical Application

Learn

ing U

nit

2

Tran

spo

rtat

ion

an

d A

ssig

nm

en

t P

rob

lem

s

To have an understanding of the steps involved in using assignment and transportation models to solve Linear Programming (LP) problems.

Be able to describe: 1. Structure special LP problems

using the transportation and assignment models

2. Use the northwest corner, VAM, MODI, and stepping-stone methods

3. Solve facility location and other application problems with transportation models

Individual Practice

P474

No’ 11 -14

Individual Assessment

None

Group Assignment:

To be decided

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ing U

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3

Intr

od

uct

ion

to

Bu

sin

ess

Lo

gist

ics

To understand what business

logistics entails and distinguishes it

from supply chain management.

1. Describe why there is need for logistics as a business system

2. Explain the need for logistics management as a teaching discipline

3. Describe the evolution of the concept of logistics

4. Explain how logistics emerged in the context of business

5. Describe the concepts of supply chain management, logistics management, the systems – or total-cost approach – and systems analysis

6. Understand the difference between a logistics approach and a logistics system

7. Describe what is meant by strategic, tactical and operational logistics management

8. Give a brief account of the various activities of business logistics

Individual Practice

P17 of Pienaar and

Vogt (2014)

End of Chapter

Questions no. 1-8

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ing U

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4

Co

mp

eti

tive

Ad

van

tage

Cre

ate

d b

y Lo

gist

ics

Gain an understanding of

how to logistics can be a

tool for wealth creation in

an organisation.

1. Identify the ultimate goal and immediate objectives of the business logistics process

2. Describe how value is created by logistics

3. Understand the concepts of customer service, and consumer and user satisfaction

4. Describe the most pertinent logistics performance determinants in the area of customer services

5. Outline what competitive advantage means and how it can be achieved

6. Describe logistics can help to create wealth within a business

Practice questions

on pp. 32- 33 of

Pienaar & Vogt

(2014).

TOPIC

EXPECTED OUT-COMES HOW DO YOU KNOW IF YOU HAVE

ACHIEVED THE EXPECTED OUTCOME?

Practical

Application

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ing U

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5

Logi

stic

s an

d S

up

ply

Ch

ain

Str

ate

gy P

lan

nin

g

Understand the steps

involved in logistics and

supply chain strategy

planning

1. Understand what strategy means and how it applies to an organization

2. Understand the importance and nature of strategic management

3. Understand the cascading levels of strategies in an organization

4. Understand how a logistics and supply chain strategy is derived from a business strategy

5. Describe the major elements and processes involved in developing a logistics and supply chain strategy

6. Identify logistics and supply chain strategic focus areas

7. Know what the content of a supply chain strategy document should comprise and how to summarise it in a strategy map

8. Understand the importance of correct strategy implementation

9. Know how to use scorecard and action plans to drive implementation.

See end-of-chapter

exercises on pp.

52-54 of Pienaar &

Vogt (2014).

Learn

ing U

nit

6

Fore

cast

ing

Understand how to employ

various models and tools to

predict the outcomes of

decisions.

1. Understand and know when to use various families of forecasting models.

2. Compare moving averages, exponential smoothing, and other time-series models.

3. Seasonally adjust data. 4. Understand Delphi and other qualitative

decision-making approaches. 5. Compute a variety of error measures.

Students should

practise questions

on pp. 204 – 210 of

Render et al (2012)

and pp. 134-137 of

Pienaar & Vogt

(2014).

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ing U

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7

Pro

cu

rem

en

t M

an

ag

em

en

t

Understand procurement as

a holistic process compared

to purchasing.

1. Explain the difference between purchasing in the narrow sense and procurement as a holistic process to support the operations of a business

2. Define and describe the objectives of procurement management

3. Discuss the strategic, tactical and operational roles of procurement in an inter-organisational and intra-organisational sense

4. Describe the five principal steps of the procurement process

5. Discuss the nature and classification of goods and services that businesses procure

6. Give an account of the dimensions of the quality of physical products service delivery

7. Discuss the procurement-related activities that can enhance supply chain success

8. Outline the methods used to curb procurement expenditure

9. Give an account of electronic procurement tools and supply a classification of electronic business-to-business marketplaces.

Practice questions on pp. 215- 216 of Pienaar & Vogt (2014).

Learn

ing U

nit

8

Inven

tory

Man

ag

em

en

t

Appreciate what inventory

management entails in

order to be able to

effectively plan, organise

and control inventory

systems

1. Provide reasons why it is necessary to hold inventory

2. Differentiate between the various types of inventory

3. Explain some basic inventory concepts 4. Identify inventory-ordering costs and

inventory-carrying costs 5. Determine a suitable carrying-cost

percentage 6. Set optimum inventory levels 7. Describe contemporary inventory

replenishment systems 8. Perform effective inventory control.

Practice questions on pp. 252- 255 of Pienaar & Vogt (2014).

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ing U

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9

The

De

sign

of

Sto

rage

an

d H

and

ling

Faci

litie

s Appreciate the important

role that storage and

handling facilities play in

logistics management and

understand what is involved

in designing such facilities.

1. Explain why it may become necessary to amend the design of an existing logistics facility

2. Define the purpose of the facility and explain why understanding the initial requirements of the facility is important

3. Realise the importance of planning for growth

4. Realise the importance of operations and warehouse management systems in facility design

5. Understand the factors affecting the size of a facility

6. Explain how to use vertical space (height) to achieve cost-effective storage

Practice questions on pp. 271- 272 of Pienaar & Vogt (2014)

Learn

ing U

nit

10

The

Tra

nsp

ort

Sys

tem

Understand the role of

transport system and

logistics management.

1. Explain the role of transport in the business logistics process

2. Discuss the service characteristics of the basic modes of transport

3. Identify the various components of the transport system and discuss the role(s) of each component

4. Discuss the characteristics of goods, and explain the way in which each characteristic influences the transport cost of different groups of goods

5. Identify the four types of service providers and discuss the functions of each

6. Discuss the ways in which freight forwarders and freight transport brokers can add value in the logistics channel

7. Discuss the various reasons why governments involve themselves in transport

Practice questions on pp. 349- 350 of Pienaar & Vogt (2014)

Learn

ing U

nit

11

Co

ntr

olli

ng

Logi

stic

s P

erf

orm

ance

Understand the processes

involved in controlling

logistics performance

1. Understand why the planning and control of logistics activities is a cyclical process and not a once-off event

2. Identify the ISO standards that are of importance in logistics management

3. Differentiate between the different types of performance measures, and provide examples of performance measures that can be used to track processes in various functional areas of logistics

4. Describe the steps involved in a benchmarking exercise

5. Identify the supply chain operations reference involved in supply chains

6. Understand the important role that business intelligence can play in supply chain management

Practice questions on pp. 484- 485 of Pienaar & Vogt (2014)

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TOPIC

EXPECTED OUTCOMES HOW DO YOU KNOW IF YOU HAVE

ACHIEVED THE EXPECTED OUTCOME?

Practical

Application

Study Guide BLM401 Business Logistics and Management

SEMESTERS 1 & 2 – 2016

FACULTY OF MANAGEMENT SCIENCES

PLANNING - 2016

WEEK MONTH DATE DAYS REMARKS

1 Feb 01-05

5

days Introduction

2 Feb

08-

12

5

days Learning unit 1

3 FEB

15 -

19

5

days Learning unit 1

4 FEB

22 -

26

5

days Learning unit 2

5 FEB/MAR

29 -

04

5

days Learning unit 2

6 MAR

07 -

11

5

days Learning unit 2

Work plan for the year

Study Guide BLM401 Business Logistics and Management

7 MARCH

14 -

18

5

days Learning unit 2

8 MARCH

21 -

25

3

days CLASS TEST (Test 1)

30 March - 06 April: Holidays

9 APRIL

04 -

08

4

days Learning unit 3

10 APRIL

11 -

15

5

days Learning unit 3

11 APRIL

18 -

22

5

days CLASS TEST 2

12 APR/MAY

25 -

29

4

days Learning unit 4

13 MAY

02 -

06

4

days Learning unit 4

14 MAY

09 -

13

5

days Learning Unit 4

15 May

16 -

20

5

days REVISION

16 MAY/JUNE

22/05

04/06

3

weeks Main Exam

17 JUNE

06 -

17

2

weeks Sick/Special/Supplementary Exam

Study Guide BLM401 Business Logistics and Management

26 June - 17 July: Holidays

18 JULY

18 -

22

5

days Learning Unit 5

19 JULY

25 -

29

5

days Learning Unit 5

20 AUG

01 -

05

5

days Learning Unit 6

21 AUG

08 -

12

4

days

Tuesday 9 August: Women’s Day

Learning Unit 7

22 AUG

15 -

19

5

days Learning Unit 7

23 AUG

22 -

26

5

days Learning Unit 8

24 AUG/SEP

29 -

02

5

days CLASS TEST 3

25 SEP

05 -

09

5

days Learning Unit 9

26 SEP

12 -

16

5

days Learning Unit 10

27 SEP

19 -

23

5

days

Learning Unit 10

SAT. 24 SEPT: HERITAGE DAY

28 SEP

26 -

30

5

days CLASS TEST 4

Study Guide BLM401 Business Logistics and Management

3rd to 9th October: Third Term Recess

29 OCT

10 -

14

5

days Learning Unit 11

30 OCT

17 -

21

5

days REVISION

31 OCT/NOV 24

3

weeks MAIN EXAM (OCT 24 to NOV 12)

NOV

14 -

25

2

weeks

SICKNESS, SPECIAL, AND RE-

ASSESSMENT

DEC

05 -

09

5

days FOURTH QUARTER CONCLUDES