TRL3706/201/2/2015

Tutorial Letter 201/2/2015

ROAD TRANSPORT

TRL3706

Semester module

Department of Transport Economics, Logistics and

Tourism
This tutorial letter contains important information
about your module.

Bar code
 CONTENTS

1. myUnisa

2. GENERAL INFORMATION

3. FEEDBACK ON ASSIGNMENTS

3.1 Feedback on compulsory assignment 01

3.2 Feedback on compulsory assignment 02

4. EXAMINATION INFORMATION

4.1 Examination admission

4.2 Examination period
4.3 Examination date
4.4 Previous examination papers
4.5 Format of the examination paper
4.6 Guidelines for the examination
4.7 Guidelines for answering an examination paper

2
 TRL3706/201

Dear Student

I hope that you are finding your studies interesting and informative! We are nearing the end of
the semester, and soon it will be time for the examination! Please read through this tutorial
letter carefully as it contains feedback on compulsory assignments 01 and 02 as well as
important guidelines for your examination.

You are welcome to contact me at the contact details below if you have any academic queries
or wish to make an appointment to see me. Please note that the Department of Transport
Economics, Logistics and Tourism moved to a new building in Hazelwood (Cnr of Deli and
Pinaster).

My contact details are:

Tel:(012) 433 4718
E-mail: Dsantjm@unisa.ac.za

If you are not yet a member of Unisa’s online learning community, please register to become a
member of myUnisa as soon as possible! I use this website to communicate important
announcements during the semester. myUnisa will give you access to all the online study
material for the module. Remember that you can use myUnisa’s discussion forum to ask me
any questions relating to the content of this module that you do not fully understand. It also
allows you to discuss difficult topics with your fellow students.

I hope that you are enjoying your studies and I wish you all the best in your preparation for the
examination.

Kind regards,

Mrs Judite dos Santos Rocha

LECTURER: Road Transport

3
 1. myUnisa

What is myUnisa?

myUnisa is a secure website for registered Unisa students, which will give you direct access to
important information, such as course information, and will allow you to update your personal
information on the Unisa student system. You will also be able to join online discussion forums,
submit your assignments and access a number of other resources.

How do I become a myUnisa user?

After receiving confirmation from the university that you are a registered Unisa student, you
must do the following to become part of this innovative learning community:

• Claim your myLife e-mail account before you join myUnisa.

• Go to http://my.unisa.ac.za and click on the “Join myUnisa” link.

• Complete the verification process. (Please read ALL the instructions on the screen.)

Why is it important to become a myUnisa user?

myUnisa will provide you with 24-hour access to your information and learning resources. It will
also allow you to become part of an online learning community, which means that you will be
able to interact with your lecturers and fellow students.

What does it cost to join myUnisa?

myUnisa and myLife are free to all registered Unisa students. If you do not have your own
internet access, however, you may need to visit an internet cafe, library or learning centre in
your area. These centres provide access to the internet for a small fee.

I’ve now registered on myUnisa. How do I login to myUnisa?

Go to http://my.unisa.ac.za, enter your student number in the field labelled “student no” and
enter the password you created during the joining procedure. Do not confuse this password with
the myLife password you will be using for your e-mail account.
4
 TRL3706/201

Who should I call if I have a problem with myUnisa?

You are welcome to contact Unisa at myUnisaHelp@unisa.ac.za if you have any problems with
myUnisa. Please remember to include your full names, student number and brief summary in
the e-mail.

 myLife e-mail account

How do I claim my myLife e-mail account?

As a registered Unisa student, you already have this e-mail account. Please note that you need
to claim your myLife e-mail box if you wish to receive any e-mail communication from Unisa.

• Go to myUnisa at http://my.unisa.ac.za and click on the “Claim myLife e-mail” link.

• Provide us with your details by completing the e-form on the screen. This is done for
verification purposes.

• Receive your myLife address and password.

• Access your e-mail account.

Check your myLife e-mail frequently, as it will be your responsibility to manage your myLife e-
mail account. Please note that your myLife e-mail address will be the only official means of
electronic communication between Unisa and you. Should you wish to keep/use an existing e-
mail account, you will need to forward or redirect your mail from your myLife account to your
preferred e-mail address.

Contact Unisa at myLifeHelp@unisa.ac.za if you encounter any problems with your myLife
account.

How can I access my myLife e-mail account?

myLife is a web-based e-mail service, which means that you can access your e-mail from
anywhere in the world using an internet browser. Use the link http://www.outlook.com, your
myLife ID (studentnumber@mylife.unisa.ac.za) and your password.

5
What should I do to forward my myLife e-mail account to another account?

If you prefer to use another e-mail account, you can configure your myLife account to forward e-
mails automatically. Please note that the functionality listed here is not available in all browsers.
To use the complete set of features available in the Outlook web application, you need to use
Internet Explorer 7 or Internet Explorer 8. Most features are also supported in Firefox 3.0.1 on
computers running Windows XP, Windows 2003, Windows Vista, Windows Server 2008 and
Windows 7 operating systems, and Safari 3.1 on the Mac OS X operating system.

To redirect your myLife e-mail to another e-mail account, please do the following:

• Login to your myLife account (http://outlook.com).

• Click on “Options” (top right-hand corner of the myLife e-mail screen).

• Click on the “Organize your inbox with rules” tab.

• Click on the “New” tab.

• Click on the “When the message arrives, and…” on the drop-down list.

• Select the “Apply to all messages” option.

• Click on the “Do the following:” drop-down list.

• Select the “Redirect the message to…” option.

• In the “To” box, type in the e-mail address you want the mail redirected to.

• Click on “OK”.

• Click on “OK”.

• Click on “Save”.

6
 TRL3706/201

2. GENERAL INFORMATION

Your semester mark is derived from the marks you obtain for your assignments. Without a
semester mark, you will not be allowed to write the examination. Please check with the
Assignment Department (assign@unisa.ac.za), either at your regional office or at the
Muckleneuk campus (Pretoria), whether your assignments were received and marked;
alternatively, consult your myUnisa website.

If you need more information about your assignments, or have other administrative queries,
please contact Unisa by the following means:

• Unisa website (http://www.unisa.ac.za & http://mobi.unisa.ac.za)

All study-related information is now available on the new Unisa corporate website in
both web and mobi formats.
• myUnisa (https://my.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda)
You can access your own information via the myUnisa website or mobi site.
• E-mail (info@unisa.ac.za)
You can send an e-mail to info@unisa.ac.za for information on how to contact Unisa via
e-mail.
• SMS (32695) – (only for students in South Africa)
You may send an SMS to 32695 for more information on how to contact Unisa via SMS.
You will receive an auto response SMS with the various SMS options. The cost per
SMS is R1,00.
• Fax (012 429 4150)
You can fax you enquiries to 012 429 4150, where after it will be distributed to and
processed by the relevant department.

Remember that your semester mark will contribute 20% to your final mark, while your
examination will count 80%.

7
 3. FEEDBACK ON COMPULSORY ASSIGNMENTS

2nd SEMESTER 2015 Assignment 01

Due date Unique number Scope

1 September 2015 584924 Study units 1-5

“Road transport in South Africa is subject to a combination of entry and safety

regulations”.

In freight transport, the emphasis is on technical (safety) regulation, while the

passenger transport policy provides for both entry and technical regulation.

a) Differentiate between economic and technical regulation.

b) Explain the elements of technical regulation; refer specifically to the implication of

enterprise’s costing structures in order to meet certain standards.

c) In your opinion, what are the advantages of transport firms adhering to technical
regulation standards?

The content of this assignment should be two (2) A4 pages, Font Arial 11 and line
spacing 1.15. For an online submission, please convert your document into a PDF
document.

(Please note. You should study the relevant section in the study guide and thereafter
draft the assignment answer. Copying the study guide is not acceptable and no marks
will be awarded.) Total: 20 marks

8
 TRL3706/201

3.1 Feedback on compulsory assignment 01

(Refer to pages 22 to 25 of your Study Guide)

a) The object of technical (or safety) regulation is to protect operators, their employees,
transport users, the general public and the infrastructure (roads). Technical regulation
applies to the roadworthiness and condition of vehicles, the qualifications of operators, and
operating procedures. Although control of these factors is not concerned with economics, it
does affect the costs of an enterprise. Most of the measures cause an increase in costs,
since carriers have to meet certain standards.

Economic regulation relates to the number of transport services and control of the prices
(tariffs) charged for transport services. The number of transport services is regulated by
restricting the entry of new carriers. A permit may be issued to a carrier if he or she is able
to prove that the service is needed, that there is no duplication of services, and that he or
she is able to satisfy the need effectively. The permit specifies the vehicle to be used, the
route along which it can operate and the commodities that may be transported. The same
applies to freight and passenger transport. Tariffs are regulated by prescribing specific
tariffs for certain categories of goods.

b) The elements of technical regulation are as follows:

1) Regulation of vehicles. The vehicles used by carriers (for both freight and
passengers) have to comply with certain standards and are subject to regular
inspection. Governments usually formulate rules and regulations governing the
length, width, height and mass of vehicles in order to protect other road users and
the road infrastructure. The roadworthiness of vehicles is checked regularly and a
certificate of fitness is issued to certify that a vehicle is roadworthy. Aspects that are
checked include brakes, lights, tyres, hazard warnings and the steering mechanism.
Moreover, every vehicle must be licensed.

9
 2) Regulation of operators’ qualifications. Operators (owners) of road transport
enterprises are required to register as carriers. Their drivers have to be in possession
of a valid and appropriate driver’s licence and a public driving permit. Other
regulations specify the maximum period for which a driver may operate a vehicle
without a break and the use of alcohol.

3) Regulation of operating procedures. The various levels of government prescribe a

variety of traffic regulations, mainly for traffic safety (e.g. speed limits, traffic signs
and traffic flow).

c) The benefits of adhering to regulations are various but not limited to:

1) Assists government to prevent monopolies which enhances healthier competition.

2) Control of externalities such as pollution and traffic congestion which leads to cleaner
and healthier environment for all.
3) There will be less penalties and fines thereby cutting costs and therefore better
chance to make profit.
4) Better usage and fewer damages of roads making them safer for all.
5) Better integration of transport systems with broad economic objectives such as land
use.
6) Better transport coordination to ensure an adequate supply of transport and prevent
duplication of transport facilities and services and, thus, wastage of resources.

Find out also from your place of work what benefits they experience by adhering to the
applicable regulations.

Please note these answers only refer to the study guide. Each student’s answer is marked
according to his/her own application of the study guide

10
 TRL3706/201

3.2 Feedback on compulsory assignment 02

2nd SEMESTER 2015 Assignment 02

Due Date Unique Number Scope

1 October 2015 584929 Study Units 6-10

The figure above illustrates the basic principles of activity-based-costing. Define

the concept of “activity-based-costing” by providing a relevant example of how i
can be applied in a road transport business. From a management perspective
briefly discuss the purpose of costing.

The content of this assignment should be two (2) A4 pages, Font Arial 11 and
line spacing 1.15. For an online submission, please convert your document
into a PDF document.

(Please note. You should study the relevant section in the study guide and
thereafter draft the assignment answer. Copying the study guide is not
acceptable and no marks will be awarded.) Total: 20 marks

11
In answering these questions you should refer to section 10.7 page 151 in the study guide.
Copying and pasting is not acceptable when wring your assignment. It is rather expected that
you explain and apply the content of the study guide in your words.

Refer to section 8 page 102 – 103 in the Study Guide.

Introduction

The expenses reported on an income statement or the information contained in a balance sheet
is not sufficient for management decision-making, since it reflects the overall financial
performance of the enterprise and does not indicate the costs of individual activities. It is
therefore important consider the costing of individual vehicles, trips and routes in order to
empower management to make sound decisions as well as using relevant methods for
recording vehicle running costs, since effective records are a prerequisite for accurate costing.

Concepts of activity-based costing (ABC)

Certain costs cannot be directly attributed to output (e.g. kilometres operated, ton-kilometres or
passenger kilometres), but have to be allocated to such output. Cost allocation is therefore
frequently arbitrary. According to Bowersox et al (2007:389), a partial solution to the problem of
arbitrary cost allocation is activity-based costing (ABC). The ABC concept suggests that costs
first be traced to activities and that activities then are related to specific product or customer
segments of a business. Hicks (1992:4) provides an excellent definition of ABC:

Activity-based costing is a cost accounting technique which methodically charges all of an

organisation’s indirect costs to the “activities” that make the costs necessary and then
distributes the activity’s costs to the products that make the activities necessary.

Activity-based costing (ABC) developed as a result of the spread of advanced manufacturing

technology. Advanced manufacturing technology resulted in overhead costs (which cannot be
directly ascribed to individual producers) becoming a substantial proportion of production costs,
while the direct cost proportion declined. Most overheads are fixed in the short term, making it
extremely difficult to allocate these costs to specific products. Although this costing method
originated in the manufacturing industry, it is equally applicable to the transport industry, since
many costs are common to different services.
12
 TRL3706/201

When ABC is applied in road transport, three main elements of the definition of ABC require
clarification. These are indirect costs, activities and products.

In a nutshell, ABC in road transport involves identifying appropriate variables or cost drivers in
order to allocate common costs to individual vehicles, trips or routes. These variables should
reflect the resources that have been used in rendering the service. Traditionally, costing in road
transport is based on distance (kilometres). However, it is clear from the description of the main
cost elements in study unit 7 that many cost items relate to time rather than distance. Variables
relating to time therefore have to be included in the costing system. This principle is illustrated in
figure 8.1 and applied in the subsequent discussion. These variables (e.g. vehicle-kilometres,
vehicle-hours, volumes or number of tons or passengers and the number of peak vehicles) can
be used to allocate costs to specific transport products. Payload can, for example, be used to
allocate overheads to vehicles. Similarly, days or hours can be used to allocate all fixed costs to
a particular trip.

The purpose of costing

Costing has two main aims, namely to facilitate financial reporting and to serve as a basis for
management decisions. Financial reports are usually based on historical cost data, and
although they are an indication of an enterprise’s past performance, they are of little use for
effective managerial decisions that are future oriented. Prevailing or anticipated conditions may
differ considerably from past conditions so that historical data should be adapted to reflect
existing or expected conditions. Changes in fuel prices, for example, give rise to changes in fuel
costs. In particular, the cost information used for planning (e.g. preparing budgets) should be
prospective, and the information used for control should be as up-to-date as possible.
Remember that costing in this module is considered from the perspective of the management of
a road transport business (to serve as the basis for management decisions) and not from an
accounting perspective.

From a management perspective, costing serves the following specific purposes:

(1) determining profit

(2) quoting tariffs

13
(3) budgeting

(4) establishing performance criteria for comparing a carrier’s transport activities with those of
other enterprises operating in similar circumstances

(5) detecting poor performance by individual vehicles

(6) determining the best time to replace or even to scrap vehicles

(7) determining the suitability of a vehicle or certain accessories for given operating conditions

Conclusion

Costing is of vital importance, mainly for management decisions on tariff fixing and profit
planning, and also assists in compiling budgets. It involves allocating common costs to
individual services in relation to the resources or variables that cause the costs (i.e. peak
vehicles used, kilometres travelled or hours operated).

Please note these answers only refer to the study guide. Each student’s answer is
marked according to his/her own application of the study guide.

4. EXAMINATION INFORMATION

4.1 Examination admission

Submission of compulsory assignment 01 will provide you with admission to the examination.
However, both the compulsory assignments will count towards your semester mark, which will
contribute towards your final mark.

Composition of Semester Mark

Compulsory Assignment 01 50%
Compulsory Assignment 02 50%
Total Semester Mark 100%

Composition of Final Mark

14
 TRL3706/201

Semester Mark 20%

Examination Mark 80%
Final Mark 100%

You have to obtain a minimum of 40% in the examination, regardless of your semester mark.
The average of the semester mark and the examination mark must be at least 50% for you to
pass the module.

EXAMPLE:
If your semester mark is 55% and your examination mark is 60%, your final mark will be
calculated as follows:
0,2 x 55% = 11% 0,8 x 60% = 48%
Your final mark is therefore 59% (11% + 48%).
This is higher than 50%, which means that you passed the module.

4.2 Examination period

This module is offered as a semester module. This means:

• If you are registered in the first semester you will write the examination in May/June 2015.
• If you are registered in the second semester you will write the examination in
October/November 2015.

4.3 Examination date

The date for the exam will be communicated to you by the Examination Department.

4.4 Previous examination papers

Examination papers are available on myUnisa, under “official study material” to help you with
your preparations with the upcoming examination.

15
4.5 Format of the examination paper

The Road Transport examination paper consists of a two-hour written examination counting
70 marks. The paper consists of Section A with short questions and Section B with longer
written questions.

The TWO-HOUR examination paper will consist of the following format:

SECTION A
Answer ALL the questions in this section

Question Type Marks Total Marks

Question 1 Compulsory short questions 20 20

SECTION B
Answer any TWO of the three questions in this section
Question Type Marks Total Marks
Question 2 Written questions 25
Question 3 Written questions 25 50
Question 4 Written questions 25
70

16
 TRL3706/201

Section A comprises of short questions totalling 20 marks. You must answer ALL the
questions in this section.

Section B consists of three (3) questions of which you must answer any two (2) questions.
Each question will consist of long and short questions. Short questions will include name,
define and describe type questions, long questions will include discuss and explain type
questions. These questions can be asked from a combination of study units.

Please note that only the first two (2) questions will be marked if you answer all three (3)
questions in this section. If you do however answer all three (3) questions please ensure that
you cross out the question that you do not want to be marked. Failing to do so may result in you
losing marks.

4.6 Guidelines for the examination

For the examination questions you can expect mostly theoretical questions. Please
prepare in advance for the exam. Where required, you will have to apply the information
given to you in the examination paper practically.

You will need to know your facts well and write them in an organised and logical way. Make
sure that your facts are relevant to the question! Remember that it is not the length (quantity) of
your answer that counts, but the quality of the information that you provide. It is therefore
recommended that you read through all the questions carefully and consider the mark
allocation for each question before answering. This will help you to structure your answers
correctly, since the mark allocation indicates how much information to include in your answer.
For example, if the question is worth five marks, it means that you should provide five valid
points or facts in your answer.

The examination paper consists of questions from all study units. In order to pass the exam, it
is advisable to study the whole study guide and not only your assignments.

17
Remember to read through your study material consistently and to go through all the activities
listed at the end of each study unit. Also work carefully through the questions in your
compulsory written assignments. All these activities and assignment questions are valuable
for revision purposes.

4.7 Guidelines for answering an examination paper

Please follow these useful guidelines when you write your examination:

1. When you get your examination question paper, the first thing that you should do is to
take two (2) minutes to read through the paper very carefully.

2. Please make sure that your handwriting is neat and easy to read. Make full use of your
answer book; you will have enough space to write all you need.

3. Do not re-write the question in your answer. It is not necessary and you are wasting
your own time. Avoid doing this at all times.

4. When answering the short questions, look at how many marks are being awarded for
the answer. This is an indication of how many facts your answer should contain. Do not
write half a page in an answer to a question that counts only three (3) marks, for
example. You will not benefit in any way if you do this. If the question counts three (3)
marks, that is the maximum mark that you can achieve for that particular question.

5. When you have to name or list three (3) facts, for example, you are allowed to write your
answer in the form of bullet points.

6. When asked to name and describe something, you have to name a fact and give a brief
discussion/description/explanation of that particular fact.

7. When asked to explain, define, describe or discuss something, you have to make use
of full sentences in your answer. Once again, make sure that you are aware of how many
marks the question is worth so that you know how many facts to give.

18
 TRL3706/201

8. Avoid repeating yourself unnecessarily, as this wastes time.

9. Make sure that you discuss the correct facts in a logical manner in order to achieve the
highest possible mark.

10. Please also ensure that you fill in your personal details correctly (eg your student
number and course code) on the front cover of the examination script.

©
Unisa 2015

19
 In terms of the Copyright Act 98 of 1978 no part of this material may be
reproduced, be stored in a retrieval system, be transmitted or used in any form or
be published, redistributed or screened by any means (electronic, mechanical,
photocopying, recording or otherwise) without the prior written permission of
UNISA. However, permission to use in these ways any material in this work that
is derived from other sources must be obtained from the original sources.

20
 TRL3706/201/1/2016

Tutorial Letter 201/1/2016

ROAD TRANSPORT

TRL3706

Semester module

Department of Transport Economics, Logistics and

Tourism
This tutorial letter contains important information
about your module.

Bar code

Open Rubric
 CONTENTS

1. myUnisa

2. GENERAL INFORMATION

3. FEEDBACK ON ASSIGNMENTS

3.1 Feedback on Compulsory Assignment 01

3.2 Feedback on Compulsory Assignment 02

4. EXAMINATION INFORMATION

4.1 Examination admission

4.2 Examination period
4.3 Examination date
4.4 Previous examination papers
4.5 Format of the examination paper
4.6 Guidelines for the examination
4.7 Guidelines for answering an examination paper

2
 TRL3706/201/1/2016

Dear Student

I hope that you are finding your studies interesting and informative! We are nearing the end of
the semester, and soon it will be time for the examination! Please read through this tutorial
letter carefully as it contains feedback on Compulsory Assignments 01 and 02, as well as
important guidelines for your examination.

You are welcome to contact me at the contact details below if you have any academic queries
or wish to make an appointment to see me. Please note that the Department of Transport
Economics, Logistics and Tourism moved to a new building in Hazelwood (cnr of Dely and
Albert Streets).

My contact details are:

Tel:012 433 4718
Email: Dsantjm@unisa.ac.za

If you are not yet a member of Unisa’s online learning community, please register to become a
member of myUnisa as soon as possible! I use this website to communicate important
announcements during the semester. myUnisa will give you access to all the online study
material for the module. Remember that you can use myUnisa’s discussion forum to ask me
any questions relating to the content of this module that you do not fully understand. It also
allows you to discuss difficult topics with your fellow students.

I hope that you are enjoying your studies and I wish you all the best in your preparation for the
examination.

Kind regards
Mrs J. dos Santos Rocha
LECTURER: Road Transport

3
 1. myUnisa

What is myUnisa?

myUnisa is a secure website for registered Unisa students, which will give you direct access to
important information, such as course information, and will allow you to update your personal
information on the Unisa student system. You will also be able to join online discussion forums,
submit your assignments and access a number of other resources.

How do I become a myUnisa user?

After receiving confirmation from the university that you are a registered Unisa student, you
must do the following to become part of this innovative learning community:

• Claim your myLife email account before you join myUnisa.

• Go to http://my.unisa.ac.za and click on the “Join myUnisa” link.

• Complete the verification process. (Please read ALL the instructions on the screen.)

Why is it important to become a myUnisa user?

myUnisa will provide you with 24-hour access to your information and learning resources. It will
also allow you to become part of an online learning community, which means that you will be
able to interact with your lecturers and fellow students.

What does it cost to join myUnisa?

myUnisa and myLife are free to all registered Unisa students. If you do not have your own
internet access, however, you may need to visit an internet cafe, library or learning centre in
your area. These centres provide access to the internet for a small fee.

I’ve now registered on myUnisa. How do I login to myUnisa?

Go to http://my.unisa.ac.za, enter your student number in the field labelled “student no” and
enter the password you created during the joining procedure. Do not confuse this password with
the myLife password you will be using for your email account.
4
 TRL3706/201/1/2016

Who should I call if I have a problem with myUnisa?

You are welcome to contact Unisa at myUnisaHelp@unisa.ac.za if you have any problems with
myUnisa. Please remember to include your full names, student number and a brief summary of
the problem in the email.

 myLife email account

How do I claim my myLife email account?

As a registered Unisa student, you already have this email account. Please note that you need
to claim your myLife email box if you wish to receive any email communication from Unisa.

• Go to myUnisa at http://my.unisa.ac.za and click on the “Claim myLife email” link.

• Provide us with your details by completing the e-form on the screen. This is done for
verification purposes.

• Receive your myLife address and password.

• Access your email account.

Check your myLife email frequently, as it will be your responsibility to manage your myLife email
account. Please note that your myLife email address will be the only official means of electronic
communication between Unisa and you. Should you wish to keep/use an existing email
account, you will need to forward or redirect your mail from your myLife account to your
preferred email address.

Contact Unisa at myLifeHelp@unisa.ac.za if you encounter any problems with your myLife
account.

How can I access my myLife email account?

myLife is a web-based email service, which means that you can access your email from
anywhere in the world using an internet browser. Use the link http://www.outlook.com, your
myLife ID (studentnumber@mylife.unisa.ac.za) and your password.

5
What should I do to forward my myLife email account to another account?

If you prefer to use another email account, you can configure your myLife account to forward
emails automatically. Please note that the functionality listed here is not available in all
browsers. To use the complete set of features available in the Outlook web application, you
need to use Internet Explorer 7 or Internet Explorer 8. Most features are also supported in
Firefox 3.0.1 on computers running Windows XP, Windows 2003, Windows Vista, Windows
Server 2008 and Windows 7 operating systems, and Safari 3.1 on the Mac OS X operating
system.

To redirect your myLife email to another email account, please do the following:

• Login to your myLife account (http://outlook.com).

• Click on “Options” (top right-hand corner of the myLife email screen).

• Click on the “Organise your inbox with rules” tab.

• Click on the “New” tab.

• Click on the “When the message arrives, and…” on the drop-down list.

• Select the “Apply to all messages” option.

• Click on the “Do the following:” drop-down list.

• Select the “Redirect the message to…” option.

• In the “To” box, type in the email address you want the mail redirected to.

• Click on “OK”.

• Click on “OK”.

• Click on “Save”.

6
 TRL3706/201/1/2016

2. GENERAL INFORMATION

Your semester mark is derived from the marks you obtain for your assignments. Without a
semester mark, you will not be allowed to write the examination. Please check with the
Assignment Department (assign@unisa.ac.za), either at your regional office or at the
Muckleneuk campus (Pretoria), whether your assignments were received and marked;
alternatively, consult your myUnisa website.

If you need more information about your assignments, or have other administrative queries,
please contact Unisa by the following means:

 Unisa website (http://www.unisa.ac.za & http://mobi.unisa.ac.za)

All study-related information is now available on the new Unisa corporate website in
both web and mobi formats.
 myUnisa (https://my.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda)
You can access your own information via the myUnisa website or mobi site.
 Email (info@unisa.ac.za)
You can send an email to info@unisa.ac.za for information on how to contact Unisa via
email.
 SMS 32695 – (only for students in South Africa)
You may send an SMS to 32695 for more information on how to contact Unisa via SMS.
You will receive an auto response SMS with the various SMS options. The cost per
SMS is R1,00.
 Fax 012 429 4150
You can fax you enquiries to 012 429 4150, from where it will be distributed to and
processed by the relevant department.

Remember that your semester mark will contribute 20% to your final mark, while your
examination will count 80%.

7
 3. FEEDBACK ON COMPULSORY ASSIGNMENTS 01 & 02

1ST SEMESTER 2016 Assignment 01

Due date Unique number Scope

18 March 2016 866044 Study units 1-5

1. “Road transport in South Africa is subject to a combination of entry and safety

regulations.” In freight transport, the emphasis is on technical (safety) regulation,
while the passenger transport policy provides for both entry and technical
regulations.

a) In your opinion, what are the advantages of transport firms adhering to technical
regulation standards? (5)

b) Evaluate these types of regulations and discuss the elements of technical

regulation; refer specifically to the implication of enterprise’s costing structures in
order to meet certain standards. The content of this assignment should be
two (2) A4 pages, Font Arial 11 and line spacing 1.15. For an online submission,
please convert your document into a PDF document. (20)

(Please note: You should study the relevant section in the study guide and thereafter
draft the assignment answer. Copying the study guide is not acceptable and no marks
will be awarded.) Total: 25 marks

8
 TRL3706/201/1/2016

NB:

These answers are direct extracts from MO001 and it is a theoretical guide to help you
answer the questions. Each student’s answers are marked according to his/her own
application of the theory.

Copying and pasting is not acceptable when writing your assignments. At this level we
expect you to explain and apply the content of the MO in your own words.

3.1 Feedback on compulsory Assignment 01

(Refer to learning unit 3, from page 20 of your MO001)

a) The advantages of adhering to regulations are various but not limited to the
following:

 Assists government to prevent monopolies and this enhances healthier competition.

 Control of externalities such as pollution and traffic congestion, which leads to a cleaner
and healthier environment for all.
 There will be less penalties and fines, thereby cutting costs and allowing for a better
chance to make profit.
 Better use of and less damage to roads, making them safer for all.
 Better integration of transport systems with broad economic objectives, such as land use.
 Better transport coordination to ensure an adequate supply of transport and prevent
duplication of transport facilities and services, thus less wastage of resources.

b) Technical and economic regulations

Technical regulation applies to the roadworthiness and condition of vehicles, the

qualifications of operators, and operating procedures. Although control of these factors is
not concerned with economics, it does affect the costs of an enterprise. Most of the
measures cause an increase in costs, since carriers have to meet certain standards. The

9
 object of the technical (or safety) regulation is to protect operators, their employees,
transport users, the general public and the infrastructure (roads).

Economic regulation relates to the number of transport services and control of the prices
(tariffs) charged for transport services. The number of transport services is regulated by
restricting the entry of new carriers. For example, permits that may be issued to a carrier
serves as proof that the service is needed; that there is no duplication of services, and that
the service is able to satisfy the need effectively.

Regulation is basically a form of intervention by government, and the intention is to

regulate only where this is essential. Government will apply different forms of regulation to
ensure that its vision and objectives are realised – for example, if it needs to regulate to
ensure that desired services which would not be financially viable, are provided. The form
of regulation will differ according to circumstances.

The White Paper on National Transport Policy of 1996 provides the broad framework for
road transport regulation in South Africa, which serves to support South Africa’s vision in
terms of transport. This vision aims at providing safe, reliable, effective, efficient, and fully
integrated transport operations and infrastructure, which will best meet the needs of freight
and passenger customers; at improving levels of service and cost in a fashion which
supports government strategies for economic and social development while being
environmentally and economically sustainable. This vision is enabled by the national
government’s transport policy to generally achieve effectiveness, safety and efficiency
within the transport sector.

The elements of technical regulation are as follows:

Regulation of vehicles ─ vehicles used by carriers have to comply with certain standards
and are subject to regular inspections. Governments usually formulate rules and
regulations governing the length, width, height and mass of vehicles in order to protect
other road users and the road infrastructure. The roadworthiness of vehicles is checked
regularly and a certificate of fitness is issued to certify that a vehicle is roadworthy.
Aspects that are checked include brakes, lights, tyres, hazard warnings and the steering
mechanism. Moreover, every vehicle must be licensed.

Regulation of operators’ qualifications ─ operators of road transport enterprises are

required to register as carriers. Their drivers have to obtain a valid and appropriate driving

10
 TRL3706/201/1/2016

license and a public driving permit. Other regulations specify the maximum period for
which a driver may operate a vehicle without a break and the use of alcohol.

Regulation of operating procedures ─ this is mainly to regulate safety on the roads

through, for example the use of speed limits, traffic signs, traffic flow, etc.

3.2 Feedback on compulsory Assignment 02

1st SEMESTER 2016 Assignment 02

Due Date Unique Number Scope

11 April 2016 710916 Learning Units 6-10

DBA CC is a transport company providing both freight and passenger road transport
services. They have appointed you as their sales manager.

1. Describe how you would apply the activity-based costing. (9)

2. Explain the practical measures that you would introduce to improve operational
efficiency at DBA. (6)

3. Explain what the composition of DBA’s road transport costs would be. (10)

The content of this assignment should be two (2) A4 pages, font Arial 11 and
line spacing 1.15. For an online submission, please convert your document into
a PDF document.

(Please note: You should study the relevant section in the MO001 and
thereafter draft the assignment answer. Copying the study guide is not
acceptable and no marks will be awarded.) Total: 25 marks

(Refer to Learning Unit 8, from page 93 of your MO001.)

11
1. Activity-based costing (ABC)

Certain costs cannot be directly attributed to output (e.g. kilometres operated, ton-kilometres or
passenger kilometres), but have to be allocated to such output. Cost allocation is therefore
frequently arbitrary. According to Bowersox et al (2007:389), a partial solution to the problem of
arbitrary cost allocation is activity-based costing (ABC). The ABC concept suggests that costs
first be traced to activities and that activities then are related to specific product or customer
segments of a business. Hicks (1992:4), provides an excellent definition of ABC:

Activity-based costing is a cost accounting technique which methodically charges all of an

organisation’s indirect costs to the “activities” that make the costs necessary and then
distributes the activity’s costs to the products that make the activities necessary.

Activity-based costing (ABC) developed as a result of the spread of advanced manufacturing

technology. Advanced manufacturing technology resulted in overhead costs (which cannot be
directly ascribed to individual producers) becoming a substantial proportion of production costs,
while the direct cost proportion declined. Most overheads are fixed in the short term, making it
extremely difficult to allocate these costs to specific products. Although this costing method
originated in the manufacturing industry, it is equally applicable to the transport industry, since
many costs are common to different services.

When ABC is applied in road transport, three main elements of the definition of ABC require
clarification. These are indirect costs, activities and products.

In a nutshell, ABC in road transport involves identifying appropriate variables or cost drivers in
order to allocate common costs to individual vehicles, trips or routes. These variables should
reflect the resources that have been used in rendering the service. Traditionally, costing in road
transport is based on distance (kilometres). However, it is clear from the description of the main
cost elements in study unit 7 that many cost items relate to time rather than distance. Variables
relating to time therefore have to be included in the costing system. This principle is illustrated in
figure 8.1 and applied in the subsequent discussion. These variables (e.g. vehicle-kilometres,
vehicle-hours, volumes or number of tons or passengers and the number of peak vehicles) can
be used to allocate costs to specific transport products. Payload can, for example, be used to
allocate overheads to vehicles. Similarly, days or hours can be used to allocate all fixed costs to
a particular trip.

12
 TRL3706/201/1/2016

The purpose of costing

Costing has two main aims, namely to facilitate financial reporting and to serve as a basis for
management decisions. Financial reports are usually based on historical cost data, and
although they are an indication of an enterprise’s past performance, they are of little use for
effective managerial decisions that are future oriented. Prevailing or anticipated conditions may
differ considerably from past conditions so that historical data should be adapted to reflect
existing or expected conditions. Changes in fuel prices, for example, give rise to changes in fuel
costs. In particular, the cost information used for planning (e.g. preparing budgets), should be
prospective, and the information used for control should be as up-to-date as possible.
Remember that costing in this module is considered from the perspective of the management of
a road transport business (to serve as the basis for management decisions) and not from an
accounting perspective.

From a management perspective, costing serves the following specific purposes:

(1) determining profit

(2) quoting tariffs

(3) budgeting

(4) establishing performance criteria for comparing a carrier’s transport activities with those of
other enterprises operating in similar circumstances

(5) detecting poor performance by individual vehicles

(6) determining the best time to replace or even to scrap vehicles

(7) determining the suitability of a vehicle or certain accessories for given operating conditions

Conclusion

Costing is of vital importance, mainly for management decisions on tariff fixing and profit
planning, and also assists in compiling budgets. It involves allocating common costs to
individual services in relation to the resources or variables that cause the costs (i.e. peak
vehicles used, kilometres travelled or hours operated).

13
2. Explain the practical measures that you will introduce to improve efficiency at DBA. (Refer
to Learning Unit 6 of your MO001.)

Users of transport services, whether passengers or consigners, set a number of requirements,

depending on their particular circumstances. They would consider the transport service efficient
if it meets their requirements. However, the service provider has to provide this service within
the framework of the relevant economic principles. There are both operational and user
efficiencies in road transport.

Operational efficiency

Load factor and capacity potential

Load factor is a direct criterion for equipment utilisation and is often used to measure efficiency.
This factor is determined by calculating the ratio of actual freight-ton kilometres to potential
capacity-ton kilometres in the case of goods, or actual passenger kilometres to seat kilometres
in the case of passengers. The load factor is per definition the utilised output divided by the
available output.

The load factor of different enterprises varies depending on the nature of the service and the
type and density of the commodities (or passengers) transported.

A vehicle may be used on different routes, or it can be used for ad hoc trips. This can be
compared with daily scheduling. For which routes may change from day to day. Vehicles can
operate on specific routes, and the number of trips the vehicle can handle can then be
calculated.

Other efficiency criteria

Criteria to measure efficiency may be divided into the following categories:

 cost criteria

• cost distribution criteria

• human resources criteria

• service utilisation criteria

14
 TRL3706/201/1/2016

• revenue criteria

User efficiency

Service quality is rated in terms of service attributes that coincide with users’ requirements.
Road transport enterprises should constantly strive to improve the quality of their service in
order to keep existing users happy and attract new customers. The most important quality
factors are summarised below. There are various factors that are used to measure whether road
transport services meet these requirements:

Speed
Speed in fact refers to the total duration or transit time of freight trips (or total journey time in the
case of passengers), including loading, unloading and waiting times. Users prefer a mode of
transport with no or few interruptions that provides a door-to-door service.

In passenger transport, total travelling time can be reduced by shorter headways, optimal
routing and the optimal positioning of bus stops or bus terminals, while in freight transport, the
duration of trips depends on transit time between terminals, pickup and delivery times, and the
time consignments spend in warehouses.

Frequency

Frequency refers to the number of trips available on a particular route during a given period. In
freight transport, a high frequency means that less inventory is required. Road transport uses
relatively small vehicle units with relatively short turnaround times.

Capacity

The type of vehicles in use determines the carrying capacity of road transport. In most countries
carrying capacity is stipulated by law, with restrictions on axle load. Capacity can be adapted to
accommodate particular users’ needs. The adaptability of capacity is one of the primary reasons
why road transporters are able to supply a rapid service.

Safety

15
In passenger transport, safety is probably the most important consideration for users, since
death or injury prevents passengers from achieving the original purpose of their journey. Traffic
safety and violence and unrest are facets of users’ insistence on safety.

Safety can be improved through internal measures such as driver training, enforcing higher
competency standards, scheduling for outside peak times, and effective vehicle maintenance.

Completeness

“Completeness” refers to the ability of a transport enterprise to deliver a door-to-door service. In

passenger transport, operators should do their utmost to provide direct services. If such direct
services are not justified on economic grounds, operators should endeavour to coordinate the
various legs of the journey so that passengers need not wait long for a connection. Transferring
between vehicles or modes of transport is probably one of the most frustrating aspects of
passenger transport.

Low tariffs

Users generally require low, or at least fair, tariffs that are reconcilable with the service that is
provided. Freight transport users look at related costs, such as packaging, insurance and the
availability of goods.

3) Composition of road transport costs (Refer to Learning Unit 7page 85 of your

MO001)

Traditionally, road transport costs are divided into vehicle operating costs and overheads.
Vehicle operating costs are subdivided into vehicle standing costs and running costs. Standing
costs are linked to time and relate directly to a specific vehicle. Licences and insurance for each
vehicle are paid annually, whereas depreciation and interest on capital are normally accounted
for monthly. Wages for the crew of a vehicle are paid weekly or monthly.

Running costs are ascribed to vehicle movement, which comprises fuel, oil and lubricants, tyres
and maintenance. Toll fees are added to running costs, since they are paid only when the
vehicle is engaged in trips. Overheads are fixed costs that do not vary according to operating
activities, and are common to all fleet vehicles. Although some overhead components (e.g.
telephone, mail and bank costs) are variable, they remain insensitive to vehicle performance
and do not vary in a fixed ratio to output. For costing purposes, variable overheads may
therefore be regarded as a fixed cost. We could say that overheads and vehicle standing costs

16
 TRL3706/201/1/2016

are the fixed costs of a road transport enterprise, and that running costs are synonymous with
variable costs.

4. EXAMINATION INFORMATION

4.1 Examination admission

Submission of compulsory Assignment 01 will provide you with admission to the examination.
However, both compulsory assignments will count towards your semester mark, which will
contribute towards your final mark.

Composition of Semester Mark

Compulsory Assignment 01 50%
Compulsory Assignment 02 50%
Total Semester Mark 100%

Composition of Final Mark

Semester Mark 20%
Examination Mark 80%
Final Mark 100%

You have to obtain a minimum of 40% in the examination, regardless of your semester mark.
The average of the semester mark and the examination mark must be at least 50% for you to
pass the module.

17
EXAMPLE:
If your semester mark is 55% and your examination mark is 60%, your final mark will be
calculated as follows:
0,2 x 55% = 11% 0,8 x 60% = 48%
Your final mark is therefore 59% (11% + 48%).
This is higher than 50%, which means that you passed the module.

4.2 Examination period

This module is offered as a semester module. This means:

 If you are registered in the first semester you will write the examination in May/June 2016.
 If you are registered in the second semester you will write the examination in
October/November 2016.

4.3 Examination date

The date for the exam will be communicated to you by the Examination Department.

4.4 Previous examination papers

Examination papers are available on myUnisa, under “official study material” to help you with
your preparations for the upcoming examination.

4.5 Format of the examination paper

The Road Transport examination paper consists of a two-hour written examination counting
70 marks. The paper consists of Section A with short questions and Section B with longer
written questions.

The TWO-HOUR examination paper will have the following format:

SECTION A
Answer ALL questions in this section

Question Type Marks Total Marks

18
 TRL3706/201/1/2016

Question 1 Compulsory short questions 20 20

SECTION B
Answer any TWO of the three questions in this section
Question Type Marks Total Marks
Question 2 Written questions 25
Question 3 Written questions 25 50
Question 4 Written questions 25
70

Section A comprises short questions totalling 20 marks. You must answer ALL the
questions in this section.

Section B consists of three (3) questions of which you must answer any two (2). Each
question will consist of long and short questions. Short questions will include name, define and
describe type questions, while long questions will include discuss and explain type questions.
These questions can be asked from a combination of study units.

Please note that only the first two (2) questions will be marked if you answer all three (3)
questions in this section. If you do, however, answer all three (3) questions please ensure that
you cross out the question that you do not want to be marked. Failing to do so may result in you
losing marks.

4.6 Guidelines for the examination

For the examination questions you can expect mostly theoretical questions. Please
prepare in advance for the exam. Where required, you will have to apply the information
given to you in the examination paper practically.

You will need to know your facts well and write them in an organised and logical way. Make
sure that your facts are relevant to the question! Remember that it is not the length (quantity) of
your answer that counts, but the quality of the information that you provide. It is therefore

19
recommended that you read through all the questions carefully and consider the mark
allocation for each question before answering. This will help you to structure your answers
correctly, since the mark allocation indicates how much information to include in your answer.
For example, if the question is worth five marks, it means that you should provide five valid
points or facts in your answer.

The examination paper consists of questions from all study units. In order to pass the exam, it
is advisable to study the whole study guide and not only your assignments.

Remember to read through your study material consistently and to go through all the activities
listed at the end of each study unit. Also work carefully through the questions in your
compulsory written assignments. All these activities and assignment questions are valuable
for revision purposes.

4.7 Guidelines for answering an examination paper

Please follow these useful guidelines when you write your examination:

1. When you get your examination question paper, the first thing that you should do is to
take two (2) minutes to read through the paper very carefully.

2. Please make sure that your handwriting is neat and easy to read. Make full use of your
answer book; you will have enough space to write all you need.

3. Do not rewrite the question in your answer. It is not necessary and you are wasting
your own time. Avoid doing this at all times.

4. When answering the short questions, look at how many marks are being awarded for
the answer. This is an indication of how many facts your answer should contain. Do not
write half a page in an answer to a question that counts only three (3) marks, for
example. You will not benefit in any way if you do this. If the question counts three (3)
marks, that is the maximum mark that you can achieve for that particular question.

5. When you have to name or list three (3) facts, for example, you are allowed to write your
answer in the form of bullet points.

20
 TRL3706/201/1/2016

6. When asked to name and describe something, you have to name a fact and give a brief
discussion/description/explanation of that particular fact.

7. When asked to explain, define, describe or discuss something, you have to make use
of full sentences in your answer. Once again, make sure that you are aware of how many
marks the question is worth so that you know how many facts to give.

8. Avoid repeating yourself unnecessarily, as this wastes time.

9. Make sure that you discuss the correct facts in a logical manner in order to achieve the
highest possible mark.

10. Please also ensure that you fill in your personal details correctly (e.g. your student
number and course code) on the front cover of the examination script.

©
Unisa 2016

21
 In terms of the Copyright Act 98 of 1978 no part of this material may be
reproduced, be stored in a retrieval system, be transmitted or used in any form or
be published, redistributed or screened by any means (electronic, mechanical,
photocopying, recording or otherwise) without the prior written permission of
UNISA. However, permission to use in these ways any material in this work that
is derived from other sources must be obtained from the original sources.

22
 TRL3706/201/1/2017

Tutorial Letter 201/1/2017

ROAD TRANSPORT

TRL3706

Semester module
Department of Entrepreneurship, Supply Chain,
Transport, Tourism and Logistics Management

This tutorial letter contains important information

about your module.

Bar code

1
 TRL3706/201/1/2017

CONTENTS

Page No.
1. myUnisa…………………………………………………………………………………. .4

2. GENERAL
INFORMATION…………………………………………………………………………..7

3. FEEDBACK ON COMPULSORY ASSIGNMENTS 01 & 02…………………………..8

3.1 Feedback on compulsory Assignment 01………………………………………..8
3.2 Feedback on compulsory Assignment 02………………………………………..9

4. INFORMATION ON THE EXAMINATION …………………………………..............17

4.1 Examination admission ………………………………………………………….17
4.2 Examination period ………………………………………………………..........17
4.3 Examination date ………………………………………………………..………17
4.4 Previous examination papers …………………………………………………17
4.5 New format of the examination paper ………………………………………...17
4.6 Guidelines for the examination …………………………………………….. …18
4.7 Guidelines for answering an examination paper …………………………….19

2
 TRL3706/201/1/2017

Dear Student

I hope that you are finding your studies interesting and informative! We are nearing the
end of the semester and soon it will be time for the examination! Please read through this
tutorial letter carefully, as it contains feedback on compulsory Assignments 01 and 02
as well as important guidelines for your examination.

You are welcome to contact me, at the contact details below, if you have any academic
queries or wish to make an appointment to see me. Please note that the Department of
Transport Economics, Logistics and Tourism moved to a new building in Hazelwood (Cnr
of Deli and Pinaster).

My contact details are:

Tel:(012) 433 4718
E-mail: Dsantjm@unisa.ac.za

If you are not yet a member of Unisa’s online learning community, please register to
become a member of myUnisa as soon as possible! I use this website to
communicate important announcements during the semester. myUnisa will give you
access to all the online study material for the module. Remember that you can use the
myUnisa Discussion Forum to ask me any questions relating to the content of this
module that you do not fully understand. It also allows you to discuss difficult topics with
your fellow students.

I hope that you are enjoying your studies and wish you all the best in your preparation for
the examination.

Kind regards

Mrs J dos Santos Rocha

LECTURER: Road Transport

3
 TRL3706/201/1/2017

1. myUnisa

What is myUnisa?

myUnisa is a secure website for registered Unisa students, which will give you direct
access to important information, such as course information, and will allow you to update
your personal information on the Unisa student system. You will also be able to join
online discussion forums, submit your assignments and access a number of other
resources.

How do I become a myUnisa user?

After receiving confirmation from the university that you are a registered Unisa student,
you must do the following to become part of this innovative learning community:

• Claim your myLife e-mail account before you join myUnisa.

• Go to http://my.unisa.ac.za and click on the “Join myUnisa” link.

• Complete the verification process. (Please read ALL the instructions on the
screen.)

Why is it important to become a myUnisa user?

myUnisa will provide you with 24-hour access to your information and learning resources.
It will also allow you to become part of an online learning community, which means that
you will be able to interact with your lecturers and fellow students.

What does it cost to join myUnisa?

myUnisa and myLife are free to all registered Unisa students. If you do not have your
own internet access, however, you may need to visit an internet cafe, library or learning
centre in your area. These centres provide access to the internet for a small fee.

I’ve now registered on myUnisa. How do I login to myUnisa?

4
 TRL3706/201/1/2017

Go to http://my.unisa.ac.za, enter your student number in the field labelled “student no”
and enter the password you created during the joining procedure. Do not confuse this
password with the myLife password you will be using for your e-mail account.

Who should I call if I have a problem with myUnisa?

You are welcome to contact Unisa at myUnisaHelp@unisa.ac.za if you have any

problems with myUnisa. Please remember to include your full names, student number
and a brief summary of the problem in the e-mail.

 myLife e-mail account

How do I claim my myLife e-mail account?

As a registered Unisa student, you already have this e-mail account. Please note that
you need to claim your myLife e-mail box if you wish to receive any e-mail
communication from Unisa.

• Go to myUnisa at http://my.unisa.ac.za and click on the “Claim myLife e-mail” link.

• Provide us with your details by completing the e-form on the screen. This is done
for verification purposes.

• Receive your myLife address and password.

• Access your e-mail account.

Check your myLife e-mail frequently, as it will be your responsibility to manage your
myLife e-mail account. Please note that your myLife e-mail address will be the only
official means of electronic communication between Unisa and you. Should you wish to
keep/use an existing e-mail account, you will need to forward or redirect your mail from
your myLife account to your preferred e-mail address.

Contact Unisa at myLifeHelp@unisa.ac.za, if you encounter any problems with your

myLife account.

5
 TRL3706/201/1/2017

How can I access my myLife e-mail account?

myLife is a web-based e-mail service, which means that you can access your e-mail from
anywhere in the world using an internet browser. Use the link http://www.outlook.com,
your myLife ID (studentnumber@mylife.unisa.ac.za) and your password.

What should I do to forward my myLife e-mail account to another account?

If you prefer to use another e-mail account, you can configure your myLife account to
forward e-mails automatically. Please note that the functionality listed here is not
available in all browsers. To use the complete set of features available in the Outlook
web application, you need to use Internet Explorer 7 or Internet Explorer 8. Most features
are also supported in Firefox 3.0.1 on computers running Windows XP, Windows 2003,
Windows Vista, Windows Server 2008 and Windows 7 operating systems, and Safari 3.1
on the Mac OS X operating system.

To redirect your myLife e-mail to another e-mail account, please do the following:

• Login to your myLife account (http://outlook.com).

• Click on “Options” (top right-hand corner of the myLife e-mail screen).

• Click on the “Organize your inbox with rules” tab.

• Click on the “New” tab.

• Click on “When the message arrives, and…” on the drop-down list.

• Select the “Apply to all messages” option.

• Click on “Do the following:” on the drop-down list.

• Select the “Redirect the message to …” option.

• In the “To” box, type in the e-mail address you want the mail redirected to.

• Click on “OK”.

• Click on “OK” and click on “SAVE”.

6
 TRL3706/201/1/2017

Your semester mark is derived from the marks you obtain for your assignments.

2. GENERAL INFORMATION
Without a semester mark, you will not be allowed to write the examination. Please check
with the Assignment Department (assign@unisa.ac.za), either at your regional office or
at the Muckleneuk campus (Pretoria), whether your assignments were received and
marked; alternatively, consult your myUnisa website.

If you need more information about your assignments or have other administrative
queries, please contact Unisa by the following means:

 Unisa website (http://www.unisa.ac.za & http://mobi.unisa.ac.za)

All study-related information is now available on the new Unisa corporate website in
both web and mobi formats.
 myUnisa (https://my.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda)
You can access your own information via the myUnisa website or mobi site.
 E-mail (info@unisa.ac.za)
You can send an e-mail to info@unisa.ac.za for information on how to contact Unisa via
e-mail.
 SMS (32695) – (only for students in South Africa)
You may send an SMS to 32695 for more information on how to contact Unisa via SMS.
You will receive an auto response SMS with the various SMS options. The cost per
SMS is R1,00.
 Fax (012 429 4150)
You can fax you enquiries to 012 429 4150, where after it will be distributed to and
processed by the relevant department.

7
 TRL3706/201/1/2017

Remember that your semester mark will contribute 20% to your final mark, while your
examination will count 80%.

3. FEEDBACK ON COMPULSORY ASSIGNMENTS

1ST SEMESTER 2017 Assignment 01

Due date Unique number Scope

13 March 2017 778448 Learning units 1-5

Road transport operates in various environments. Discuss the macro environment of road
transport. (20)

NB:

These answers are direct extracts from MO001, which is a theoretical guide to help
you answer the questions. Each student’s answers are marked according to
his/her own application of the theory.

Copying and pasting is not acceptable when writing your assignments. At this
level we expect you to explain and apply the content of the MO in your own words.

3.1 Feedback on compulsory Assignment 01

8
 TRL3706/201/1/2017

(Refer to learning unit 2, from page 12 of your MO001)

Road transport enterprises operate in a macro environment that is characterised by

interaction between technological, economic, social, physical, institutional and political
variables. A road transport enterprise has practically no control over these variables and
its decisions have to be made within the framework of this macro environment. The road
transport industry, like any other industry, contributes both directly and indirectly to the
national economy, firstly by transporting freight and passengers and creating job
opportunities and secondly by consuming the goods and services produced by other
industries and supporting transport-related industries. The road transport industry
naturally influences the economic environment, but is in turn influenced by it. The road
transport industry patently interacts closely with the environment in which it operates. For
example, the demand for road transport services cannot be separated from the demand
for commodities and passenger trips.

A recession (downswing in the economy) or a drought (decline in agricultural production),

or the imposition of restrictions on imports or exports, has a negative impact on the
demand for road transport. By contrast, an upswing in the economy, a good agricultural
season or the lifting of restrictions on imports or exports has a positive impact on the
demand for road transport. The demand for road transport is therefore clearly sensitive to
economic change. Although the industry is extremely adaptable, road carriers are forced
to reduce capacity during an economic recession and, as a result, are often left with
excess capacity.

Technological change has a definite impact on road transport, although this change is
perhaps less drastic than in the case of the other transport modes. The utilisation of
improved technology to improve fuel consumption and safety (e.g., brake systems) and
to achieve more efficient communication (e.g., on board computers) necessitates capital
investment. Improved technology pertaining to systems (e.g., unit loads) and
consolidation necessitate adjustments in the overall operation and organisation of
transport enterprises.

9
 TRL3706/201/1/2017

The political environment also has a significant impact on the road transport industry.
Political decisions (e.g., about the resettlement of certain population groups, the
decentralisation of economic activities, the devolution of authority to lower levels of
government and deregulation) influence the demand for road transport services. These
decisions can either stimulate or stunt growth in the industry. Some political decisions
may promote effective utilisation of resources and healthy competition, whereas others
can create chaos in the industry by causing an oversupply and unhealthy competition
(e.g., taxi wars over routes). Such decisions could influence the entire structure of a
community (e.g., from residential to economic, or reconstitution or displacement of the
population as a result of relocation).

As far as the social environment is concerned, road transport fulfils an important function
by directly and indirectly providing jobs for thousands of people. It is to a large extent
influenced by external demands that bring about change and this, in turn, has social
implications for every community. The ecological environment, likewise, has a significant
impact on road transport. Two externalities currently enjoy attention, namely noise and
air pollution. Eliminating these external factors depends in large measure on
technological progress and regulatory measures.

The legal or regulatory environment influences the road transport industry in various
ways (e.g., the Road Traffic Act 29 of 1989, the National Road Traffic Act 93 of 1996,
and concomitant regulations), making provision for the road transport quality system
(RTQS). The RTQS, among other things, places restrictions on vehicle size, loading, axle
mass and protruding freight. It also lays down regulations pertaining to the
roadworthiness of vehicles and requirements vehicle drivers have to satisfy (e.g., they
have to hold professional drivers’ licences). The White Paper on National Transport
Policy of 1996 (South Africa 1996) clearly outlines the requirements for South African
transport. Various policy documents and legislation to implement and refine the broad
transport policy are formulated from time to time (e.g., the National Land Transport
Transition Act 22 of 2000, the National Land Transport Strategic Framework 2006–2011,

10
 TRL3706/201/1/2017

and the National Freight Logistics Strategy). Regulatory factors affect the structure of a
road transport enterprise in that it has to adopt certain procedures and guidelines and
take measures to ensure that it operates within the constraints of the law. In transport,
and especially in road transport, there is greater interaction between the elements of the
macro environment than in most other enterprises and sectors. This is because transport
is an integral part of the social, economic and physical environment. For this reason,
transport often comes under pressure from community and political organisations and is
used as an instrument to achieve social, economic and political objectives.

11
 TRL3706/201/1/2017

3.2 Feedback on compulsory Assignment 02

1st SEMESTER 2017 Assignment 02

Due date Unique number Scope

17 April 2017 692942 Learning units

6-10

You are a road transport expert. Discuss the basic cost concepts of the
road transport. (20)

(Refer to learning unit 7, from page 80 of your MO001.)

Activity-based costing (ABC)

Fixed costs are costs that do not change as output changes. In road transport, this
means that these costs remain constant, irrespective of the distance covered or the
number of vehicles or vehicle-hours that are operated at a particular moment.

Fixed costs apply before any service has been rendered and they remain fairly constant
for a given capacity. However, if there is a change in capacity, the fixed costs will change
(e.g., when buildings or vehicles are purchased or sold, or when vehicles are replaced by
others with a different carrying capacity). Fixed costs therefore tend to change in the long
term. In road transport, fixed costs are divided into two groups. First, there are costs
relating to vehicles (i.e., standing costs) such as interest on capital, depreciation,
licences and insurance. Second, there are costs that do not relate directly to vehicles, but
have to be incurred to render transport services. These costs include fixed salaries, the
capital cost of buildings, property tax and so forth. These costs are known as overheads
and are directly related to the size of the enterprise. We see, then, that fixed costs are

12
 TRL3706/201/1/2017

based on the use of indivisible assets. These costs cannot be ascribed to specific
services, trips or routes on the basis of physical measurement. The implication of this
indivisibility for costing is that fixed costs have to be allocated to a specific service, trip or
route.

Variable costs, unlike fixed costs, vary as output changes (measured in terms of the
number of kilometres, ton-kilometres or vehicle operating hours). These costs occur
repeatedly and are measurable for each output unit, and they increase or decrease as
output units increase or decrease. If the intensity of vehicle use remains the same and
the vehicle is operated under approximately the same conditions, the variable costs will
vary more or less in proportion to the change in output units. Typical variable costs in
road transport are the running costs of vehicles in terms of fuel, tyres and maintenance.
Since variable costs vary according to the output units of a road transport enterprise,
they can be measured fairly accurately and readily allocated to even minor output units.
This implies that it is a fairly simple matter to calculate variable costs for individual
services or trips.

Average costs are total costs divided by the number of output units. For the purposes of
costing, the total cost of a transport enterprise is of little importance. Costing requires that
cost be linked to output in order to calculate the unit cost of each output. Calculating
average costs is therefore essential. The average cost per unit of output (e.g., per
kilometre) facilitates the calculation of the costs of the service or trip which consists of a
number of those units.

Marginal costs are the additional costs incurred to increase production by one unit. This
is a theoretical concept to describe the cost of a minor input increase (e.g., the additional
cost of covering an additional kilometre). A single kilometre, ton-kilometre, passenger
kilometre or vehicle-hour is rarely added to the cost of a service. Hence, the concepts of
incremental and avoidable costs have greater relevance for costing than marginal costs.
Both costs derive from the theoretical principle of marginal costs.

13
 TRL3706/201/1/2017

Incremental costs
Whereas the concept of marginal costs offers a theoretical concept to describe the
additional cost involved when there is a unit increase in output, the concept of
incremental costs is used for larger increases in output, such as the costs involved in an
additional trip or trips or the introduction of a new service.

Incremental costs represent the additional costs incurred when a transport service is
expanded. Incremental costing is done to determine the additional costs of service
changes.

Avoidable costs
Unlike incremental costs, which are calculated to determine the additional costs of a
service change, avoidable costs are costs that can be avoided when there is no service
expansion or when part of the service is suspended. The avoidable cost of a single trip
will include only variable costs, whereas the avoidable costs of a particular contract will
also include fixed costs (e.g., vehicle-related fixed costs). Do not confuse the concept of
avoidable costs with costs that can be saved by providing a more efficient service.

Avoidable cost is defined as the sum of those outlays which could be saved if provision
of the service were to be reduced to some specified level. This cost is the difference
between the total outlays for operating the transport system at the present and
contemplated scales of service provision.

Common costs
These costs arise mainly from the indivisibility of the production factors. Owing to
economic considerations (e.g., economies of density and economies of scope), certain
assets and human resources are not used exclusively for specific services. As a result,
common costs cannot be directly ascribed to a particular output unit (trip, kilometre or
vehicle-hour). Overheads are, for example, common to all the services, and the standing
costs of a vehicle are common to all the trips or services for which the vehicle is used.

14
 TRL3706/201/1/2017

Joint costs arise when the production of a particular product or service unavoidably
leads to the production of another product (by-product) or service in a fixed relationship.
In road transport (as in most transport modes except pipelines), a forward trip necessarily
requires a return trip. When the cost of the forward trip is calculated, the cost of the
return trip must be taken into account as well.

The total cost of a road transport enterprise consists of certain fixed and certain variable
cost components. Cost structure generally refers to the typical ratio of fixed components
to variable components of total cost. Compared with other modes of transport, road
transport is characterised by a relatively high ratio of variable costs to total cost. The
main reason is that road transport is not self-supplying in terms of road infrastructure,
since that is provided and maintained by the authorities. Road carriers contribute only
indirectly to the development and maintenance of roads by paying vehicle licence fees,
toll fees and fuel tax. A large portion of this indirect contribution to road provision is a
variable cost for the operator, which makes the ratio of variable cost to total cost even
higher. Another reason for this relatively high ratio of variable cost to total cost is that
road vehicles are relatively cheap compared to other modes of transport.

4. EXAMINATION INFORMATION

4.1 Examination admission

Submission of compulsory Assignment 01 will provide you with admission to the

examination. However, both the compulsory assignments will count towards your
semester mark, which will contribute towards your final mark.

Composition of semester mark

Compulsory Assignment 01 50%
Compulsory Assignment 02 50%
Total Semester Mark 100%

15
 TRL3706/201/1/2017

Composition of final mark

Semester Mark 20%
Examination Mark 80%
Final Mark 100%

You have to obtain a minimum of 40% in the examination, regardless of your semester
mark. The average of the semester mark and the examination mark must be at least 50%
for you to pass the module.

EXAMPLE:
If your semester mark is 55% and your examination mark is 60%, your final mark will be
calculated as follows:
0,2 x 55% = 11% 0,8 x 60% = 48%
Your final mark is, therefore, 59% (11% + 48%).
This is higher than 50%, which means that you passed the module.

4.2 Examination period

This module is offered as a semester module. This means:

 If you are registered in the first semester, you will write the examination in
May/June 2017.
 If you are registered in the second semester, you will write the examination in
October/November 2017.

4.3 Examination date

The date for the exam will be communicated to you by the Examination Department.

4.4 Previous examination papers

16
 TRL3706/201/1/2017

Examination papers are available on myUnisa, under Official Study Material to help you
with your preparations with the upcoming examination.

4.5 Format of the examination paper

The Road Transport examination paper consists of a two-hour written examination,
counting 70 marks. The paper consists of Section A with short questions and Section
B with longer written questions.
The TWO-HOUR examination paper will consist of the following format:
SECTION A
Answer ALL the questions in this section

Question Type Marks Total marks

Question 1 Compulsory short questions 20 20

SECTION B
Answer any TWO of the three questions in this section
Question Type Marks Total marks
Question 2 Written questions 25
Question 3 Written questions 25 50
Question 4 Written questions 25
70

Section A comprises short questions totalling 20 marks. You must answer ALL the
questions in this section.

Section B consists of three (3) questions, of which you must answer any two (2)
questions. Each question will consist of long and short questions. Short questions will
include name, define and describe type questions; long questions will include discuss
and explain type questions. These questions can be asked from a combination of study
units.

Please note that only the first two (2) questions will be marked, if you answer all
three (3) questions in this section. If you do, however, answer all three (3) questions,

17
 TRL3706/201/1/2017

please ensure that you cross out the question that you do not want to be marked. Failing
to do so may result in you losing marks.

4.6 Guidelines for the examination

For the examination questions you can expect mostly theoretical questions.
Please prepare in advance for the exam. Where required, you will have to apply the
information given to you in the examination paper practically.

You will need to know your facts well and write them in an organised and logical way.
Make sure that your facts are relevant to the question! Remember that it is not the length
(quantity) of your answer that counts, but the quality of the information that you
provide. It is therefore recommended that you read through all the questions carefully
and consider the mark allocation for each question before answering. This will help
you to structure your answers correctly, since the mark allocation indicates how much
information to include in your answer. For example, if the question is worth five marks, it
means that you should provide five valid points or facts in your answer.

The examination paper consists of questions from all study units. In order to pass the
exam, it is advisable to study the whole study guide and not only your assignments.

Remember to read through your study material consistently and to go through all the
activities listed at the end of each study unit. Also work carefully through the
questions in your compulsory written assignments. All these activities and
assignment questions are valuable for revision purposes.

18
 TRL3706/201/1/2017

4.7 Guidelines for answering an examination paper

Please follow these useful guidelines when you write your examination:

1. When you receive your examination question paper, the first thing that you
should do is to take two (2) minutes to read through the paper very carefully.
2. Please make sure that your handwriting is neat and easy to read. Make full
use of your answer book; you will have enough space to write all you need.
3. Do not re-write the question in your answer. It is not necessary and you are
wasting your own time. Avoid doing this at all times.
4. When answering the short questions, look at how many marks are being
awarded for the answer. This is an indication of how many facts your answer
should contain. Do not write half a page in an answer to a question that counts
only three (3) marks, for example. You will not benefit in any way if you do
this. If the question counts three (3) marks, that is the maximum mark that you
can achieve for that particular question.
5. When you have to name or list three (3) facts, for example, you are allowed to
write your answer in the form of bullet points.
6. When asked to name and describe something, you have to name a fact and
give a brief discussion/description/explanation of that particular fact.
7. When asked to explain, define, describe or discuss something, you have to
make use of full sentences in your answer. Once again, make sure that you
are aware of how many marks the question is worth so that you know how
many facts to give.
8. Avoid repeating yourself unnecessarily, as this wastes time.
9. Make sure that you discuss the correct facts in a logical manner in order to
achieve the highest possible mark.
10. Please also ensure that you fill in your personal details correctly (e.g., your
student number and course code) on the front cover of the examination script.

©
Unisa 2017

19
 TRL3706/201/1/2017

In terms of the Copyright Act 98 of 1978, no part of this material may be

reproduced, be stored in a retrieval system, be transmitted or used in any form or
be published, redistributed or screened by any means (electronic, mechanical,
photocopying, recording or otherwise) without the prior written permission of
UNISA. However, permission to use in these ways any material in this work that
is derived from other sources must be obtained from the original sources.

20
 TRL3706/102/1/2021

Tutorial Letter 102/1/2021

ROAD TRANSPORT

TRL3706

Department Applied Management

This tutorial letter contains important information

about your module.

BARCODE

Open Rubric
 CONTENTS
Page

1 INTRODUCTION .......................................................................................................................... 3
2 PURPOSE OF TUTORIAL LETTER ............................................................................................. 3
3 FORMAT OF THE EXAM ............................................................................................................. 3
4 WHERE TO FIND THE EXAMINATION PAPER .......................................................................... 3
4.1 Steps to follow to access to the examination paper ....................................................................... 4
5 HOW TO SUBMIT YOUR ANSWER FILE .................................................................................... 4
6 REVISED ASSIGNMENT DATES………………………………………………………………………..5
7 CONCLUSION.............................................................................................................................. 6
ADDENDUM: ASSIGNMENTS FOR 2021 ............................................................................................... 6

2
 TRL3706/102/1/2021

1 INTRODUCTION

Dear Student

The COVID-19 pandemic has led to the National State of Disaster requiring social distancing as
a means to avoid its spread. To this end, Unisa's management decided that there will be no
face-to-face contact activities during 2021, including examinations. The examination of this
module, like all other modules at Unisa, will be conducted online.

2 PURPOSE OF TUTORIAL LETTER

This tutorial letter aims to provide you with the changes to the format of the examinations for the
October/November exam.

3 FORMAT OF THE EXAM

The module will write exams during October/November 2021 only. Due to the COVID-19
pandemic, the examination will be conducted online as follows:

1. The examination will be conducted as a take-home examination based on an

examination question paper.

2. The examination will be managed on the myUnisa platform.

3. The date of the examination will be announced as soon as it becomes available.

4. The duration of the examination will be 3 hours.

4 WHERE TO FIND THE EXAMINATION PAPER

The examination question paper will be posted on myUnisa at the start of the session on the
day of the examination. A new examination question paper download tool will be available on
the myUnisa front page. Log in with your student number and myUnisa password.

Claim your myUnisa password before the start of the examination if you have not done so
already.
3
4.1 Steps to follow to access the examination paper

On the day of the examination, do the following:

1. Fifteen minutes before the examination commences, access the myUnisa

(https://my.unisa.ac.za/portal) site.

2. Please find the link login and download my Exam Question Paper for
October/November 2021 on the myUnisa landing page and login with your student
number and password.

5 HOW TO SUBMIT YOUR ANSWER FILE

Follow these steps to submit your take-home answer file.

1. Access myUnisa at https://my.unisa.ac.za/portal and log in using your student number

and myUnisa password

2. Click on the "myAdmin" tab in the top navigation

3. In the "Assessments" submenu, click on the "Assessment Info" tool in the drop-down
list

•A list of all available assessments will display

•Locate the section for UNISA summative assessments at the bottom of the list

•Find the corresponding portfolio number for your module

•Click on the Submit link in the Action column and follow the steps described below.

Step 1: Load the answer file from your PC to myUnisa

•Click on the Browse button next to File Name

•In the Choose File dialog box, select the file you want to upload, and then click OK

•Select the correct file format from the File Format drop-down list. Most modules only
allow PDF formatted files to be uploaded.

•Click on the Continue button.

4
 TRL3706/102/1/2021

Step 2: Verify the file details for final submission of your answer file

Use this step to verify that you are uploading the correct answer file to the correct course
and assessment number.

•Click on the Continue button to submit your answer file. If you do not click Continue,
no submission action will take place.

•Large files will take longer to upload than smaller files. Please be patient after you've
clicked Continue.

•If the wrong details, e.g. file name, appear on the screen, click Back to restart the
file upload process.

Step 3: Assessment submission report

This is your proof that your take-home answer file was submitted. It is advisable to
print this page or make a screen capture for record purposes. A copy of this page will
also be emailed to your myLife email account.

6 REVISED ASSIGNMENT DATES

All the assignments are allocated unique numbers. Please ensure that you capture the
correct unique number for note that the assignments are the same for both semester 1
and 2. However, the unique numbers are different. Make sure that you capture the unique
number for your semester.

Semester 1 &2 Unique number Due date

Assignment 01 790433 19 April 2021
Assignment 02 801955 5 July 2021

Please note: No extension will be granted for the submission of assignments.

5
7 CONCLUSION

Do not hesitate to contact us via email if you are experiencing problems with this tutorial letter's
content or with any academic aspect of the module.

We wish you all the best in the examination.

Mrs J Rocha – Lecturer for TRL3706

DEPARTMENT APPLIED MANAGEMENT

ADDENDUM: ASSIGNMENTS FOR 2021

FIRST & SECOND SEMESTERS: ASSIGNMENT 01

Due date Unique number Scope
19 April 2021 790433 All the learning units

DBA CC is a transport company that provides both freight and passenger road
transport services. Describe the purpose of activity-based costing and how it
applies to costing transport services. (20)

TOTAL [20]

FIRS & SECOND SEMESTERS: ASSIGNMENT 02

Due date Unique number Scope
5 July 2021 801955 All the learning units

Suppose that you are a road transport expert. Discuss the practical measures that
you will introduce to improve efficiency in a transport company. (20)

©
Unisa 2021
6
 TRL3706/201/1/2022

Tutorial Letter 201/1/2022

ROAD TRANSPORT

TRL3706

Semesters 1
Department of Applied Management

This tutorial letter contains important information

about your module.

Bar code

1
 TRL3706/201/1/2022

CONTENTS

Page No.

1. GENERAL INFORMATION………………………………………………………..… 7

2. FEEDBACK ON COMPULSORY ASSIGNMENTS 01 & 02……………………... 8

3. EXAMINATION INFORMATION …………………………………............ 15

2
 TRL3706/201/1/2022

1. GENERAL INFORMATION

Dear Student

I hope that you found your studies exciting and informative. We are nearing the end of the
semester, and soon it will be time for the examination! Please read through this tutorial
letter carefully as it contains feedback on compulsory Assignments 01 and 02 as well
as essential guidelines for your examination.

I wish you all the best in your preparation for the examination.

Regards

Mrs J Rocha
LECTURER: Road Transport Economics and Logistics

My contact details are:

E-mail: Dsantjm@unisa.ac.za

Your semester mark is derived from the marks you obtain for your assignments.
Without a semester mark, you will not be allowed to write the examination. Please check
with the Assignment Department (assign@unisa.ac.za), either at your regional office or at
the Muckleneuk campus (Pretoria), whether your assignments were received and marked;
alternatively, consult your myUnisa website.

If you have administrative queries, please contact Unisa by any of the following means:

• Unisa website (http://www.unisa.ac.za & http://mobi.unisa.ac.za)

3
 TRL3706/201/1/2022

All study-related information is now available on the new Unisa corporate website in both
web and mobi formats.
• myUnisa (https://my.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda)
You can access your own information via the myUnisa website or mobi site.
• E-mail (info@unisa.ac.za)
You can send an e-mail to info@unisa.ac.za for information on how to contact Unisa via
e-mail.
• SMS (32695) – (only for students in South Africa)
You may send an SMS to 32695 for more information on how to contact Unisa via SMS.
You will receive an auto-response SMS with the various SMS options. The cost per SMS
is R1,00.

Remember that your semester mark will contribute 20% to your final mark, while your
examination will count for 80%.

4
 TRL3706/201/1/2022

2. FEEDBACK ON COMPULSORY ASSIGNMENTS 1 AND 2

Assignments 01 and 02

Assignment 01

Broadly discuss the interrelationship between the micro, market and macro environment
within which transport companies operate. [20]

Please refer to Learning Unit 2, from page 11 of your Study Guide, for the answer to this
assignment.

• Introduction: A short introduction about the transport in general, road transport, the
different environment, differences and similarities between road transport and other
modes of transport

• Discussion (body): You should have each road transport environment in detail. The
inclusion of outside sources was also welcome

• Conclusion: A short and brief summary of about one or two paragraphs of what you have
written, with examples and suggestions

Assignment 2

Please refer to Learning Unit 9, from page 115 of your Study Guide, for the answer to this
assignment.

• Introduction: A short introduction about the company, what freight transport is, what
pricing strategy is, etc)

• Discussion (body): You should have first discussed the theory, then applied the theory
into the context of the imaginary company and the theory about these terms/ concepts

5
 TRL3706/201/1/2022

discussed in the book, the types, benefits, challenges, and applicability in a transport
company in detail.

• Conclusion: You should have written a short and brief summary of about one or two
paragrams of what you have written, with examples, suggestions etc.

Please note that the same structure applies for your May/June 2022 exam

3. EXAMINATION INFORMATION

3.1 The Examination: May/June 2022

3.1.1 Format of the examination paper

The exam paper will consist of three compulsory essay type questions of 20, 25 and 25 marks
each:

Question 1 comprises 2 x 10 marks questions (20 Marks);

Question 2 comprises two questions of 15 and 10 marks (25 marks); and
Question 3 comprises 1 question of 25 marks (25 marks).
GRAND TOTAL = 70

3.1.2 Exam time and duration

You will have 15 minutes to download the exam paper, three hours to complete the exam
and 1 extra hour to submit your exam answer file.

N.B.: Please use the 1 extra hour to submit the exam answer file only, not continue writing. If
you wait until the last few minutes to submit your answer file, you may risk finding the system
clogged and, therefore, not being able to submit your answer file.

3.1.3 Examination announcement

6
 TRL3706/201/1/2022

Please read all the announcements posted on the module and exam platforms, including the
examination rules, QR Code, Mooc exercise, the invigilator App etc.

3.1.4 Contact details

These are the contact details you can use should you experience technical challenges during
the exam:

➢ Invigilator App

The technical helpdesk via WhatsApp on 073 505 8273.

➢ Other technical challenges

College Exam Mailbox:
Email: CEMSExams@unisa.ac.za
Ms P Ngcobo
College Information Management Coordinator
Landline: +27 (0)12 429 8650

3.2 Examination admission

Submission of your compulsory Assignment 01 will provide you with admission to the
examination. However, both the compulsory assignments will count towards your
semester mark, which will contribute to your final mark.

Composition of semester mark

Compulsory Assignment 01 50%
Compulsory Assignment 02 50%
Total Semester Mark 100%

7
 TRL3706/201/1/2022

Composition of final mark

Semester Mark 20%
Examination Mark 80%
Final Mark 100%

You must obtain a minimum of 40% in the examination, regardless of your semester mark.
The average of the semester mark and the examination mark must be at least 50% for you
to pass the module.

EXAMPLE:
If your semester mark is 55% and your examination mark is 60%, your final mark will be
calculated as follows:
0,2 x 55% = 11% 0,8 x 60% = 48%
Your final mark is therefore 59% (11% + 48%).
This is higher than 50%, which means that you have passed the module.

3.3 Examination period

This module is offered as a semester module. This semester will write exams in May/June
2022.

3.4 Examination date

The date for the was communicated to you by the Examination Department.

3.4 Format of the examination paper

The Road Transport examination paper consists of a three-hour written examination,
ONLINE, counting 70 marks. The paper comprises three essay-type questions as follows:

Answer ALL the questions

8
 TRL3706/201/1/2022

Question Type Marks Total

Question 1 Essay type question 20 20

Question 2 Essay type question 20 20

Question 3 Essay type question 30 30

GRAND TOTAL 70

3.6 Guidelines for the examination

For the examination, you can expect theoretical application essay type questions.
This means that when you answer such questions, you need to apply the theory into
a practical scenario according to the questions, not just summarise the theory.
There will be NO calculation questions. Please prepare in advance for the exam.

You will need to know your facts well and write them in an organised and logical way. Make
sure that your facts are relevant to the question! Remember that it is not the length
(quantity) of your answer that counts but the quality of the information that you provide.
It is therefore recommended that you read through all the questions carefully and consider
the mark allocation for each question before answering. This will help you to structure
your answers correctly since the mark allocation indicates how much information to include
in your answer. For example, if the question is worth ten marks, it means that you should
provide ten valid points or facts in your answer.

The examination paper comprises questions from all learning units. In order to pass the
exam, it is advisable to study the whole study guide and not only your assignments.

Remember to read through your study material consistently and go through all the activities
listed at the end of each learning unit.

3.7 Guidelines for answering an examination paper

9
 TRL3706/201/1/2022

Please note the following for when you write your examination:

1. You will be assessed based on the application of the theory, not on content only.
Therefore, and as previously indicated, please do not copy and pastes directly
from the study guide or anywhere else. Instead, answer the questions in your
own words and in your own voice by interpreting what you have read.
2. Write neat, simple everyday English
3. Also, make sure you write enough facts to warrant a good mark; each valid fact
is worth a mark, so avoid writing one fact in one very long paragraph and expect
many marks
4. It is not only about the number of pages that matter; it is also the content and
application showing that you understand the work that counts the most.
5. When you get your examination question paper, the first thing that you should
do is to take a few minutes to read through the question paper very carefully.
6. If you handwrite your answers, please ensure that your handwriting is neat
and easy to read so the markers can easily understand what you wrote.
7. You do not need to re-write the question in your answer to save time, but
always indicate the number of questions.
8. Please do not write your essay-type answer in bullet points.
9. When asked to explain, define, describe or discuss something, you must
please use full sentences in your answer. Once again, make sure that you know
how many marks the question is worth so that you know how many facts to give.
10. Avoid repeating yourself unnecessarily, as this wastes time.
11. Make sure that you discuss the correct facts in a logical manner in order to
achieve the highest mark possible.
12. Please also ensure that you fill in your details correctly (e.g. your student
number and course code)
13. When using sources other than the study guide, make sure you reference them
correctly with citations, page numbers on the citations and a reference list so
you can get marks for what you wrote. Please refer to the attached here Harvard
reference guide Unisa uses.

10
 TRL3706/201/1/2022

Referencing source
material for CEMS March 2014.doc

14. Remember to sign the declaration form provided at the bottom of the exam
paper and paste it into your examination script.

Unisa 2022

In terms of the Copyright Act 98 of 1978 no part of this material may be

reproduced, be stored in a retrieval system, be transmitted or used in any form or
be published, redistributed or screened by any means (electronic, mechanical,
photocopying, recording or otherwise) without the prior written permission of
UNISA. However, permission to use in these ways any material in this work that is
derived from other sources must be obtained from the original sources.

11
 TRL3706/201/2/2020

Tutorial Letter 201/2/2020

ROAD TRANSPORT

TRL3706

Semester module
Department of Applied Management

This tutorial letter contains important information

about your module.

Bar code

1
 TRL3706/201/2/2020

CONTENTS

Page No.
1. myUnisa………………………………………………………………………………... 4

2. GENERAL INFORMATION………………………………………………………..… 7

3. FEEDBACK ON COMPULSORY ASSIGNMENTS 01 & 02……………………... 8

3.1 Feedback on compulsory Assignment 01……………………………………… 9
3.2 Feedback on compulsory Assignment 02……………………………………… 11

4. INFORMATION ON THE EXAMINATION …………………………………............13

4.1 Examination admission …………………………………………………..……. 13
4.2 Examination period ………………………………………………………......... 14
4.3 Examination date ………………………………………………………..…...… 14
4.4 Previous examination papers ……………………………………………….… 14
4.5 New format of the examination paper ……………………………………….. 14
4.6 Guidelines for the examination ……………………………………………….. 15
4.7 Guidelines for answering an examination paper ……………………………. 18

2
 TRL3706/201/2/2020

Dear Student

I hope that you are finding your studies interesting and informative. We are nearing the
end of the semester and soon it will be time for the examination! Please read through this
tutorial letter carefully as it contains feedback on compulsory Assignments 01 and 02
as well as important guidelines for your examination.

You are welcome to contact me, using the contact details below, if you have any academic
queries or wish to make an appointment to see me. Our Physical address is the
Department of Applied Management, University of South Africa, Muckleneuk. Office:
Samuel Pauw Building 5th floor.

My contact details are:

Tel:(012) 433 4718
E-mail: Dsantjm@unisa.ac.za

If you are not yet a member of Unisa’s online learning community myUnisa, please
register to become a member as soon as possible! I use this website to communicate
important announcements during the semester. myUnisa will give you access to all the
online study material for the module. Remember that you can use the myUnisa
Discussion Forum to ask me any questions relating to the content of this module that you
do not fully understand. It also allows you to discuss difficult topics with your fellow
students.

I hope that you are enjoying your studies, and I wish you all the best in your preparation
for the examination.

Kind regards

Mr S Baloyi
3
 TRL3706/201/2/2020

LECTURER: Road Transport and Logistics

1. myUnisa

What is myUnisa?

myUnisa is a secure website for registered Unisa students, which will give you direct
access to important information, such as course information, and will allow you to update
your personal information on the Unisa student system. You will also be able to join online
discussion forums, submit your assignments and access a number of other resources.

How do I become a myUnisa user?

After receiving confirmation from the University that you are a registered Unisa student,
you must do the following to become part of this innovative learning community:

• Claim your myLife e-mail account before you join myUnisa.

• Go to http://my.unisa.ac.za and click on the “Join myUnisa” link.

• Complete the verification process.

(Please read ALL the instructions on the screen.)

Why is it important to become a myUnisa user?

myUnisa will provide you with 24-hour access to your information and learning resources.
It will also allow you to become part of an online learning community, which means that
you will be able to interact with your lecturers and fellow students.

What does it cost to join myUnisa?

myUnisa and myLife are free to all registered Unisa students. If you do not have your own
internet access, however, you may need to visit an internet cafe, library or learning centre
in your area. These centres provide access to the internet for a small fee.

4
 TRL3706/201/2/2020

I’ve now registered on myUnisa. How do I login to myUnisa?

Go to http://my.unisa.ac.za, enter your student number in the field labelled “student no”
and enter the password you created during the joining procedure. Do not confuse this
password with the myLife password you will be using for your e-mail account.

Who should I call if I have a problem with myUnisa?

You are welcome to contact Unisa at myUnisaHelp@unisa.ac.za if you have any problems
with myUnisa. Please remember to include your full names, student number and a brief
summary of your problem in the e-mail.

➢ myLife e-mail account

How do I claim my myLife e-mail account?

As a registered Unisa student, you already have this e-mail account. Please note that you
need to claim your myLife e-mail box if you wish to receive any e-mail communication from
Unisa.

• Go to myUnisa at http://my.unisa.ac.za and click on the “Claim myLife e-mail” link.

• Provide us with your details by completing the e-form on the screen. This is done for
verification purposes.

• Receive your myLife address and password.

• Access your e-mail account.

Check your myLife e-mail frequently, as it will be your responsibility to manage your myLife
e-mail account. Please note that your myLife e-mail address will be the only official means
of electronic communication between Unisa and you. Should you wish to keep/use an
existing e-mail account, you will need to forward or redirect your mail from your myLife
account to your preferred e-mail address.

Contact Unisa at myLifeHelp@unisa.ac.za, if you encounter any problems with your myLife
account.

5
 TRL3706/201/2/2020

How can I access my myLife e-mail account?

myLife is a web-based e-mail service, which means that you can access your e-mail from
anywhere in the world using an internet browser. Use the link http://www.outlook.com, your
myLife ID (studentnumber@mylife.unisa.ac.za) and your password.

What should I do to forward my myLife e-mail account to another account?

If you prefer to use another e-mail account, you can configure your myLife account to
forward e-mails automatically. Please note that the functionality listed here is not available
in all browsers. To use the complete set of features available in the Outlook web
application, you need to use Internet Explorer 7 or Internet Explorer 8. Most features are
also supported in Firefox 3.0.1 on computers running Windows XP, Windows 2003,
Windows Vista, Windows Server 2008 and Windows 7, 8 and 10 operating systems, and
Safari 3.1 on the Mac OS X operating system.

To redirect your myLife e-mail to another e-mail account, please do the following:

• Login to your myLife account (http://outlook.com).

• Click on “Options” (top right-hand corner of the myLife e-mail screen).

• Click on the “Organise your inbox with rules” tab.

• Click on the “New” tab.

• Click on “When the message arrives, and…” on the drop-down list.

• Select the “Apply to all messages” option.

• Click on “Do the following:” on the drop-down list.

• Select the “Redirect the message to…” option.

• In the “To” box, type in the e-mail address you want the mail redirected to.

• Click on “OK”.

• Click on “Save”.

6
 TRL3706/201/2/2020

2. GENERAL INFORMATION

Your semester mark is derived from the marks you obtain for your assignments.
Without a semester mark, you will not be allowed to write the examination. Please check
with the Assignment Department (assign@unisa.ac.za), either at your regional office or at
the Muckleneuk campus (Pretoria), whether your assignments were received and marked;
alternatively, consult your myUnisa website.

If you need more information about your assignments or have other administrative queries,
please contact Unisa by any of the following means:

• Unisa website (http://www.unisa.ac.za & http://mobi.unisa.ac.za)

All study-related information is now available on the new Unisa corporate website in both
web and mobi formats.
• myUnisa (https://my.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda)
You can access your own information via the myUnisa website or mobi site.
• E-mail (info@unisa.ac.za)
You can send an e-mail to info@unisa.ac.za for information on how to contact Unisa via
e-mail.
• SMS (32695) – (only for students in South Africa)
You may send an SMS to 32695 for more information on how to contact Unisa via SMS.
You will receive an auto response SMS with the various SMS options. The cost per SMS
is R1,00.
• Fax (012 429 4150)
You can fax your enquiry to 012 429 4150, whereafter it will be distributed to and
processed by the relevant department.

Remember that your semester mark will contribute 20% to your final mark, while your
examination will count for 80%.

7
 TRL3706/201/2/2020

3. FEEDBACK ON COMPULSORY ASSIGNMENTS

3.1 Feedback on compulsory Assignment 01

NB: These answers are direct extracts from MO001 and serves as a theoretical
guide to help you answer the questions. Each student’s answers are marked
according to his/her own application of the theory.
Copying and pasting is not acceptable when writing your assignments. At this
level we expect you to explain and apply the content of the MO in your own
words.

1ST SEMESTER 2020 Assignment 01

Due date Unique number Scope

17 August 2020 584657 All learning units

You are a road transport expert. Discuss the basic cost concepts of the road transport. (20)

ANSWER (Please refer to learning unit 7, from page 80 of your MO001.)

Activity-based costing (ABC)

Fixed costs are costs that do not change as output changes. In road transport, this means that
these costs remain constant, irrespective of the distance covered or the number of vehicles or
vehicle-hours that are operated at a particular moment.

8
 TRL3706/201/2/2020

Fixed costs apply before any service has been rendered and they remain fairly constant for a
given capacity. However, if there is a change in capacity, the fixed costs will change (e.g., when
buildings or vehicles are purchased or sold, or when vehicles are replaced by others with a
different carrying capacity). Fixed costs therefore tend to change in the long term. In road
transport, fixed costs are divided into two groups. First, there are costs relating to vehicles (i.e.,
standing costs) such as interest on capital, depreciation, licences and insurance. Second, there
are costs that do not relate directly to vehicles, but have to be incurred to render transport
services. These costs include fixed salaries, the capital cost of buildings, property tax and so
forth. These costs are known as overheads and are directly related to the size of the enterprise.
We see, then, that fixed costs are based on the use of indivisible assets. These costs cannot
be ascribed to specific services, trips or routes on the basis of physical measurement. The
implication of this indivisibility for costing is that fixed costs have to be allocated to a specific
service, trip or route.

Variable costs, unlike fixed costs, vary as output changes (measured in terms of the number
of kilometres, ton-kilometres or vehicle operating hours). These costs occur repeatedly and are
measurable for each output unit, and they increase or decrease as output units increase or
decrease. If the intensity of vehicle use remains the same and the vehicle is operated under
approximately the same conditions, the variable costs will vary more or less in proportion to the
change in output units. Typical variable costs in road transport are the running costs of vehicles
in terms of fuel, tyres and maintenance. Since variable costs vary according to the output units
of a road transport enterprise, they can be measured fairly accurately and readily allocated to
even minor output units. This implies that it is a fairly simple matter to calculate variable costs
for individual services or trips.

Average costs are total costs divided by the number of output units. For the purposes of
costing, the total cost of a transport enterprise is of little importance. Costing requires that cost
be linked to output in order to calculate the unit cost of each output. Calculating average costs
is therefore essential. The average cost per unit of output (e.g., per kilometre) facilitates the
calculation of the costs of the service or trip which consists of a number of those units.

9
 TRL3706/201/2/2020

Marginal costs are the additional costs incurred to increase production by one unit. This is a
theoretical concept to describe the cost of a minor input increase (e.g., the additional cost of
covering an additional kilometre). A single kilometre, ton-kilometre, passenger kilometre or
vehicle-hour is rarely added to the cost of a service. Hence, the concepts of incremental and
avoidable costs have greater relevance for costing than marginal costs. Both costs derive from
the theoretical principle of marginal costs.

Incremental costs
Whereas the concept of marginal costs offers a theoretical concept to describe the additional
cost involved when there is a unit increase in output, the concept of incremental costs is used
for larger increases in output, such as the costs involved in an additional trip or trips or the
introduction of a new service.

Incremental costs represent the additional costs incurred when a transport service is
expanded. Incremental costing is done to determine the additional costs of service changes.

Avoidable costs
Unlike incremental costs, which are calculated to determine the additional costs of a service
change, avoidable costs are costs that can be avoided when there is no service expansion or
when part of the service is suspended. The avoidable cost of a single trip will include only
variable costs, whereas the avoidable costs of a particular contract will also include fixed costs
(e.g., vehicle-related fixed costs). Do not confuse the concept of avoidable costs with costs that
can be saved by providing a more efficient service.

Avoidable cost is defined as the sum of those outlays which could be saved if provision of the
service were to be reduced to some specified level. This cost is the difference between the total
outlays for operating the transport system at the present and contemplated scales of service
provision.

Common costs

10
 TRL3706/201/2/2020

These costs arise mainly from the indivisibility of the production factors. Owing to economic
considerations (e.g., economies of density and economies of scope), certain assets and human
resources are not used exclusively for specific services. As a result, common costs cannot be
directly ascribed to a particular output unit (trip, kilometre or vehicle-hour). Overheads are, for
example, common to all the services, and the standing costs of a vehicle are common to all the
trips or services for which the vehicle is used.

Joint costs arise when the production of a particular product or service unavoidably leads to
the production of another product (by-product) or service in a fixed relationship. In road
transport (as in most transport modes except pipelines), a forward trip necessarily requires a
return trip. When the cost of the forward trip is calculated, the cost of the return trip must be
taken into account as well.

The total cost of a road transport enterprise consists of certain fixed and certain variable cost
components. Cost structure generally refers to the typical ratio of fixed components to variable
components of total cost. Compared with other modes of transport, road transport is
characterised by a relatively high ratio of variable costs to total cost. The main reason is that
road transport is not self-supplying in terms of road infrastructure, since that is provided and
maintained by the authorities. Road carriers contribute only indirectly to the development and
maintenance of roads by paying vehicle licence fees, toll fees and fuel tax. A large portion of
this indirect contribution to road provision is a variable cost for the operator, which makes the
ratio of variable cost to total cost even higher. Another reason for this relatively high ratio of
variable cost to total cost is that road vehicles are relatively cheap compared to other modes of
transport.

3.2 Feedback on compulsory Assignment 02

1st SEMESTER 2020 Assignment 02

11
 TRL3706/201/2/2020

Due Date Unique Number Scope

14 September 2020 565586 All learning units

Suppose you work for the Department Transport. Evaluate the South African transport policy
and the regulations on freight and passenger transport, as described in the White Paper, as
well the current legislation (Refer to Learning units 3 and 5 of your MO001)

Question 1

The White Paper on National Transport Policy of 1996 (South Africa 1996:3) provides the broad
framework for road transport regulation in South Africa. The White Paper states that the vision
for South African transport is of a system which will provide safe, reliable, effective, efficient,
and fully integrated transport operations and infrastructure which will best meet the needs of
freight and passenger customers at improving levels of service and cost in a fashion which
supports government strategies for economic and social development whilst being
environmentally and economically sustainable. In order to progress towards this vision, the
following are broad goals of the national government’s transport policy:

• To support the goals of the Reconstruction and Development Programme (RDP) for
meeting basic needs, growing the economy, developing human resources, and
democratising decision-making
• To enable customers requiring transport for people or goods to access the transport
system in ways which best satisfy their chosen criteria
• To improve the safety, security, reliability, quality, and speed of transporting goods and
people
• To improve South Africa’s competitiveness and that of its transport infrastructure and
operations through greater effectiveness and efficiency to better meet the needs of
different customer groups
• To invest in infrastructure or transport systems in ways which satisfy social, economic, or
strategic investment criteria

12
 TRL3706/201/2/2020

• To achieve the above objectives in a manner which is economically and environmentally

sustainable, and minimises negative side effects

The broad policy principles in the White Paper (South Africa 1996:7–10) suggest that the
various levels of government have different responsibilities for transport in accordance with the
policy of devolution to lower levels of government. Each of the provinces in South Africa is
responsible for formulating its own transport policy with due regard for its own problems and
issues. Provincial policy will be based on national principles and policies as described in the
White Paper of 1996. We therefore concentrate on policy in the national documents. However,
transport operators must familiarise themselves with the content of provincial policies. Specific
principles for the regulation of transport are quoted from the White Paper (South Africa
1996:10):

Regulation is basically a form of intervention by the government, and the intention is to regulate
only where this is essential. Government will apply different forms of regulation to ensure that
its vision and objectives are realised – for example, if it needs to regulate to ensure that desired
services which would not be financially viable are provided. The form of regulation will differ
according to circumstances.

1. Regulation of specific services provided under contract

2. Regulation of monopolies
3. Regulation of the operations of competing operators
(You should provide full detail on the three points above – see Learning unit 3; 3.5)

Question 2 (Learning unit 5)

Although the savings algorithm of Fletcher, Clarke and Wright constitutes a useful
framework for daily scheduling, many practical factors have to be considered in the daily
scheduling of freight. Discuss the guidelines that must be followed to ensure efficient
routing and the scheduling and collection of delivery trips.

13
 TRL3706/201/2/2020

The savings algorithm has only limited use in its present form. Various practical factors and
efficiency principles have to be considered in freight scheduling. However, most computer
programs can be adapted to meet the requirements. The following are the most important
practical factors in daily scheduling:

1. Characteristics of the vehicle fleet and crews

2. Terrain factors
3. Characteristics of goods being transported
4. Requirements of customers and their premises
5. Time available for deliveries
6. Guidelines for routing and scheduling collection and delivery trips
(In your answer you should provide a detailed description on each of the above – see
Learning unit 5 from 5.5.5)

4. EXAMINATION INFORMATION

4.1 Examination admission

Submission of your compulsory Assignment 01 will provide you with admission to the
examination. However, both the compulsory assignments will count towards your
semester mark, which will contribute towards your final mark.

Composition of semester mark

Compulsory Assignment 01 50%
Compulsory Assignment 02 50%
Total Semester Mark 100%

14
 TRL3706/201/2/2020

Composition of final mark

Semester Mark 20%
Examination Mark 80%
Final Mark 100%

You must obtain a minimum of 40% in the examination, regardless of your semester mark.
The average of the semester mark and the examination mark must be at least 50% for you
to pass the module.

EXAMPLE:
If your semester mark is 55% and your examination mark is 60%, your final mark will be
calculated as follows:
0,2 x 55% = 11% 0,8 x 60% = 48%
Your final mark is therefore 59% (11% + 48%).
This is higher than 50%, which means that you have passed the module.

4.2 Examination period

This module is offered as a semester module. This means:

• If you are registered in the first semester, you will write the examination in May/June
2020.
• If you are registered in the second semester, you will write the examination in
October/November 2020.

4.3 Examination date

The date for the exam will be communicated to you by the Examination Department.

4.4 Previous examination papers

15
 TRL3706/201/2/2020

Examination papers are available on myUnisa, under “Official Study Material” to help you
with your preparations with the upcoming examination.

4.5 Format of the examination paper

The Road Transport examination paper consists of a two-hour written examination,
counting for 70 marks. The paper consists of Section A, with short questions, and
Section B, with longer written questions.
The TWO-HOUR examination paper will follow the following format:

SECTION A
Answer ALL the questions in this section

Question Type Marks Total marks

Question 1 Compulsory short questions 20 20

SECTION B
Answer any TWO of the three questions in this section
Question Type Marks Total marks
Question 2 Written questions 25
Question 3 Written questions 25 50
Question 4 Written questions 25
70

Section A comprises short questions totalling 20 marks. You must answer ALL the
questions in this section.

Section B consists of three (3) questions, of which you must answer any two (2)
questions. Each question will consist of long and short questions. Short questions will
include name-define-and-describe-type questions while long questions will include
discuss-and-explain-type questions. These questions can be asked from a combination of
learning units.

16
 TRL3706/201/2/2020

Please note that only the first two (2) questions will be marked if you answer all
three (3) questions in this section. If you do, however, answer all three (3) questions,
please ensure that you cross out the question that you do not want to have marked. Failing
to do so may result in you losing marks.

4.6 Guidelines for the examination

For the examination questions you can expect mostly theoretical questions. Please
prepare in advance for the exam. Where required, you will have to apply the
information given to you in the examination paper practically.

You will need to know your facts well and write them in an organised and logical way. Make
sure that your facts are relevant to the question! Remember that it is not the length
(quantity) of your answer that counts, but the quality of the information that you provide.
It is therefore recommended that you read through all the questions carefully and consider
the mark allocation for each question before answering. This will help you to structure
your answers correctly, since the mark allocation indicates how much information to
include in your answer. For example, if the question is worth five marks, it means that you
should provide five valid points or facts in your answer.

The examination paper consists of questions from all learning units. In order to pass the
exam, it is advisable to study the whole study guide and not only your assignments.

Remember to read through your study material consistently and to go through all the
activities listed at the end of each learning unit. Also work carefully through the
questions in your compulsory written assignments. All these activities and assignment
questions are valuable for revision purposes.

4.7 Guidelines for answering an examination paper

Please follow these useful guidelines when you write your examination:

17
 TRL3706/201/2/2020

1. When you get your examination question paper, the first thing that you should do is
to take two minutes to read through the paper very carefully.

2. Please make sure that your handwriting is neat and easy to read. Make full use of
your answer book; you will have enough space to write all you need.

3. Do not re-write the question in your answer. It is not necessary and you are
wasting your own time. Always avoid doing this.

4. When answering the short questions, look at how many marks are being awarded
for the answer. This is an indication of how many facts your answer should contain.
Do not write half a page in an answer to a question that counts for only three marks,
for example. You will not benefit in any way if you do this. If the question counts for
three marks, that is the maximum mark that you can achieve for that particular
question.

5. When you have to name or list three facts, for example, you are allowed to write
your answer in the form of bullet points.

6. When asked to name and describe something, you must name a fact and give a
brief discussion/description/explanation of that particular fact.

7. When asked to explain, define, describe or discuss something, you must make
use of full sentences in your answer. Once again, make sure that you are aware of
how many marks the question is worth so that you know how many facts to give.

8. Avoid repeating yourself unnecessarily, as this wastes time.

18
 TRL3706/201/2/2020

9. Make sure that you discuss the correct facts in a logical manner in order to
achieve the highest possible mark.

10. Please also ensure that you fill in your personal details correctly (e.g. your student
number and course code) on the front cover of the examination script.

Unisa 2020

19
 TRL3706/201/2/2020

In terms of the Copyright Act 98 of 1978 no part of this material may be

reproduced, be stored in a retrieval system, be transmitted or used in any form or
be published, redistributed or screened by any means (electronic, mechanical,
photocopying, recording or otherwise) without the prior written permission of
UNISA. However, permission to use in these ways any material in this work that is
derived from other sources must be obtained from the original sources.

20
 TRL3706/201/ALL/2021

Tutorial Letter 201/ALL/2021

ROAD TRANSPORT

TRL3706

Semesters 1 and 2 module

Department of Applied Management

This tutorial letter contains important information

about your module.

Bar code

1
 TRL3706/201/ALL/2021

CONTENTS

Page No.
1. myUnisa………………………………………………………………………………... 3

2. GENERAL INFORMATION………………………………………………………..… 7

3. FEEDBACK ON COMPULSORY ASSIGNMENTS 01 & 02……………………... 7

3.1 Feedback on compulsory Assignment 01……………………………………… 8
3.2 Feedback on compulsory Assignment 02……………………………………… 12

4. INFORMATION ON THE EXAMINATION …………………………………............ 15

4.1 Examination admission …………………………………………………..……. 15
4.2 Examination period ………………………………………………………......... 16
4.3 Examination date ………………………………………………………..…...… 16
4.4 Format of the examination paper ……………………………………….. 17
4.5 Guidelines for the examination ……………………………………………….. 17
4.6 Guidelines for answering an examination paper …………………………….18

2
 TRL3706/201/ALL/2021

Dear Student

I hope that you found your studies exciting and informative. We are nearing the end of the
semesters, and soon it will be time for the examination! Please read through this tutorial
letter carefully as it contains feedback on compulsory Assignments 01 and 02 as well
as important guidelines for your examination.

You are welcome to contact me using the contact details below if you have any academic
queries or wish to make an appointment to see me. Our Physical address is the
Department of Applied Management, University of South Africa, Muckleneuk. Office: Anton
Lembede Building 5th floor.

My contact details are:

Tel:(012) 433 4718
E-mail: Dsantjm@unisa.ac.za

I wish you all the best in your preparation for the examination.

Kind regards

Mrs J Rocha
LECTURER: Road Transport

1. myUnisa

What is myUnisa?

myUnisa is a secure website for registered Unisa students, which will give you direct
access to important information, such as course information, and will allow you to update

3
 TRL3706/201/ALL/2021

your personal information on the Unisa student system. You will also be able to join online
discussion forums, submit your assignments and access a number of other resources.

How do I become a myUnisa user?

After receiving confirmation from the University that you are a registered Unisa student,
you must do the following to become part of this innovative learning community:

• Claim your myLife e-mail account before you join myUnisa.

• Go to http://my.unisa.ac.za and click on the “Join myUnisa” link.

• Complete the verification process.

(Please read ALL the instructions on the screen.)

Why is it important to become a myUnisa user?

myUnisa will provide you with 24-hour access to your information and learning resources.
It will also allow you to become part of an online learning community, which means that
you will be able to interact with your lecturers and fellow students.

What does it cost to join myUnisa?

myUnisa and myLife are free to all registered Unisa students. If you do not have your own
internet access, however, you may need to visit an internet cafe, library or learning centre
in your area. These centres provide access to the internet for a small fee.

4
 TRL3706/201/ALL/2021

I’ve now registered on myUnisa. How do I login to myUnisa?

Go to http://my.unisa.ac.za, enter your student number in the field labelled “student no”
and enter the password you created during the joining procedure. Do not confuse this
password with the myLife password you will be using for your e-mail account.

Who should I call if I have a problem with myUnisa?

You are welcome to contact Unisa at myUnisaHelp@unisa.ac.za if you have any problems
with myUnisa. Please remember to include your full names, student number and a brief
summary of your problem in the e-mail.

➢ myLife e-mail account

How do I claim my myLife e-mail account?

As a registered Unisa student, you already have this e-mail account. Please note that you
need to claim your myLife e-mail box if you wish to receive any e-mail communication from
Unisa.

• Go to myUnisa at http://my.unisa.ac.za and click on the “Claim myLife e-mail” link.

• Provide us with your details by completing the e-form on the screen. This is done for
verification purposes.

• Receive your myLife address and password.

• Access your e-mail account.

Check your myLife e-mail frequently, as it will be your responsibility to manage your myLife
e-mail account. Please note that your myLife e-mail address will be the only official means
of electronic communication between Unisa and you. Should you wish to keep/use an
existing e-mail account, you will need to forward or redirect your mail from your myLife
account to your preferred e-mail address.

Contact Unisa at myLifeHelp@unisa.ac.za, if you encounter any problems with your myLife
account.

5
 TRL3706/201/ALL/2021

How can I access my myLife e-mail account?

myLife is a web-based e-mail service, which means that you can access your e-mail from
anywhere in the world using an internet browser. Use the link http://www.outlook.com, your
myLife ID (studentnumber@mylife.unisa.ac.za) and your password.

What should I do to forward my myLife e-mail account to another account?

If you prefer to use another e-mail account, you can configure your myLife account to
forward e-mails automatically. Please note that the functionality listed here is not available
in all browsers. To use the complete set of features available in the Outlook web
application, you need to use Internet Explorer 7 or Internet Explorer 8. Most features are
also supported in Firefox 3.0.1 on computers running Windows XP, Windows 2003,
Windows Vista, Windows Server 2008 and Windows 7, 8 and 10 operating systems, and
Safari 3.1 on the Mac OS X operating system.

To redirect your myLife e-mail to another e-mail account, please do the following:

• Login to your myLife account (http://outlook.com).

• Click on “Options” (top right-hand corner of the myLife e-mail screen).

• Click on the “Organise your inbox with rules” tab.

• Click on the “New” tab.

• Click on “When the message arrives, and…” on the drop-down list.

• Select the “Apply to all messages” option.

• Click on “Do the following:” on the drop-down list.

• Select the “Redirect the message to…” option.

• In the “To” box, type in the e-mail address you want the mail redirected to.

• Click on “OK”.

• Click on “Save”.

6
 TRL3706/201/ALL/2021

2. GENERAL INFORMATION

Your semester mark is derived from the marks you obtain for your assignments.
Without a semester mark, you will not be allowed to write the examination. Please check
with the Assignment Department (assign@unisa.ac.za), either at your regional office or at
the Muckleneuk campus (Pretoria), whether your assignments were received and marked;
alternatively, consult your myUnisa website.

If you have administrative queries, please contact Unisa by any of the following means:

• Unisa website (http://www.unisa.ac.za & http://mobi.unisa.ac.za)

All study-related information is now available on the new Unisa corporate website in both
web and mobi formats.
• myUnisa (https://my.unisa.ac.za/portal & https://my.unisa.ac.za/portal/pda)
You can access your own information via the myUnisa website or mobi site.
• E-mail (info@unisa.ac.za)
You can send an e-mail to info@unisa.ac.za for information on how to contact Unisa via
e-mail.
• SMS (32695) – (only for students in South Africa)
You may send an SMS to 32695 for more information on how to contact Unisa via SMS.
You will receive an auto-response SMS with the various SMS options. The cost per SMS
is R1,00.

Remember that your semester mark will contribute 20% to your final mark, while your
examination will count for 80%.

3. FEEDBACK ON COMPULSORY ASSIGNMENTS

7
 TRL3706/201/ALL/2021

NB: These answers are direct extracts from MO001 and serve as a theoretical guide
to help you answer the questions. Each student’s answers are marked
according to his/her application of the theory. Also, note that:

• Your answers were assessed based on the application of the theory, not on
content only. Cutting or copying, and pasting did not generate any marks for you.
Instead, it pulled your marks down considerably. Make sure you don’t repeat the
same mistakes in the exams.
• Neat, simple English with no spelling error are critical
• Also, although you were given an overall mark, the mark was based on the facts
that you provided. A full-page with no valid facts did not generate any mark.
• It was also not only about the number of pages; it was the content and application
– showing that you understand the work that counted. The same will apply in the
exams.
• Incorrect citations and references made most of you lose marks
• At this level, we expect you to explain and apply the content of the MO in your
own words.

3.1 Feedback on compulsory Assignments

1ST & 2nd SEMESTERS 2021 Assignment 01

Due date Unique number Scope

19 April 2021 790433 All learning units

8
 TRL3706/201/ALL/2021

DBA CC is a transport company that provides both freight and passenger road transport
services. Describe the purpose of activity-based costing and how it applies to costing transport
services. (20)

ANSWER (Please refer to learning unit 8, Section 8.2 of your MO001)

Activity-based costing (ABC)

Fixed costs are costs that do not change as output changes. In road transport, this means that
these costs remain constant, irrespective of the distance covered or the number of vehicles or
vehicle hours that are operated at a particular moment.

Fixed costs apply before any service has been rendered, and they remain fairly constant for a
given capacity. However, if there is a change in capacity, the fixed costs will change (e.g., when
buildings or vehicles are purchased or sold or when vehicles are replaced by others with a
different carrying capacity). Fixed costs, therefore, tend to change in the long term. In road
transport, fixed costs are divided into two groups. First, there are costs relating to vehicles (i.e.,
standing costs) such as interest on capital, depreciation, licences and insurance. Second, there
are costs that do not relate directly to vehicles but have to be incurred to render transport
services. These costs include fixed salaries, the capital cost of buildings, property tax and so
forth. These costs are known as overheads and are directly related to the size of the enterprise.
We see, then, those fixed costs are based on the use of indivisible assets. These costs cannot
be ascribed to specific services, trips or routes on the basis of physical measurement. The
implication of this indivisibility for costing is that fixed costs have to be allocated to a specific
service, trip or route.

Variable costs, unlike fixed costs, vary as output changes (measured in terms of the number
of kilometres, ton-kilometres or vehicle operating hours). These costs occur repeatedly and are
measurable for each output unit, and they increase or decrease as output units increase or
decrease. If the intensity of vehicle use remains the same and the vehicle is operated under
approximately the same conditions, the variable costs will vary more or less in proportion to the

9
 TRL3706/201/ALL/2021

change in output units. Typical variable costs in road transport are the running costs of vehicles
in terms of fuel, tyres and maintenance. Since variable costs vary according to the output units
of a road transport enterprise, they can be measured fairly accurately and readily allocated to
even minor output units. This implies that it is a fairly simple matter to calculate variable costs
for individual services or trips.

Average costs are total costs divided by the number of output units. For the purposes of
costing, the total cost of a transport enterprise is of little importance. Costing requires that cost
be linked to output in order to calculate the unit cost of each output. Calculating average costs
is therefore essential. The average cost per unit of output (e.g., per kilometre) facilitates the
calculation of the costs of the service or trip, which consists of a number of those units.

Marginal costs are the additional costs incurred to increase production by one unit. This is a
theoretical concept to describe the cost of a minor input increase (e.g., the additional cost of
covering an additional kilometre). A single kilometre, ton-kilometre, passenger kilometre or
vehicle-hour is rarely added to the cost of a service. Hence, the concepts of incremental and
avoidable costs have greater relevance for costing than marginal costs. Both costs derive from
the theoretical principle of marginal costs.

Incremental costs
Whereas the concept of marginal costs offers a theoretical concept to describe the additional
cost involved when there is a unit increase in output, the concept of incremental costs is used
for larger increases in output, such as the costs involved in an additional trip or trips or the
introduction of a new service.

Incremental costs represent the additional costs incurred when a transport service is
expanded. Incremental costing is done to determine the additional costs of service changes.

Avoidable costs
Unlike incremental costs, which are calculated to determine the additional costs of a service
change, avoidable costs are costs that can be avoided when there is no service expansion or

10
 TRL3706/201/ALL/2021

when part of the service is suspended. The avoidable cost of a single trip will include only
variable costs, whereas the avoidable costs of a particular contract will also include fixed costs
(e.g., vehicle-related fixed costs). Do not confuse the concept of avoidable costs with costs that
can be saved by providing a more efficient service.

Avoidable cost is defined as the sum of those outlays which could be saved if the provision of
the service were to be reduced to some specified level. This cost is the difference between the
total outlays for operating the transport system at present and contemplated scales of service
provision.

Common costs
These costs arise mainly from the indivisibility of the production factors. Owing to economic
considerations (e.g., economies of density and economies of scope), certain assets and human
resources are not used exclusively for specific services. As a result, common costs cannot be
directly ascribed to a particular output unit (trip, kilometre or vehicle-hour). Overheads are, for
example, common to all the services, and the standing costs of a vehicle are common to all the
trips or services for which the vehicle is used.

Joint costs arise when the production of a particular product or service unavoidably leads to
the production of another product (by-product) or service in a fixed relationship. In road
transport (as in most transport modes except pipelines), a forward trip necessarily requires a
return trip. When the cost of the forward trip is calculated, the cost of the return trip must be
taken into account as well.

The total cost of a road transport enterprise consists of certain fixed and certain variable cost
components. Cost structure generally refers to the typical ratio of fixed components to variable
components of the total cost. Compared with other modes of transport, road transport is
characterised by a relatively high ratio of variable costs to the total cost. The main reason is
that road transport is not self-supplying in terms of road infrastructure, since that is provided
and maintained by the authorities. Road carriers contribute only indirectly to the development
and maintenance of roads by paying vehicle licence fees, toll fees and fuel tax. A large portion

11
 TRL3706/201/ALL/2021

of this indirect contribution to road provision is a variable cost for the operator, which makes the
ratio of variable cost to total cost even higher. Another reason for this relatively high ratio of
variable cost to total cost is that road vehicles are relatively cheap compared to other modes of
transport.

3.2 Feedback on compulsory Assignment 02

1st & 2nd SEMESTERS 2021 Assignment 02

Due Date Unique Number Scope

5 July 2021 801955 All learning units

Suppose that you are a road transport expert. Discuss the practical measures that you will
introduce to improve efficiency in a transport company. (Refer to Learning units 6 of your
MO001)

Users of transport services, whether passengers or consigners, set a number of requirements,

depending on their particular circumstances. They would consider the transport service efficient
if it meets their requirements. However, the service provider has to provide this service within
the framework of the relevant economic principles. There are both operational and user
efficiencies in road transport.

Operational efficiency

Load factor and capacity potential

Load factor is a direct criterion for equipment utilisation and is often used to measure efficiency.
This factor is determined by calculating the ratio of actual freight-ton kilometres to potential
capacity-ton kilometres in the case of goods or actual passenger kilometres to seat kilometres

12
 TRL3706/201/ALL/2021

in the case of passengers. The load factor is, per definition, the utilised output divided by the
available output.

The load factor of different enterprises varies depending on the nature of the service and the
type and density of the commodities (or passengers) transported.

A vehicle may be used on different routes, or it can be used for ad hoc trips. This can be
compared with daily scheduling, for which routes may change every day. Vehicles can operate
on specific routes, and the number of trips the vehicle can handle can then be calculated.

Other efficiency criteria

Criteria to measure efficiency may be divided into the following categories:

▪ cost criteria
▪ cost distribution criteria
▪ human resources criteria

▪ service utilisation criteria

▪ revenue criteria

User efficiency
Service quality is rated in terms of service attributes that coincide with users’ requirements.
Road transport enterprises should constantly strive to improve the quality of their service in
order to keep existing users happy and attract new customers. The most important quality
factors are summarised below. There are various factors that are used to measure whether
road transport services meet these requirements:

Speed
Speed in fact, refers to the total duration or transit time of freight trips (or total journey time in
the case of passengers), including loading, unloading and waiting times. Users prefer a mode
of transport with no or few interruptions that provide door-to-door service.

13
 TRL3706/201/ALL/2021

In passenger transport, total travelling time can be reduced by shorter headways, optimal
routing and the optimal positioning of bus stops or bus terminals, while in freight transport, the
duration of trips depends on transit time between terminals, pickup and delivery times, and the
time consignments spend in warehouses.

Frequency

Frequency refers to the number of trips available on a particular route during a given period. In
freight transport, a high frequency means that less inventory is required. Road transport uses
relatively small vehicle units with relatively short turnaround times.

Capacity

The type of vehicles in use determines the carrying capacity of road transport. In most countries,
carrying capacity is stipulated by law, with restrictions on axle load. Capacity can be adapted
to accommodate particular users’ needs. The adaptability of capacity is one of the primary
reasons why road transporters are able to supply a rapid service.

Safety

In passenger transport, safety is probably the most important consideration for users since
death or injury prevents passengers from achieving the original purpose of their journey. Traffic
safety and violence, and unrest are facets of users’ insistence on safety.

Safety can be improved through internal measures such as driver training, enforcing higher
competency standards, scheduling for outside peak times, and effective vehicle maintenance.

Completeness

“Completeness” refers to the ability of a transport enterprise to deliver door-to-door service. In

passenger transport, operators should do their utmost to provide direct services. If such direct
services are not justified on economic grounds, operators should endeavour to coordinate the
various legs of the journey so that passengers need not wait long for a connection. Transferring
between vehicles or modes of transport is probably one of the most frustrating aspects of
passenger transport.

14
 TRL3706/201/ALL/2021

Low tariffs

Users generally require low, or at least fair, tariffs that are reconcilable with the service that is
provided. Freight transport users look at related costs, such as packaging, insurance and the
availability of goods.

4. EXAMINATION INFORMATION

4.1 Examination admission

Submission of your compulsory Assignment 01 will provide you with admission to the
examination. However, both the compulsory assignments will count towards your
semester mark, which will contribute towards your final mark.

Composition of semester mark

Compulsory Assignment 01 50%
Compulsory Assignment 02 50%
Total Semester Mark 100%

Composition of final mark

Semester Mark 20%
Examination Mark 80%
Final Mark 100%

15
 TRL3706/201/ALL/2021

You must obtain a minimum of 40% in the examination, regardless of your semester mark.
The average of the semester mark and the examination mark must be at least 50% for you
to pass the module.

EXAMPLE:
If your semester mark is 55% and your examination mark is 60%, your final mark will be
calculated as follows:
0,2 x 55% = 11% 0,8 x 60% = 48%
Your final mark is therefore 59% (11% + 48%).
This is higher than 50%, which means that you have passed the module.

4.2 Examination period

This module is offered as a semester module. However, this Tutorial Letter refers to both
Semesters 1 and 2. Both semesters will write exams in September 2021.

4.3 Examination date

The date for the exam will be communicated to you by the Examination Department.

4.4 Format of the examination paper

The Road Transport examination paper consists of a three-hour written examination,
ONLINE, counting 70 marks. The paper comprises three essay-type questions as follows:

Answer ALL the questions

Question Type Marks Total

Question 1 Essay type question 20 20

Question 2 Essay type question 20 20

Question 3 Essay type question 30 30

GRAND TOTAL 70

16
 TRL3706/201/ALL/2021

4.5 Guidelines for the examination

For the examination, you can expect theoretical application essay type questions.
This means that when you answer such questions, you need to apply the theory into
a practical scenario according to the questions, not just summarise the theory.
There will be NO calculation questions. Please prepare in advance for the exam.

You will need to know your facts well and write them in an organised and logical way. Make
sure that your facts are relevant to the question! Remember that it is not the length
(quantity) of your answer that counts but the quality of the information that you provide.
It is therefore recommended that you read through all the questions carefully and consider
the mark allocation for each question before answering. This will help you to structure
your answers correctly since the mark allocation indicates how much information to include
in your answer. For example, if the question is worth ten marks, it means that you should
provide ten valid points or facts in your answer.

The examination paper comprises questions from all learning units. In order to pass the
exam, it is advisable to study the whole study guide and not only your assignments.

Remember to read through your study material consistently and go through all the activities
listed at the end of each learning unit.

4.6 Guidelines for answering an examination paper

Please note the following for when you write your examination:

1. You will be assessed based on the application of the theory, not on content only.
So cutting or copying, and pasting will not generate any marks for you. Instead,
it pulled your marks down considerably. So make sure you don’t repeat the
same mistakes you may have made in the assignments.
2. Neat, simple English with no spelling error are critical
17
 TRL3706/201/ALL/2021

3. Also, make sure you write enough facts to warrant a good mark; each valid fact
is worth a mark, so avoid writing one fact in one very long paragraph and expect
many marks
4. It is not only about the number of pages that matter; it is also the content and
application showing that you understand the work that counts the most.
5. When you get your examination question paper, the first thing that you should
do is to take two minutes to read through the paper very carefully.
6. If you handwrite your answers, please make sure that your handwriting is neat
and easy to read.
7. Do not re-write the question in your answer. It is not necessary, and you will
be wasting your own time if you do so.
8. You are NOT allowed to write your essay-type answer in bullet points.
9. When asked to explain, define, describe or discuss something, you must
make use of full sentences in your answer. Once again, make sure that you are
aware of how many marks the question is worth so that you know how many
facts to give.
10. Avoid repeating yourself unnecessarily, as this wastes time.
11. Make sure that you discuss the correct facts in a logical manner in order to
achieve the highest possible mark.
12. Please also ensure that you fill in your personal details correctly (e.g. your
student number and course code)
13. When using sources other than the study guide, make sure you reference them
correctly with citations, page numbers on the citations and reference list. If you
fail to do so, you will not get marks for what you wrote. Use the Harvard
reference style Unisa uses. It was provided to you under myUnisa
announcements.
14. Remember to sign the declaration form provided at the bottom of the exam
paper and paste it into your examination script.

18
 TRL3706/201/ALL/2021

Unisa 2021

In terms of the Copyright Act 98 of 1978 no part of this material may be

reproduced, be stored in a retrieval system, be transmitted or used in any form or
be published, redistributed or screened by any means (electronic, mechanical,
photocopying, recording or otherwise) without the prior written permission of
UNISA. However, permission to use in these ways any material in this work that is
derived from other sources must be obtained from the original sources.

19
 TRL3709/201/1/2019

Tutorial Letter 201/1/2019

Logistics Strategy
TRL3709

Semester 1

Department: Applied Management

IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.
 CONTENTS

1 INTRODUCTION ..........................................................................................................................3

2 FEEDBACK ON COMPULSORY ASSIGNMENTS 01 AND 02 ....................................................4

2.1 Feedback on compulsory Assignment 01......................................................................................4

2.2 Feedback on compulsory Assignment 02......................................................................................7

3 EXAMINATION INFORMATION ................................................................................................. 12

3.1 Examination admission ............................................................................................................... 12

3.2 Examination period ..................................................................................................................... 13
3.3 Examination date ........................................................................................................................ 13
3.4 Previous examination papers ...................................................................................................... 13
3.5 Format of the examination paper ................................................................................................ 13
3.6 Guidelines for the examination.................................................................................................... 14
3.7 Guidelines for answering an examination paper.......................................................................... 14
 TRL3709/201

1 INTRODUCTION

Dear Student

I hope that you are finding your studies interesting and informative. We are nearing the end of
the semester, and soon it will be time for the examination. Please read through this tutorial letter
carefully as it contains feedback on compulsory Assignments 01 and 02 and important
guidelines for your examination.

You are welcome to contact me at the contact details below if you have any academic queries
or wish to make an appointment to see me. Please note that the Department: Applied
Management are situated in the Samuel Pauw building on main campus.

My contact details are:

Tel: (012) 433 4668
E-mail: loedoc@unisa.ac.za

If you are not a member of Unisa’s online learning community yet, please register to become
a member of myUnisa as soon as possible! I use this website to communicate important
announcements during the semester.

myUnisa will give you access to all the online study material for the module. Remember that you
can use the myUnisa’s discussion forum to discuss difficult topics with your fellow students.

I hope that you are enjoying your studies and I wish you all the best in your preparation for the
examination.

Kind regards,
Mrs Carmen Poole
LECTURER: Logistics Strategy

3
2 FEEDBACK ON COMPULSORY ASSIGNMENTS 01 AND 02

2.1 Feedback on compulsory Assignment 01

DUE DATE 1 April 2019

UNIQUE ASSIGNMENT NUMBER 854464
SCOPE OF ASSIGNMENT Learning Units 1 - 6

Assignment 01 was partially marked.

This means that you were still required to answer all the questions. Even though only one
or two questions were marked, you receive feedback on all the questions. Please note that
feedback does not entail a detailed memo of an exact answer to each question. This
feedback is more on the theory and how you should have approached the questions.

QUESTION 1

1.1 Summarise the decision phases in a supply chain. (6)

 Supply chain strategy or design
 Supply chain planning
 Supply chain operation
Learning Unit 1 (Chapter 1, section 1.4) (Chopra & Meindl, 2016:18)
A full mark is awarded for the decision phase identified, and another full mark is
awarded per decision phase briefly discussed (one sentence is sufficient).

1.2 For a company to achieve strategic fit, it needs to accomplish three (4)
outcomes. Briefly describe these three outcomes.
 The competitive strategy and all functional strategies must fit together to form a
coordinated overall strategy. Each functional strategy must support other
functional strategies and help a firm reach its competitive strategy goal.
 The different functions in a company must appropriately structure their
processes and resources to be able to execute these strategies successfully.
 The design of the overall supply chain and the role of each stage must be
aligned to support the supply chain strategy.
Learning Unit 2 (Chapter 2, section 2.2) (Chopra & Meindl, 2016:33)
A full mark is awarded for each action provided above. Two marks for the first one.
 TRL3709/201

1.3 There are six drivers of supply chain performance, namely facilities, (10)
inventory, transportation, information, sourcing and pricing. The
components of inventory decisions consist of cycle inventory, safety
inventory, seasonal inventory, level of product availability, and inventory
related metrics. Differentiate between the inventory-related metrics
discussed in Chorpa and Meindl (2016).
 C2C cycle time
 Average inventory
 Inventory turns
 Products with more than a specified number of days of inventory
 Average replenishment batch size
 Average safety inventory
 Seasonal inventory
 Fill rate
 Fraction of time out of stock
 Obsolete inventory
Learning Unit 3 (Chapter 3, section 3.5) (Chopra & Meindl, 2016:63)
Half a mark was awarded for each inventory-related metric identified, and half a
mark awarded for each inventory-related metric briefly discussed.

1.4 Briefly explain distribution networks in practice. (8)

 The ownership structure of the distribution network can have as big an impact
as the type of distribution network.
 It is important to have adaptable distribution networks.
 Product price, commoditization, and criticality affect the type of distribution
system preferred by customers.
 Integrate the internet with the existing physical network.
Learning Unit 4 (Chapter 4, section 4.5 (Chopra & Meindl, 2016:112-113).
Full mark awarded per element identified, and full mark per element explained.

5
1.5 Supply chain network design decisions are classified along four criteria. (4)
Briefly discuss these four criteria.
 Facility role
 Facility location
 Capacity allocation
 Market and supply allocation
Learning Unit 5 (Chapter 5, section 5.1 (Chopra & Meindl, 2016:120).
Half a mark awarded per criteria identified, half a mark per criteria discussed.

1.6 When a company considers whether they should produce/source their (8)
products offshore, they need to take into account the total cost of offshoring.
Evaluate the impact of offshoring on the eight elements of total cost.
 Supplier price
 Should link costs from direct materials, direct labour, indirect labour,
management, overhead, capital amortization, local taxes, manufacturing
costs, and local regulatory compliance costs.
 Terms
 Costs are affected by net payment terms and volume discounts.
 Delivery costs
 Include in-country transportation, ocean/air freight, destination transport,
and packaging.
 Inventory and warehousing
 Include in-plant inventories, in-plant handling, plant warehouse costs,
supply chain inventories, and supply chain warehousing costs.
 Cost of quality
 Includes cost of validation, cost of performance drop due to poorer quality,
and cost of incremental remedies to combat quality drop.
 Customer duties, value-added tax, local tax incentives
 Cost of risk, procurement staff, broker fees, infrastructure (IT and facilities),
and tooling and mold costs
 Exchange rates trends and their impact on cost
Learning Unit 6 (Chapter 6, section 6.2 (Chopra & Meindl, 2016:156-157).
Half a mark awarded per element identified, half a mark per element discussed.
Full marks for the last three.
[40]
 TRL3709/201

2.2 Feedback on compulsory Assignment 02

DUE DATE 23 April 2019

UNIQUE ASSIGNMENT NUMBER 839118
SCOPE OF ASSIGNMENT Study Units 1 - 10

Assignment 02 was partially marked.

This means that you were still required to answer all the questions. Even though only one
or two questions were marked, you receive feedback on all the questions. Please note that
feedback does not entail a detailed memo of an exact answer to each question. This
feedback is more on the theory and how you should have approached the questions.

On third year level, students may not copy and paste directly; half marks will be awarded for
answers provided exactly as in the textbook.

QUESTION 1

1.1 Local optimisation by different stages of the supply chain or an increase in (25)
information delay, distortion and variability are considered obstacles to
coordination. With this statement in mind, summarise the five obstacles to
coordination in a supply chain.

The summary should be centred around the following five obstacles:

 Incentive obstacles
 Information-processing obstacles
 Operational obstacles
 Pricing obstacles
 Behavioural obstacles

Learning Unit 7 (Chapter 10, section 10.3) (Chopra & Meindl, 2016:264-268)
Roughly five marks per obstacle.

[25]

7
QUESTION 2

Yuppiechef is a business-to-customer (B2C) online shop where customers will

find a wide range of kitchen products. Yuppiechef is revising their transportation
design.
Visit their website (https://www.yuppiechef.com/about-us.htm?ref=footerlink) to
gain a better understanding of the organisation and use the information to
answer the questions below.

(i) Report on the role of Information Technology (IT) in transportation (30)

(ii) Advise Yuppiechef on making transportation decisions in practice.
(Question 2 will be evaluated according to the rubric below.)

The theory to be incorporated into this answer can be found in Learning Unit 8
(Chapter 14, section 14.8, Chopra and Meindl, 2016:439-441). A detailed memo
will not be provided, but you should refer to the rubric below for guidance on how
this question was marked.

[30]
 TRL3709/201

Referencing Referencing was not included. Referencing was included, Minor/technical errors occurred in Referencing was done correctly.
according to the though, errors occurred in text as the referencing.
Harvard method well as in the reference list.

0 1 2 3
Introduction Student did not write an introduction to the Student wrote a short introduction to the Student wrote a comprehensive introduction
question. question, but merely mentioned that the to the question and explained that the report
OR report would cover the role of IT in transport would cover the role of IT in transport or
Student wrote a short introduction to the or making transportation decisions in making transportation decisions in practice.
question, but did not refer to the role of IT in practice. The introduction contained a brief overview of
transport or making transportation decisions both.
in practice.
0 1 2
Content Content did not answer the Student does not understand the Student slightly understands the Student fully understands the role
question; the role of IT in role of IT in transport; a short role of IT in transport; it was of IT in transport; it was discussed
transport was not discussed. discussion was given. briefly explained. in detail.
0-1 2-3 4-5 6-7
Content did not answer the Student does not understand Student slightly understands Student fully understands making
question; making transportation making transportation decisions making transportation decisions transportation decisions in
decisions in practice was not in practice; a short discussion in practice; it was briefly practice; it was discussed in
discussed. was given. explained. detail.
0-2 3-4 5-6 7-8
Application Student did not apply the theory Student incorporated some Student applied most of the Student successfully applied all of
to Yuppiechef. application to Yuppiechef. theory to Yuppiechef. the theory to Yuppiechef.
0 1-2 3-5 6-8
Conclusion Student did not write a conclusion to the Student wrote a short conclusion to the Student wrote a comprehensive conclusion to
question. question but did not succeeded in the question and succeeded in bringing the
successfully bringing the theory and theory and application together successfully.
application together.
0 1 2
Total /30

9
 TRL3709/201

QUESTION 3

3.1 Discuss five ways how the use of a third party can increase the supply (10)
chain surplus.

The discussion should be centred around five of the following:

 Capacity aggregation
 Inventory aggregation
 Transportation aggregation by transportation intermediaries
 Transportation aggregation by storage intermediaries
 Warehousing aggregation
 Procurement aggregation
 Information aggregation
 Receivables aggregation
 Relationship aggregation
 Lower costs and higher quality

Learning Unit 9 (Chapter 15, section 15.2) (Chopra & Meindl, 2016:447-450)
One full mark awarded for naming each way to increase supply chain surplus,
one mark for each discussion.
 TRL3709/201

3.2 Decision makers all over the world have devoted significant attention to (15)
reducing greenhouse gas (GHG) emissions. Analyse the pricing of
emissions.

The analysis should include a short introduction, and then be centred around the
following:
 Cost of administration
 Price volatility
 Emission uncertainty
 New information uncertainty
 Industry competitiveness
 Wealth transfer to energy-exporting countries
 Revenue neutrality

Learning Unit 10 (Chapter 17, section 17.6) (Chopra & Meindl, 2016:518-519).
One to three full marks awarded for an introduction, full mark for identifying each
pricing mechanism, and full mark for explaining each mechanism.

[25]

11
3 EXAMINATION INFORMATION

3.1 Examination admission

Submission of compulsory Assignment 01 will provide you with admission to the exam.
However, both the assignments will count towards your semester mark, which will contribute
towards your final mark.

Composition of Year Mark

Compulsory Assignment 01 50%
Compulsory Assignment 02 50%
Total Semester Mark 100%

Composition of Final Mark

Semester Mark 20%
Examination Mark 80%
Final Mark 100%

You have to obtain a minimum of 40% in the examination, regardless of your semester mark.
The average of the semester mark and the examination mark must be at least 50% for you to
pass the subject.

EXAMPLE:
If your semester mark is 55% and your examination mark is 60%, your final mark will be
calculated as follows:
0,2 x 55% = 11% 0,8 x 60% = 48%

Your final mark is therefore 59% (11% + 48%).

This is higher than 50%, which means that you passed the subject.
 TRL3709/201

3.2 Examination period

This module is offered as a semester module. This means:

 As you are registered in the first semester, you will write the examination in May/June
2019.

3.3 Examination date

The date for the exam will be communicated to you by the Examination Department.

3.4 Previous examination papers

Examination papers are available on myUnisa, under “Official study material” to help you with
your preparations with the upcoming examination.

3.5 Format of the examination paper

The Logistics Strategy examination paper consists of a two-hour written examination counting
70 marks. The paper consists of Section A with short questions and Section B with longer
written questions.

The TWO-HOUR examination paper will consist of the following format:

SECTION A
Answer ALL the questions in this section

Question Type Marks Total Marks

Question 1 Compulsory short questions 20 20
SECTION B
Answer any TWO of the three questions in this section
Question Type Marks Total Marks
Question 2 Written questions 25
Question 3 Written questions 25 50
Question 4 Written questions 25
70

13
3.6 Guidelines for the examination

The examination questions are theoretical, and some questions may include calculations with
much emphasis on short question and essay type of question derived from self-evaluation
questions of each and every study unit in your Logistics Strategy study guide. However,
where required, you will have to apply the information given to you in the examination paper
practically.

You will need to know your facts well and write them in an organised and logical way. Make
sure that your facts are relevant to the question! Remember that it is not the length (quantity) of
your answer that counts, but the quality of the information that you provide. It is, therefore,
recommended that you read through all the questions carefully and consider the mark
allocation for each question before answering. This will help you to structure you answers
correctly, because the mark allocation indicates how much information to include in your
answer. For example, if the question is worth five marks, it means that you should provide five
valid points or facts in your answer.

The examination paper consists of questions from all study units. To pass the exam, it is
advisable to study the whole study guide and self-evaluation questions at the end of each
and every study unit.

Remember to read through your study material consistently and to go through all the activities
listed at the end of each study unit. Also work carefully through the questions in the compulsory
and self-assessment assignments. All these activities and assignment questions are valuable
for revision purposes.

3.7 Guidelines for answering an examination paper

Please follow these useful guidelines when you write your examination:
1. When you get your examination question paper, the first thing that you should do is to take
two (2) minutes to read through the paper very carefully.
2. Do not rewrite the question in your answer. It is not necessary and you are wasting your
time. Avoid doing this at all times.
3. When you answer the short questions, look at how many marks are being awarded for
the answer. This is an indication of how many facts your answer should contain. For
example, do not write half a page in an answer to a question that counts only three marks.
 TRL3709/201

You will not benefit in any way if you do this. If the question counts three marks, that is the
maximum mark that you can achieve for that particular question.
4. When you have to name or list three facts, for example, you are allowed to write your
answer in the form of bullet points.
5. When you are asked to name and describe something, you have to name a fact and give
a brief discussion/description/explanation of that particular fact.
6. When you are asked to explain, define, describe or fully discuss something, you have
to make use of full sentences in your answer. Once again, make sure that you are aware
of how many marks the question is worth so that you know how many facts to give.
7. Avoid repeating information, as this wastes time.
8. Make sure that you discuss the correct facts in a logical manner to achieve the highest
possible mark.

©
Unisa 2019

In terms of the Copyright Act 98 of 1978 no part of this material may be reproduced, be
stored in a retrieval system, be transmitted or used in any form or be published,
redistributed or screened by any means (electronic, mechanical, photocopying, recording or
otherwise) without the prior written permission of UNISA. However, permission to use in
these ways any material in this work that is derived from other sources must be obtained
from the original sources.

15