Sheila Raheja School of Business Management & Research

MMS-SEM-IV Final Term Exam (March2018)

Subject: Strategic Sourcing in Supply Management
Duration–3 Hours Maximum Marks–60
Instructions:
 Answer any 6 out of 7 Questions.

Q1. What is sourcing? Explain its advantages and disadvantages.

Q2. Explain Amortization & Apportionment.

Q3. What is negotiation? Explain the different types of Negotiations.

Q4. Explain various factors while rating a vendor.

Q5. Sutlej industries markets domestic mixtures & food processors by the brand name of Sutlej.
The production mix of mixi and food processor is 60:40. The common resources are FHP
motors, cables, switches, paint and two types of blades. There are totally 20 vendors, same
vendors for common resources and different vendors for other resources.
For the mixi, there specific resources such as polystyrene jars, lid, totally 7 types of
blades, printed instruction manual, 4 color printed carton, HMHD bag & a stainless steel cup
with star screws to hold the polystyrene jar or the lid while grinding.
Whereas food processor has polycarbonate jars, 10 types of blades, a lid for the juicer,
FIP body, cables, switches, HMHD bag and a 4 color printed carton.
Out of the above motor is time and again constraint oriented and generally responsible for
slowing the production. The projection for annual requirement is 20000 units of food processors
and correspondingly the mixis. Cost of motor is Rs.2000 each whereas raising the P.O. cost is
Rs.120 at a time. Though Sutlej follows line balancing, the supplier of motors is willing to offer
10% discount in case the total quantity is ordered in one go. Cost of holding is established at 8%
per annum.
Calculate the Economic order quantity, total cost and also the resulting cost if the offer
for the motor is to be accepted. Which procurement strategy must Sutlej apply from above two in
their business?
Q6. Following observations were made in respect of 4 vendors for price, documentation, quality,
on time delivery, and challenges for a period of one year on the basis of number of orders raised
and deliveries made for a precedence order of on time delivery first, price second, quality third,
challenges fourth and documentation last. (Assign weights as per your choice.)
First vendor maintained price for 42 orders over 66 placed, made on time delivery on 100
occasions out of 120, and had quality incidence of 110 acceptances of 100% over 120 and error
free documentation in 105 deliveries over 120. Development and R&D trails of 5 out of 5.
Vendor 2 effected price uniformity on 18 occasions out of 30, on time delivery of 36 over
40, 100% acceptance of 39 over 40, error free documentation of 36 over 40, and no R&D trails
and development compliance for the 3 assigned units.
Vendor 3 maintained a price on 59 occasions out of 82, on time delivery on 116
occasions out of 130, 100% acceptance of 129 deliveries out of 130, and error free
documentation on 120 occasions out of 130. 6 trails and R&D work was completed out of 10
assigned weight.
Of the last vendor 75 orders placed price was carried out for 15, on time delivery of 180
out of 200 deliveries, less than 100% acceptance on 5 occasions out of 200, and 30 deliveries out
of 200 made with erroneous documentation, from the 20 trails, 12 were completed.
Workout the performance number of every vendor & identify the best performance.

Q7. Explain the Terms (Any 2)

a. Capacity Constraints
b. Vertical & Horizontal Integration
c. Line Balancing
d. Process Breakdown
 Sheila Raheja School of Business Management & Research
MMS-SEM-IV Final Term Exam (March2018)
Subject:Strategic Sourcing in Supply Management
Duration–3 Hours Maximum Marks–60
Instructions:
 Answer any 6 out of 7 Questions.

Q1. Explain types of sourcing. (Captive & non-captive)

Q2. Explain Self-certification.

Q3. Explain various factors while rating a vendor.

Q4. Sutlej industries markets domestic mixtures & food processors by the brand name of Sutlej.
The production mix of mixi and food processor is 60:40. The common resources are FHP
motors, cables, switches, paint and two types of blades. There are totally 20 vendors, same
vendors for common resources and different vendors for other resources.
For the mixi, there specific resources such as polystyrene jars, lid, totally 7 types of
blades, printed instruction manual, 4 color printed carton, HMHD bag & a stainless steel cup
with star screws to hold the polystyrene jar or the lid while grinding.
Whereas food processor has polycarbonate jars, 10 types of blades, a lid for the juicer,
FIP body, cables, switches, HMHD bag and a 4 color printed carton.
Out of the above motor is time and again constraint oriented and generally responsible for
slowing the production. The projection for annual requirement is 20000 units of food processors
and correspondingly the mixis. Cost of motor is Rs.2000 each whereas raising the P.O. cost is
Rs.120 at a time. Though Sutlej follows line balancing, the supplier of motors is willing to offer
10% discount in case the total quantity is ordered in one go. Cost of holding is established at 8%
per annum.
Calculate the Economic order quantity, total cost and also the resulting cost if the offer
for the motor is to be accepted. Which procurement strategy must Sutlej apply from above two in
their business?

Q5. State how Outsourcing is a Strategy.

Q6. Following observations were made in respect of 4 vendors for price, documentation, quality,
on time delivery, and challenges for a period of one year on the basis of number of orders raised
and deliveries made for a precedence order of on time delivery first, price second, quality third,
challenges fourth and documentation last. (Assign weights as per your choice.)
First vendor maintained price for 42 orders over 66 placed, made on time delivery on 100
occasions out of 120, and had quality incidence of 110 acceptances of 100% over 120 and error
free documentation in 105 deliveries over 120. Development and R&D trails of 5 out of 5.
Vendor 2 effected price uniformity on 18 occasions out of 30, on time delivery of 36 over
40, 100% acceptance of 39 over 40, error free documentation of 36 over 40, and no R&D trails
and development compliance for the 3 assigned units.
Vendor 3 maintained a price on 59 occasions out of 82, on time delivery on 116
occasions out of 130, 100% acceptance of 129 deliveries out of 130, and error free
documentation on 120 occasions out of 130. 6 trails and R&D work was completed out of 10
assigned weight.
Of the last vendor 75 orders placed price was carried out for 15, on time delivery of 180
out of 200 deliveries, less than 100% acceptance on 5 occasions out of 200, and 30 deliveries out
of 200 made with erroneous documentation, from the 20 trails, 12 were completed.
Workout the performance number of every vendor & identify the best performance.

Q7. Explain the terms (Any 2)

a) De-bottlenecking
b) Preventive Maintenance Outage
c) Competitive Buying
d) Planned & Forced Sourcing
 Sheila Raheja School of Business Management & Research
MMS-SEM-IV Final Term Exam (March2018)
Subject:Strategic Sourcing in Supply Management
Duration–3 Hours Maximum Marks–60
Instructions:
 Answer any 6 out of 7 Questions.

Q1. Explain factors affecting sourcing decisions.

Q2. Following observations were made in respect of 4 vendors for price, documentation, quality,
on time delivery, and challenges for a period of one year on the basis of number of orders raised
and deliveries made for a precedence order of on time delivery first, price second, quality third,
challenges fourth and documentation last. (Assign weights as per your choice.)
First vendor maintained price for 42 orders over 66 placed, made on time delivery on 100
occasions out of 120, and had quality incidence of 110 acceptances of 100% over 120 and error
free documentation in 105 deliveries over 120. Development and R&D trails of 5 out of 5.
Vendor 2 effected price uniformity on 18 occasions out of 30, on time delivery of 36 over
40, 100% acceptance of 39 over 40, error free documentation of 36 over 40, and no R&D trails
and development compliance for the 3 assigned units.
Vendor 3 maintained a price on 59 occasions out of 82, on time delivery on 116
occasions out of 130, 100% acceptance of 129 deliveries out of 130, and error free
documentation on 120 occasions out of 130. 6 trails and R&D work was completed out of 10
assigned weight.
Of the last vendor 75 orders placed price was carried out for 15, on time delivery of 180
out of 200 deliveries, less than 100% acceptance on 5 occasions out of 200, and 30 deliveries out
of 200 made with erroneous documentation, from the 20 trails, 12 were completed.
Workout the performance number of every vendor & identify the best performance.

Q3. Explain Supply Chain Performance Cycle.

Q4. State how Outsourcing is a Strategy.

Q5. What is negotiation? Explain the different types of Negotiations.

Q6. Sutlej industries markets domestic mixtures & food processors by the brand name of Sutlej.
The production mix of mixi and food processor is 60:40. The common resources are FHP
motors, cables, switches, paint and two types of blades. There are totally 20 vendors, same
vendors for common resources and different vendors for other resources.
For the mixi, there specific resources such as polystyrene jars, lid, totally 7 types of
blades, printed instruction manual, 4 color printed carton, HMHD bag & a stainless steel cup
with star screws to hold the polystyrene jar or the lid while grinding.
Whereas food processor has polycarbonate jars, 10 types of blades, a lid for the juicer,
FIP body, cables, switches, HMHD bag and a 4 color printed carton.
Out of the above motor is time and again constraint oriented and generally responsible for
slowing the production. The projection for annual requirement is 20000 units of food processors
and correspondingly the mixis. Cost of motor is Rs.2000 each whereas raising the P.O. cost is
Rs.120 at a time. Though Sutlej follows line balancing, the supplier of motors is willing to offer
10% discount in case the total quantity is ordered in one go. Cost of holding is established at 8%
per annum.
Calculate the Economic order quantity, total cost and also the resulting cost if the offer
for the motor is to be accepted. Which procurement strategy must Sutlej apply from above two in
their business?

Q7. Explain the terms (Any 2)

a. Kitting
b. Theory of Constraints
c. Vertical & Horizontal Integration
d. Line Balancing