INSTITUTE OF BUSINESS MANAGEMENT

Assignment No. 03

Course Title: Supply Chain Management Course Code: SCM 605

Faculty: S.M. Arif Azam Section: WE-6642
Student’s Name: Student ID:

Note: Please provide relevant answers against both scenarios. Moreover, this assignment is for compensation of 5
marks against 2nd hourly exam.

Situation 02: If you are customer and need to buy above products based on your own demand so how
much do you buy and When?

My Consumption
Item Monthly Quaterly Yearly
Soda 10L 30L 120L
Milk 60L 180L 720L
Toilet paper 12 Pcs 36 Pcs 144 Pcs
Gas 50L 150L 600L
Cereal 20kg 60kg 240kg
Rice 10kg 30kg 120kg

All item above mention are purchased:

Toilet paper, cereal & rice are purchase from convenient store at once for month, Soda and Gas are
needed almost after 3 or 5 days days while milk are consumed on daily basis.

Soda:

1. What would be the Cost of not having it?

Soda is treated as a luxury food, if we have big pocket can be able to spend on it we go for it. If
not available could not purchase it.

2. Cost of going to the grocery or gas station (time, money), cost of drawing money?

Its will be convenient we purchase it from near by space

3. Cost of holding and storing, lost interest?

From monthly budget the price are allocated to every thing, as food are our need we can lose it.

4. Price discounts if any?

If we get any coupon we will purchase it in more quantity

 5. Brief Some safety measures against uncertainty?
If uncertainty occurs cost of not having is not exist we left it.

Milk
1. What would be the Cost of not having it?

It’s a necessity we can get it in high cost even if supply is low.

2. Cost of going to the grocery or gas station (time, money), cost of drawing money?

We prefer to purchase it from area convenient store. Going specifically for milk is not a good
idea.

3. Cost of holding and storing, lost interest?

We could go for storing it.

4. Price discounts if any?

Can not do bulk buying but its daily consumption item & perishable also,

5. Brief Some safety measures against uncertainty?

Can purchase it in little quantity

Toilet paper, Cereal & Rice

1. What would be the Cost of not having it?

These are staple food so can going to purchase it on any cost

2. Cost of going to the grocery or gas station (time, money), cost of drawing money?

Convenient store are best as we go there we get everything in one place. and get on items.

3. Cost of holding and storing, lost interest?

Storing for a month is the best practice.

4. Price discounts if any?

We can purchase cereal items( luxury food ) more than staple food

5. Brief Some safety measures against uncertainty?

There are no replace for staple food usually have a stoage for 15 days or month after that we
can buy it on high price too.

Gas
1. What would be the Cost of not having it?

It’s the need there is not replace of it

2. Cost of going to the grocery or gas station (time, money), cost of drawing money?

Going to gas will be the best thing in that manner we fueled our vehicle and can purchase
something from convenient store too.

3. Cost of holding and storing, lost interest?

No cost of holding it.

4. Price discounts if any?

We can take offers as it’s the consumable item

5. Brief Some safety measures against uncertainty?

We should stock some fuel so when can uncertainity happen we can able to cope with it.