SCHOOL OF MANAGEMENT SCIENCES, VARANASI

PDGM SECOND SEMESTER - MODEL TEST PAPER ASSIGNMENT

(MTP-2020)
(BM 2.02: SUPPLY CHAIN & LOGISTICS MANAGEMENT)
Time: 3 Hours. Max. Marks: 100
Note: i) Attempt All Questions.
ii) Do as directed in each of the Sections A, B and C.
iii) The figures in the right-margin indicate marks composition.

SECTION – A

1. Answer briefly the following in about 200 words each:

a) Explain the philosophy of Supply Chain Management.
b) What do you mean by Green Supply Chain Management?
c) Differentiate Third Party Logistics (3PL) with Fourth Party Logistics (4PL) Service Provider.
d) Analyze the utilities of warehousing under SCM?
e) Elucidate the ABC technique of inventory control with example.
f) What do you understand by Multi-modal transportation?
g) Explain the concept of "Cold Chain Operations".

SECTION – B

2. Attempt any TWO of the following:

a) Discuss the concept of outsourcing. How would you (as a purchase manager of hospital) decide various
sourcing strategies for different product categories based on value and criticality matrix?
b) Discuss the evolution of supply chain management concept. Project the utility of SCM in the era of
Globalization and information technology.
c) ‘Concept of JIT is a fancy and idealistic phenomenon.' Critically analyze the statement while discussing
the various types of inventory control techniques.
d) While making packaging and material handling related decisions, what are various factors that a supply
chain manager is supposed to take into consideration?

3. Write explanatory notes on the following:

a) SCOR Model.
b) International Trade Contracts - INCOTERMS.
c) Causes and Remedies of Bullwhip Effect.
d) Lean and Agile SCM.
 SECTION – C

4. Attempt the following:

a) Compare and contrast the supply chains followed by the two food products firms mentioned below:
i. A firm offering a food product targeted at the lower end of the economic pyramid (e.g. Tiger
Biscuit offered by Britannia).
ii. A firm offering a premium food product (e.g. Cadburys chocolates).

b) Compare and contrast issues involved in vehicle routing in the following applications:
i. Employee pick-up for a software service company"
ii. Product delivery to retailers by a soft drink company (the van is also expected to pick-up the empty
glass bottles)"

c) Describe why you think the sales of the following products are predictable or unpredictable:
i. A music CD of a new artist
ii. Light bulbs

Discuss what supply channel characteristics should be for each product in terms of production processes,
transportation services, inventory levels, order processing and vendor responsiveness.

5. Attempt the following:

M/s. Excellent Dashboard Private Ltd. (EDPL) is situated at Gurgaon near Delhi. The company supplies
dashboard assembly as a 4 PL supplier to Maruti Suzuki India Limited (MSIL) since past 3 years. There are
number of components in the dashboard like speedometer, level gauge, etc. EDPL purchases these individual
components from various suppliers and assembles them at their works for onward supply to MSIL.

One of the major components namely "starter switch" is always the problem" Since the EDPL does not observe
any systematic Inventory control methods in their purchasing activities, they just order the quantity as and when
the demand arises. As this product is not available off the shelf, many a times delays occur in arranging for
assembled dashboards to MSIL. This in turn results into a financial loss to EDPL due to penalties imposed by
MSIL as per the agreements towards delays in supply of dashboard assembly.

The information gathered from EDPL shows that annual demand of the item, starter switch is 5000 nos. The unit
price of the item is Rs. 50 each. The inventory carrying cost and ordering cost is 20% and, Rs.40 per order
respectively.

Questions:
1. Explain the role of fourth party logistics in the above case.
2. How EDPL can avoid financial penalties imposed by MSIL?
3. Calculate Economic Order (EOQ) for the item under reference, by using the available information.

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