CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)

Master of Business Administration (MBA)

Post Graduate Diploma in Management (PGDM)
Semester – IV University Examination, April - May 2020
MB806.3 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Date: 30/04/2020, Thursday Time: 10:00 AM to 12:45 PM Maximum Marks: 50

Important Instructions:
1. This Examination Paper is divided into Two Sections / Part.
2. All questions are compulsory in each section.
3. Section I consists of total 5 Questions (Q1 to Q5).
4. Total time for Section I is 165 Minutes. (10:00 AM to 12:45 PM)
5. Maximum marks for Section I is 50 Marks.
Section – I
Q.1 “Supply Chain Decision priorities are different for MTS, MTO and CTO items.” Justify the 10
given statement by explaining each type of items by giving suitable examples. Elaborate and
compare any Three supply chain decisions for each item based on the priorities of an
organisation.
Q.2 Table 1 shows the Demand (Units) of a particular component used to manufacture Mobile 10
Phone and replenishment Lead Time (Days) during last 12 Periods (Months). Assume that
Service Level of 90% is required and manufacturing unit operates for 300 days in a year.
Design a suitable Inventory Management Policy.
Table 1
Month 1 2 3 4 5 6 7 8 9 10 11 12
Demand 100 150 175 200 225 300 354 380 915 946 965 990
Lead Time 2 4 3 5 4 2 3 6 5 5 6 4
Q.3 Table 2 presents the actual demand for the past 12 periods. Use Naïve Method and 3-Period 10
Moving Average Method to forecast the demand of 13th Period. Which method should be used
for forecasting?
Table 2
Period 1 2 3 4 5 6 7 8 9 10 11 12
Demand
8 13 23 34 10 18 23 38 12 13 32 41
(in 000)
Q.4 a “As Corona spreads globally, world is witnessing increased supply chain disruption, but also 05
changes in consumer spending habits.” Explain the effect of changing consumer spending
habits on supply chain decisions.
b “Use of Pricing and Revenue Management is very prominent in Hotel Industry.” Explain the 05
basis of Customer Segmentation used, Approaches used for Short and Long term Forecasting
due to larger deviation in Demand, and Effect of Discounts on Spot and Advanced Bookings
on Total Revenue of Hotel.
Q.5 a Differentiate between DAT and DAP Inco Terms and Explain in detail the obligations of 05
sellers and buyers for each.
b Demand for a particular product as shown in Table 3. 05
Table -3
Quarter 1 2 3 4
Demand (Units) 80,000 50,000 1,20,000 1,50,000
Additional Information:
 Hiring Cost = Rs. 100 / Worker
 Firing Cost = Rs. 500 / Worker
 Inventory Carrying Cost = Rs. 0.50 / Unit / Quarter
 Production / Worker = 1000 Units / Quarter
 Beginning Workforce = 100 Workers
 Beginning Inventory = 0 Units
Calculate the Total Cost for Chase Strategy of Aggregate Planning.
 CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)
Master of Business Administration (MBA)
Post Graduate Diploma in Management (PGDM)
Semester – IV University Examination, April - May 2020
MB806.3 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Date: 30/04/2020, Thursday Time: 12:45 PM to 01:15 PM Maximum Marks: 20

Important Instructions:
1. Section II consists of total 20 Objective Questions.
2. Total time for Section II is 30 minutes. (12:45 PM to 1:15 PM)
3. Maximum marks for Section II is 20 Marks.
Section – II

Q.6 A Multiple Choice Question: Encircle the correct answer 10

1 Which of the following is / are strategic decisions in Supply Chain Management? 01
a Selection of plant location b Selection of suppliers
c Selection of 3 PL d All of above
2 Which of the following is true for supply chain management? 01
The physical material moves in the Flow of cash backwards through the
a b
direction of the end of chain chain
Exchange of information moves in both
c d All of the above
the direction
3 The sequence of a typical manufacturing supply chain is 01
Storage–Supplier–manufacturing–storage– Supplier–Storage-manufacturing–
a b
distributor–retailer–customer storage–distributor–retailer–customer
Supplier–Storage-manufacturing– Supplier–Storage-manufacturing–
c d
distributor–storage–retailer–customer storage– retailer–distributor–customer
4 Reverse logistics is required because 01
a Goods are defective b Goods are unsold
c The customers simply change their minds d All of the above
5 The time elapsed between issuing replenishment order and receiving the materials in stores 01
is called
a Replenishment time b Lead time
c Idle Time d Free Time
6 Inventory holding cost is always represented as percentage of 01
a Unit cost of product b Ordering cost
c Transportation Cost d Total Cost
7 Ford supply chain is characterized by 01
a Loosely-held supplier networks b Vertical integration
c Increased product variety d Individual customization
8 The best strategy of minimizing the amount of safety inventory to be kept in a store without 01
hurting the level of customer service is
minimizing the uncertainty inherent in
a b minimizing the cycle service level
demand
minimizing the uncertainty inherent in
c d reducing the supply lead time
supply
9 For products with high level of uncertainty in demand, the following strategy is suitable. 01
Use of a faster mode of transportation Use of a slower mode of
a b
transportation
Use of a faster mode of transportation
c Keeping a higher amount of cycle stock d
and higher amount of safety stock
10 Which of the following requires Highest Service Level? 01
a Real Potato Salted Chips b Wedding Invitation
c Pizza d Site for House Construction
B Match the Following: 05

Column - 1 Column - 2 Answer

11 ABC Analysis a) Depends on Price of an Item
12 VED Analysis b) Depends on Movement of an Item
13 GOLF Analysis c) Depends on Essentiality of an Item
14 FSN Analysis d) Depends on Source of Supply
15 HML Analysis e) Depends on Annual Usage Value

C True or False: Encircle the correct answer 05

16 Economic Order Quantity (EOQ) Model can only be used if demand remains constant for a 01
product / component / item. (True) or (False)
17 Efficient and Fast Internal Communication is one of the challenges for Centralized Inventory 01
Systems. (True) or (False)
18 There exist an Inverse Relationship between Ordering Size and Ordering Cost. 01
(True) or (False)
19 Savings Algorithm can be used to design Routes for Shipment which results into Minimum 01
Transportation Cost. (True) or (False)
20 Machine Set Up Time is one of the key considerations while employing Just in Time 01
Manufacturing System. (True) or (False)