STUDENT DECLARATION FORM

FINAL EXAM
SEMESTER NOVEMBER 2021 (32134)

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Student Name : HAFHEIZA BINTI AMER HAMZA

Student Matric : 4193000471

Program : BBA

Course Name : PMS3313 SUPPLY CHAIN MANAGEMENT

Course Code : PUAN MAZIANA ZAINAL ABIDIN

 FACULTY OF BUSINESS AND ACCOUNTANCY

CODE AND COURSE NAME PMS3313 SUPPLY CHAIN MANAGEMENT

LECTURER’S NAME PUAN MAZIANA ZAINAL ABIDIN

STUDENT’S NAME HAFHEIZA BINTI AMEER HAMZA

STUDENT MATRIC NO. 4193000471

PROGRAMME BBA

EXAMINATION DATE 14 MARCH 2022

This final examination measures the student's ability for the following outcomes:

QUESTION NO. 1ST EXAMINER 2ND EXAMINER EXAMINER’S ENDORSEMENT:

(MARKS) (MARKS)
Please tick (√) in the appropriate space.
I have checked the answers on each page.

I have calculated all marks correctly.

TOTAL

First Examiner Second Examiner

Name : Name :
Date : Date :
Signature : Signature :

QUESTION 1

A.
Because of its direct sales and build-to-order approach, Dell has built a world-class
supply chain by conducting all of its operations via the internet. This is how you build
a world-class supply chain. Dell's e-commerce strategy enables them to deliver their
products directly to customers in a timely manner.

Items from Dell can be ordered directly from the company's website, with delivery
expected in a few days. Customers can even build their own Dell computer system
with a few mouse clicks. By allowing this for the consumer, the user receives the exact
product they desire, designed and loaded with the exact specifications that each
individual consumer requires. As a result, Dell can keep inventory levels low. Dell has
attracted thousands of businesses due to its e-commerce platform, which encourages
large-scale purchases of Dell products. Dell has attracted thousands of businesses due
to its e-commerce platform, which encourages large-scale purchases of Dell products.

Dell now has tailored supplier information as a result of its e-commerce strategy.
Dell's suppliers can log in to view real-time information on existing and outstanding
orders, providing them with a better understanding of the company's actual supply
requirements at any given time.

B.

Dell's strategy for competing with retailers who already have a stock is to offer
low prices to customers Companies can gain market share by attracting new
customers who spread the word about the offering and luring customers away from
competitors by offering a low price. The goal is to quickly enter the market and
then gradually raise prices without alienating those early adopters. as a result of
low fixed costs. It also allows customers to customise their product based on their
needs by providing a virtual display over the internet, whereas supplies in stores
are limited. Dell manufactures products in a matter of hours and delivers them to
customers in a matter of days.

C.

In order to meet demand accurately and on time, the supply chain must be
consistent in order to avoid the Bullwhip effect. Dell created web pages where
suppliers can forecast component demand by viewing available stock and avoiding
problems associated with unnecessary components and products.

D.

The disadvantage of Dell's Direct Sales Model is the cost of shipping and
customer support services, which must be borne by the company after the sale. Dell
bears the direct cost of shipping because it deals with the customer directly and
retailers have no role to play. In contrast to Dell, which delivers small orders
individually to customers, other companies produce and ship products in bulk. Dell
bears all transaction costs associated with the order, from receipt to execution and
after-sales services. The Direct Sales Model has a cost advantage on the
production side but a cost disadvantage on the support side. Dell is overly reliant
on a single product, despite extensive customization of that product. More diverse
products can be manufactured in one location if the company's operations are
centralised. When plants are dispersed, the number of different products that can
be manufactured in a given location decreases, as does the potential for gaining
economies of scale. Even if there are no legal constraints, there may be issues with
profit repatriation due to some domestic policies in those locations, as well as
exchange rate fluctuation risks.
SECTION B

QUESTION 1

Month (X) Sales (Y) XY

1 20,000 1 20,000

2 22,000 4 88,000

3 18,000 9 162,000

4 24,000 16 384,000

5 20,000 25 500,000

6 26,000 36 936,000

∑X=21 ∑Y = 130,000 ∑ 2=91 ∑XY = 2,090,000

i = t-n+1 = 6-3+1= 4

a. F7= (24000+20000+26000) / 3 = 23,334 units

b. F7= (0.4*26000)+(0.3*20000)+(0.2*24000)+(0.1*18000) =

= 10400+6000+4800+1800

= 23000 units

c. F6 = 15000+[0.4 (20000-15000)] = 17000

F7 = 17000 + [0.4 (26000-17000)] = 20600

d. b1 = n ∑XY – ∑X∑Y
n ∑ 2- (∑ )2

b0 = ∑Y – b1 ∑X

b1= 6(2,090,000) – (21) (130000)

6(91) – (21)2

= 9810000

105

=93428.57
 UNISEL-FBA
ANSWER BOOKLET
b0 = 130000 - 93428.57(21)

= - 305333.33

Y = - 305333.33 + 93428.57(7) = 348666.66 = 348667 units

A three-month moving average,

F7 = 24,000 + 20,000 + 26,000/3

= 70000 / 3

= 23,333 Units

A four-month weighted moving average calculated by applying 0.4 to the most recent month, 0.3 to
the second most recent month, 0.2 to the third most recent month, and 0.1 to the fourth most
recent month.

F7 = (26,000 x 0.4 + 20,000 x 0.3 + 24,000 x 0.2 + 18,000 + 0.1)

= 39,200 Units

QUESTION 2

Monthly demand(R) = 5,500 units x 12 = 66,000

Setup cost ( S ) = RM300 per unit

Holding cost ( kC ) = RM30 per unit

Unit cost ( C ) = RM150 per unit

( LT ) = 10 days

Number of days per year = 360 days

1. EOQ

EOQ = √2RS/kC

¿ √ 2(66000)(RM 300)
30
= 1149 Units

2. Total purchase cost (APC)

 UNISEL-FBA
ANSWER BOOKLET
RxC

= (5,500 )(150)

= RM 825000

3. Annual holding cost (AHC)

(Q/2) X k X C

1149 x RM 30
2
=RM 17,235

4. Annual order cost (AOC)

(R/Q) X S

¿ 66000 x RM 300
1149
=RM 17,232

5. Annual total cost

APC= 825000*12=9900,000

APC + AHC + AOC

= RM 9,900,000 + RM17,235+ 17232

= RM 9,934,467

6. Reorder point (ROP)

(R/360) x LT

66,000 x 10 days
350
= 1833 Units

7. Number of order placed per year

R/Q
 UNISEL-FBA
ANSWER BOOKLET
66,000
1149
=57 orders

8. Time between orders

360/no. of order place per year

360
=
57
= 6 days