UNISEL-FBA

ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321

FACULTY OF BUSINESS AND ACCOUNTANCY

CODE AND COURSE NAME PMS3313 / SUPPLY CHAIN MANAGEMENT

LECTURER’S NAME MAZIANA BINTI ZAINAL ABIDIN

STUDENT’S NAME DIVIYAA PERUMAL

STUDENT MATRIC NO. 4193000321

PROGRAMME BACHELOR OF BUSINESS MANAGEMENT

EXAMINATION DATE 13 MARCH 2021

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 :
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4193000321

STUDENT DECLARATION FORM

FINAL EXAM
SEMESTER NOVEMBER 2021 (32134)

To validate the examination and to protect the integrity of the examination process,
UNISEL students are required to complete this Student Declaration Form and to
submit together with the answer script or assignment for online, take home, or
project based examination.

I hereby declare and verify that:

 the work done is my own unaided work.
 I follow the procedure of the final examination/assignment/project.
 I appropriately acknowledge any part of a work that is not my own.
 I do not falsify or misrepresent authorship, evidence, data, findings, or conclusions
 I do not allow other students to copy or use my work unless required by my task.
 I do not use or submit the work of other student unless a task requires this.
 I do not use or submit the work of others such as family members and friends.
 I do not submit the same piece of work for assessment in more than one subject.

 I hereby declare that I have read and understood the rules for undertaking the
final online examination/take-home examination/project. I certify that this declaration
is true and correct. I understand that if this declaration is found to be untrue or
incorrect, I may be subject to penalties in accordance with the University’s rules and
regulations.

Student Name : DIVIYAA PERUMAL

Student Matric : 4193000321

Program : BACHELOR OF BUSINESS MANAGEMENT

Course Name : SUPPLY CHAIN MANAGEMENT

Course Code : PMS3313

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ANSWER BOOKLET
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4193000321

EXAM SLIP
 UNISEL-FBA
ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321
SECTION A

QUESTION 1

Dell has built a world-class supply chain by conducting all of its operations through the
internet, thanks to its direct sales and build-to-order approach. This is how a world-class
supply chain may be built. Dell's e-commerce strategy allows them to provide their products
directly to customers in a short amount of time.

Dell items can be ordered directly from the company's website, with delivery expected
within a few days. With a few mouse clicks, customers can even construct their own Dell
computer system. By allowing this for the consumer, the user gets exactly the product they
want, designed and loaded with the exact specs that each individual consumer demands. As a
result, Dell is able to maintain inventory levels low. Dell has been able to attract thousands of
businesses thanks to its e-commerce platform, which fosters large-scale purchases of Dell
products. Dell has been able to attract thousands of businesses thanks to its e-commerce
platform, which fosters large-scale purchases of Dell products.

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

Finally, by removing distributors and merchants, Dell was able to increase its profit margins
through direct sales. Dell can keep its prices low since it doesn't have to make products that
its consumers don't want. By connecting orders directly to providers, Dell has decreased the
length of its supply chain. Suppliers will be able to estimate how much they will have to
create and deliver. Payments are collected after the sale, however outbound billing patterns
are used to clear suppliers' debts.
 UNISEL-FBA
ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321
QUESTION 1 (B)

Dell competes with a merchant who already has inventory on hand by utilising a value chain
that transfers value from the supplier to the customer, giving Dell a competitive edge. Dell
has been able to arrange its order processes, products, and assembly lines in such a way that
personalised products may be assembled in only a few hours. Dell has the option of deferring
assembly until after a customer order is placed. Dell is not only able to compete, but it is also
able to benefit in more ways since it optimises the benefits of deferral by focusing on
innovative items with difficult-to-predict demand. Manufacturers who sell through stores
have proved that postponing is almost impossible. This is why producers are frequently
caught up in profitable product combinations. Dell, on the other hand, is better at matching
supply and demand.

Due of minimal fixed costs, Dell's strategy for competing with retailers who already have
stock is to provide low prices to customers. Customers can also customise their goods based
on their demands by using a virtual display on the internet, whereas retail supplies are
limited. Dell produces things in just a few hours and ships them to clients in just a few days.
 UNISEL-FBA
ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321
QUESTION 1 C

The bullwhip effect would not exist if all of the orders were placed to match the demand. Dell
responds by creating a webpage for its vendors. The platform allows vendors to see what is in
stock and what needs to be delivered right now. This gives suppliers a platform to make real-
time deliveries.
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4193000321
QUESTION 1 (D)

The model's drawback is that after a consumer places an order, Dell produces and ships it to
them, incurring shipping fees. Most computer businesses manufacture and sell in volume,
while Dell sends little numbers to a large number of customers, placing it at a disadvantage.

The other drawback is that Dell is responsible for all support expenditures, including
handling client inquiries and information, tracking orders, and providing post-sale assistance.
"The direct sales model delivers a cost benefit on the production side, but a cost disadvantage
on the support side," according to Leeman.
 UNISEL-FBA
ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321
SECTION B

QUESTION 1

Month (X) Sales (Y) x2 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 three-month moving average,

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

= 70000 / 3

= 23,333 Units

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

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

= 23,000 Units

The company also has other forecasting methods by using exponential smoothing with α =
0.40, assuming forecast for month-5 is equal to 15,000 and the last method is linear trend
equation.

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

= 17000

F7 = 17000 + [0.4 (26000 – 17000)]

= 20600
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DIVIYAA PERUMAL
4193000321

b. 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
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ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321
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(5,500 x 12) (RM300)

(RM30)
= 1149 Units
2. . Total purchase cost (APC)
Monthly demand x C
= 5,500 x150
= RM 825,000

3. Annual holding cost (AHC)

(Q/2) X k X C
= 1149 x RM30
2

= RM 17,235

4. Annual order cost (AOC)

(R/Q) X S

= 66000 x RM300
1149

=RM 17,232
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ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321
5. Annual total cost
TAIC = APC + AHC + AOC
= Annual purchase cost = 825000 x 12
= 9900000
= (RM 825000 x 12) + RM17,235 + 17232
= RM 9934467

6. Reorder point (ROP)

(R/360) x LT

66,000 x 10 days
360

= 1833 Units

7. Number of order placed per year

R/Q

= 66000
1148

=57 orders

8. Time between orders

360/no. of order place per year

= 360
57

= 6.3 days

= 6 days
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ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321

QUESTION 3
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4193000321

Location A
RM 200,000 + (RM 70 x 35,000)
= RM 200,000 + 2,450,000
= RM 2.650,000

Location B
RM 400,000 + (RM 45 x 35,000)
= RM 400,000 + 1,575,000
= RM 1,975,000

Location C
RM 500,000 + (RM 25 x 35,000)
= RM500,000 + RM 875,000
= RM 1,375,000

Location D
RM700,000 + (RM15 x 35,000)
= RM1,225,000

Location D is the best plant location

 UNISEL-FBA
ANSWER BOOKLET
DIVIYAA PERUMAL
4193000321
QUESTION 3(B)