BA0l73 SINGAPOREPOLYTECHNIC

Diploma in Business Adninistration Stage (Evenings 4A' Only) Time Allowed: Instructionsto Candidates
l.

2 hours

The examination rulessetout on the lastpageof the answer bookletareto be complied with. Thispaperconsists questions: of5 I Question 2 Question 3 Question 4 Question 5 Question Totat Marks 20 20 20 20 20 tOe

2.

J.

AnswerALL questions. All answers to bewrittenin the answer are bookletprovided. may be answered any order but your answers Questions in must show the question number clearly.ALWAyS starta newquestion a freshpage. on Use sub-headings highlightall reasons considerations to or elaborated all in your answers. This examination paperconsists pages of6 (inclusive ofcover page;.

,1

5. 6.

7.

2009/20t0tsl
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Page 1

8A0173 ANSWERALL QUESTIONS. l. Count-Culate (CC) is a company sellscalculators, that with daily sales 55 of trnits.CC's calculators soldat $10 eachandthe costpriceis 20%o the are of sellingprice. Everytime anorderis made, will incur$300on transportation $2 on CC and administration $12to unloadandreceive goodsinto thewarehouse. and the CC's inventory holdingis 20%of its calculators' price. cost Thefollowing assumptions made: are - thereare 7 daysa week,and - 52 weeksa year, (a) (b) (c) Calculate CC's annual demand. (2 Marks) Calculate CC's orderins cost. (2 Marks) Calculate CC's inventory holdingcost. (2 Marks) (d) (e) Calculate CC's Economic Ordereuantity (EOe). (2 Marks) Calculate number orders will placeto their suppliers the of CC per year? (2 Marks) CC felt thatit is currently workingwith too manysuppliers. Identifii anddescribe TWO appropriate any sourcing strategies CC should that applyin his currentsituation. (6 Marks) Briefly discuss FOUR typesofpurchasing the decisions. (4 Marks) Total: 20 Marks

(D

(g)

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Page2

8A0173 You arethe newlyemployed SupplyChainManager Koolz, a company of that sells trendy footwear.Their manufacturingplantfs located in China'anj they have 5 retail outletsin Singapore. Theiriustomers are marnly teenagers of both genders._ They engaged a..transportation companyto move their goods from the warehouses the reta outlits aswell asbetweentrrereta' to outlets. Recently, saleslave dropped significantly and inventory has piled up. Therefore, Work Improvement a Team(WITi is formedandyou areappointed the leaderof this team. common complaints receivedare the ignorance the reta' outletsservice of staff,especially whenit comes a situaiionwherecustomers to requirethemto checkstock availabilityin other retail outlets.Furtherchecksreveared that Koolz doesnot havea system integrates the stockinformation. that all Three months ago, the manufacturing_ plant was told to producemore by the warehouse Singapore to a sudden in due increase sales. in After investigiing further, the suddenincrease saleswas attributedto the Greatsingapor! in sat! campaign wherepricesofthe footwear werereduced at least20%o. by (a) Identi$rthekey SupplyChainEntitiesmentioned thefirst in paragraph. (6 Marks) (b) Stateandexplainthe SupplyChainManagement (SCM) problemthat leads thehigh inventory to levels. (2 Marks) Discuss briefly any THREE causes the SCM problemstated of above in Q2(b). (6 Marks) Your previous company usesERp systems which allow integration of vari_ous, function and you believethat by implementingan ERi systems in Koolz,it will helpto solveits currentproblems. Briefly explainthe concept ERPsystems. of (2 marks) ProvidegNE advantage ONE disadvantage implementing and of ERp systems Koolz. in (4 marks) Total: 20 Marks

(c)

(d)

(e)

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BA0l73
3.

Funky Fumiture(FF) is a fumiture manufacturer specialises customthat in madefumiture.It is a newlycreated company, business about3 months. in for FF charges a premium for its fumiture and takes a longer lead time for delivery.However,due to the natureof FF's customers (willing to pay and wait within the leadtime promised customisation), customers for generally its havea lowertolerance towards or non delivery. late FF promisesits customers delivery lead time of 2 weeks (14 days). a However,FF is not ableto meetthis commitment 50% of the time. A further checkrevealed FF's problems with its driver. that lies Last month, FF started to engagethe help of a 3'o party logistics provider (3PL) to conductits deliveries. The following is the performance report for April 2009provided its newlyengaged by 3PL: Order
I

2
J

Table3 Delivery Lead Remarks. if anv Time (davs) 14days 20 days Deliveryvehiclebrokedown.
l2 days 13 days 14 days

4 5 6 7 8 9 l0 (.)

I 0 days
I 3 days 14 days

1 missingbox

l2 days 14days

Define 3PL outsourcingand provide TWO examplesof logistics services canbe outsourced. that (4 Marks) Calculate FF's DELIVERY PERFORMANCE and PERFECT ORDER FULFILMENT for Aoril 2009. (4 Marks) Basedon the calculation donein Q3(b)above, would you recommend FF to continue engage 3PL? to this (2 Marks) Provide TWO outsourcing. advantagesand TWO disadvantages of 3pL (8 Marks)

(b)

(c)

(d)

(e)

Is Service PartsLogistics(SPL) suitable FF? Suppbrt for your answer with ONE reason. (2 Marks) Total: 20 Marks

2009/2010/sl
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8A0173 ?:?Slg" is a companythat sells corporategifts. DeeSignkeep stocks of different items in their distributioncentre(D-c) and customises them only whenordersarereceived. example, For whena company requests DeeSign to print the.company's logo andaddress onto a namecardLoldir, DeeSign sitarts theprintingonly uponreceipt thecustomer's of official order. (a) (b) Identifi the DC functionthat Deesignis operating under. (1 Mark) List theotherTHREE functions undertheDC strategy. (3 Marks) (c) Cunently, DeeSign imports its supplies from China and sends completed items from its Singapore to its Asian customers. DC The customers willing to pay more for a speedier are delivery.Suggest to DeeSignthe mode of transportation use for eachof the foitowirrs to operations. Justifueachanswer with a reason. (i) DeeSign importingits supplies is from China (ii) DeeSign fulfi ing ordersto its customers is within Singapore, and (iiD DeeSign fulfilling orders its customers is to outside Singapore. (6 Marks) DeeSign has originallywantedto set up a DC in eachcountrywhere there is customers. However,after hearingabout the,concepiof risk pooling,it has madethe decisionto haveonly one DC in Singapore. Explaintheconcept ofrisk poolingandprovideany TWO benefitithat DeeSign will gainby havingonly oneDC in Singapore, (6 Marks) DeeSign'sannual sale is 20,000 units of corporategifts, with an inventorytumoverof 4 times per year.If eachunit of corporate gift takesup 0.01m3 space, of and thai storage areatakesup SbX ofihe sizeof theDC. Calculate sizeof the DC thatDeeSign the needs built to if it plansto have10%growthon its currentsales. (4 Marks) Total: 20 Marks

(d)

(e)

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BA0173

5.

Your bestfriend,Susan, setup her own onlinestoresellingcup cakes. has She only manufactures cupcakes her upon receiving the orders and the cup cakes specialneeds,like lessersugar, that she bakescan caterto her customers' designs size. customised and (a) Briefly explainto Susan concepts a 'push' and a 'pull' Supply the of Chain. (4 Marks) (b) Determine with reasons Susan's if business a 'push' or 'pull' Supply is Chainwhendealingwith: (i) customers, and (iD suppliers (4 Marks) (SCOR) Susanhas heardaboutthe Supply Chain OperationsReference modelandwould like to know moreaboutit. Explainin detailthe FIVE processes coremanagement ofthe SCORmodel. (10Marks)

(c)

(d) Of the @ processes SCOR,which is the most core management in important?Supportyour answerwith ONE reason. ' (2 Marks)

Total: 20 Marks

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