CODE:-MB401 LOGISTIC AND SUPPLY CHAIN MANAGEMENT

UNIT - I
Q.No Description

Marks

[12M]

a) Define Supply Chain Management. Explain functions of Supply Chain

Management.

(OR)

b) Explain the obstacles to achieve Strategic Fit. Also explain Managerial [12M]
leavers to achieve strategic fit.
a) What do you mean by Supply Chain Management? Explain the objectives of
[12M]
Supply Chain Management.

(OR)
b) Define Aggregate Planning. Explain the role of aggregate planning in
managing Demand and Supply.
3

a) What do you mean by Supply Chain Management. Explain the process view
of Supply Chain Management.

[12M]

[12M]

(OR)

b) What do you mean by Supply Chain Drivers? Explain the role of Supply
Chain Drivers in Supply Chain Management.

[12M]

a) Explain how the Supply Chain achieves Competitive Advantage. Also

explain different Supply Chain strategies used in supply chain to achieve
Strategic Fit.

[12M]

[12M]
(OR)
b) Define Supply Chain Management. Explain the process view of Supply
Chain Management.
5

Case study (compulsory)

[12M]

TASTY FOOD PRODUCTS

Tasty Food Products established in 1980, distributes a 100 item product
line of canned vegetables, fruits, condiments and speciality items (such as
pappads. Fruit jams and pickles) to wholesalers in several states of South India.
Tasty food products introduced a new customer order policy to
improve its service to its wholesalers and also the effectiveness of its sales
representatives. Two important features of this program are (i) sales people are
free from the work of order taking and (ii) orders received from wholesalers on
a predetermined schedule.
The companys sales representatives are no longer to process customer
orders. Earlier practice was to accumulate wholesale orders until they had
enough volume to make up a truck load and then send the orders to the head
office. Under the new program, wholesalers are to e-mail their orders directly
to the head office as per a fixed schedule (say once in a month or so). If the
wholesalers miss their fixed date they have to wait for the next fixed date as per
schedule.
These procedures are designed to increase the number of sales calls the
sales people could make to their customers. The assumption is that sales people
would spend more time determining the sales patterns and the effect of sales
promotions if they are relieved of the task of order taking and transmitting the
consolidated orders to head office. By this, each sales person could do more of
a sales job rather than the order taking job.
But, unfortunately many wholesalers failed to follow a predetermined
order schedule. They were not used to the system where someone would have
to tell them when to order. Some wholesalers complain against fixed schedules
and lack of flexibility. Others were so much dependent on sales persons to
determine what their requirements are and felt that the new program meant
more work for them.
If the orders do not reach the head office according to the schedule, the
wholesaler has to wait for two weeks to place the next order. If a wholesaler
misses a fixed scheduled date for ordering, he would run the risk of having a
stock-out which would cause a loss of 20 to 30 percent of sales of tasty food
s products. But due to this only tasty-food products company suffered because
the wholesalers and retailers carried several product line of competitors and
when Tasty-Foods brands were out-of-stock, they sold other brands.

Tasty Food Products has no integrated logistics department to deal with its
distribution activities. In the past, three salespersons were made responsible for
arranging transportation . When they accumulated orders worth rupees 3 lakhs
(nearly a truck load ) they would send the orders to the head office for
shipment. To expedite shipment for wholesalers who have urgent need, a sales
person in one area would try to combine his orders with another sales person of
the adjoining area to meet the requirement of a full truck load. However, in the
new practice, the head office would ship according to a fixed schedule and
arrange the shipment with the wholesalers even if the order totaled to less than
rupees 3 lakhs.
Questions:
1. What are benefits and limitations of the new system of Tast-Food
Products for taking orders?
2. What are the advantages and disadvantages of the new system to a)
sales representatives, b) wholesalers/retailers?
3. Suggest a system that would provide better service to customers of
Tasty Food Products company, to improve sales and build closer ties
between the company and the wholesalers.

Note:

(1) Please put your subject code as file name

(2) Dont repeat question number
(3) Font: Times New Roman, 12 Size

UNIT-II
Q.No Description
1

Marks

a) Define Logistics Management. Explain the difference between Logistics [12M]

and Supply Chain Management.
(OR)
b) Define Customer Retention. Explain the importance of customer retention [12M]
in Supply Chain Management.

a) Explain
I.
Inbound Logistics
II.
Outbound Logistics
III.
Inter- model Logistics

[12M]

(OR)
b) Explain how an organization set different Customer Services Priorities and
Service Standards to increase the performance of Supply Chain.
3

[12M]

a) Define Customer Service. Explain different element of Customer Services

[12M]

provided by an organisation.
(OR)
b) a) Explain
I.
II.
III.
4

3 PL
4 PL
Reverse Logistics

a) Explain Integrated Logistics Management. Also explain how to maximize

productivity and cash flow through Integrated Logistics Management.

[12M]

[12M]

(OR)
b) What do you mean by Logistics Management? Explain the difference [12M]
between Logistics and Supply Chain Management.

Case study(compulsory)

[12M]

QUALITY IN LOGISTICS AT PROCTER AND GAMBLE

Total quality principles and tools have been well established in
every activity of business at Procter and Gamble (P & G) . Two of the most
powerful aspects of total quality within P & G have been (i) In process
improvement and (ii) Measurement systems.
Process improvement emphasizes that all parts of logistics are
interrelated processes and not stand alone functions. In response to this
principle, P & G completely restructured the company, creating a new
organization product Supply. The traditional hierarchy of manufacturing,
engineering, distribution and purchases was discontinued. This had tremendous
positive effect on how people inreact with each other and how they view their
work at P&G.
P&G also introduced measurement systems to virtually every process
within Product Supply. For example, all over the world, P&G introduced the
systems of measuring customer satisfaction through tracking of perfect
orders. Total order management monitors P&Gs logistics performance from
the time an order is generated until it is billed to the customer.
This quality thinking built a high degree of reliability throughout P&Gs
entire delivery system. These measures are included in their carrier
performance standards and communicated to their carriers. This helps the
carriers to have a clear understanding of P&Gs strategies and what is expected
of them. The efficient carriers soon develop their own measures and present the
same to P&G on a regular basis.
P&Gs experience is that data are the most powerful tools they have.
Without data, no company can achieve quality in its logistics operations.
Questions:1. Discuss the two aspects of total quality that P&G introduced in its
business.
2. What kind of organizational restructuring P&G brought about to
improve its logistics quality?
3. What kind of performance measure P&G use to measure customer
satisfaction?
4. How did P&G build a high degree of reliability in its entire delivery
system?

Q.No
1

UNIT-III
Description
a) Define Benchmarking. Explain the objectives of benchmarking.

Marks
[12M]

(OR)
b) Define sourcing. Explain Internal and External Sourcing with its advantages
and limitations.
2

a) Explain different types of Benchmarking and also explain the process of

Benchmarking.

[12M]
[12M]

(OR)
[12M]
b) Explain Strategic Sourcing process. Also explain different strategies of
Sourcing.
3

a) What do you mean by Benchmarking? Explain how to set benchmarking

priorities to improve the performance of all areas of supply chain.

[12M]

(OR)
b) Define Procurement. Explain in detail the process of Procurement function
conducted in an Organization.

[6M]
[6M]

a) Define Global Sourcing. Explain the advantages and challenges of Global

Sourcing faced by modern organizations.

[6M]
[6M]

(OR)
b) What do you mean by Benchmarking? Explain the objectives of [12M]
5

benchmarking.
Case study: (compulsory)
DILEMMA AT COOL AIR AIR CONDITIONERS
Cool Air Air-conditioners is manufacturer of commercial air- conditioning
units which are exclusively used on the roof of malls or restaurants. Nearly 80
percent of its sales are replacement models which means that the company
relies heavily or repeat customers.
An air conditioner usually breaks down with little or no warning. Often
the customer is under pressure on finding a replacement within a day or two to
run his business. Therefore, the customer is mainly concerned with supplier
response no matter who the supplier is.

[12M]

Cool Air Air-conditioners hired Reliable Logistics, a logistics

consulting company to help optimize their distribution network and revive
sales. At that time, they had 20 distribution centres and warehouses around the
country , stocking 40 different models.
Reliable Logistics first thought of shrinking the distribution network to
four or five strategically located warehouses, each with extensive inventory.
This strategy would have reduced 25 percent of Cool Air Air-conditioners
costs, but would have made rapid delivery tough. The marketing manager of
Cool Air Air-conditioners suggested that the company should go in the
opposite direction and expand to 30 locations with a full range of products. But
that would have been prohibitively expensive.
Questions:1. What do you think are the problems faced by Cool Air Airconditioners?
2. Comment on the idea of Reliable Logistics to reduce the distribution
centres/warehouses from 20 to 4 or 5 strategic locations.
3. What would you suggest to ensure local availability with minimum
inventory for Cool Air Air-conditioners in their distribution network?
Note:

(1) Please put your subject code as file name

(2) Dont repeat question number
(3) Font: Times New Roman, 12 Size

UNIT IV
Q.No Description

Marks

[12M]

a) Define Bullwhip effect. Explain behavioral and non- behavioral causes

leading to Bullwhip effect.

(OR)

b) Explain the role of Transportation in Supply Chain. Also explain factors

influencing Transportation Decisions.

[12M]

a) Explain the obstacles to Co-ordination in supply chain and also explain

managerial leavers to overcome the obstacles in Supply Chain.

[12M]

(OR)

b) Explain different Modes and Intermodal Transportations with its advantages

and disadvantages.

[12M]

a) Define Network design .Explain the factors influencing Distribution

Network design.

[12M]

(OR)

[12M]

b) Explain how Co-ordination in supply chain helps to increasing the

performance, efficiency and responsiveness in Supply Chain.
4

a) Explain in detail different Transportation document used to transport

shipment from one destination to another destination.

(OR)

[12M]

[12M]

b) What do you mean by Bullwhip effect? Explain behavioral and nonbehavioral causes leading to Bullwhip effect.

Case study:
SHOP, SHIP AND TRACK ON THE WORLD WIDE WEB
The World Wide Web has opened new market horizons worldwide and has
given retailers access to customers around the globe. But on line shopping has

[12M]

not replace printed catalogs and telephone call centres. It has extended the
marketers reach and has provided another valuable sales channel. For instance,
an on line shopper in Japan orders a jacket from L.L. Bean with a few clicks of
a mouse. The product is shipped from the companys warehouse at Freeport,
Maine by Fed-ex and delivered to customers door within 72 hours. During its
shipment, the shopper and L.L. Bean can track its movements. For L.L. Bean,
overseas sales is growing briskly. The companys web sites extensive customer
service pages are available in English, Japanes, French, German and Spanish.
The fulfilment logistics for orders typically remains the same, however,
whether the orders are placed through telephone, fax, mail or on line. Bean has
developed a $200 million business in Japan and has smoothed out the logistics
challenges of international orders. Beans in-house fulfilment centre in Freeport
processes domestic and international orders using product bar codes. The
companys address lable software is flexible enough for addresses anywhere in
the world. All international packages are shipped within 24 hours. Orders
placed at the Tokyo call centre can even be shipped the same day.
Key to the global success of direct retailers is reliable international
shipping. Through companies like Fed-ex, the largest express transportation
company, 90 percent of the worlds GNP can be reached within 48 hours. Fedex
continues to expand its services and networks to accommodate the growing
flow of goods across national borders.
Fed-ex offers much more than timely word wide delivery of small packages for
consumers and documents for businesses. Fed-ex is also handling larger packages,
like components and product delivery to manufacturers and distributors. Pri-Ex , a
Korean Fed-ex licensee have introduced a supply chain management system and
offer delivery services in Korea through twice-daily flight services to Korea using
their own aircraft. With Fed-ex, commercial customers can get the benefit of door
to door service, customs clearance and savings in time, storage and labour. Access to
international shipment information, critical to businesses is available both one thee
Fed-ex site and with its Super Tracker Software.
While allowing firms and customers to focus on the details, such as package
tracking and order status, the Internet has also opened up vast new markets across
the globe to companies of all sizes. Through on line sales and efficient express
shipping, companies can quickly reach across continents to customers anywhere in
the world.

Questions:
1. Discuss the advantages and disadvantages of on-line shipping through
Internet form both customers and marketers perspective.
2. Discuss the role of logistics service providers such as Fedex in international
logistics and supply chain management.
3. Discuss the potential future trends and advancements in information,
communication and transportation technology and their impact on global
supply chain management.

1.
Note:

(1) Please put your subject code as file name

(2) Dont repeat question number
(3) Font: Times New Roman, 12 Size

UNIT V
Q.No Description

Marks

[12M]

a) Define information technology in supply chain. Explain the role of IT in the

Supply Chain.
(OR)
b) Define Global Supply Chain Management. Explain the difference between
Global Supply Chain Management and Domestic Supply Chain Management.

[12M]
2

a) Explain different latest Information Technology tools used in Supply Chain

for sharing of information with speed and accuracy.

[12M]

(OR)
b) Define Global strategies. Explain Global purchasing with its advantages and [12M]
the limitations.
3

a). Explain
I.
II.
III.

[12M]

CRM
Internal SCM
SRM

[12M]

(OR)
b) Define Global logistics in Global economy. Explain change in Global
logistic in recent time.
4

a) Explain the feature of Information Technology in supply chain. Also explain

Supply Chain IT in practice.

[12M]

(OR)
b) What do you mean by Global strategies? Explain Global purchasing with its
5

advantages and the limitations.

Case study (compulsory)

[12M]
[12M]

CHRYSLER UNSEATS ITS COMPETITION WITH SUPPLIER

PARTNERSHIPS

When Lee Iococca gave the go ahead to Chryslers Neon Project in

1990 , he was taking a big risk. Until that time; no American subcompact car
had been able to turn a profit for its manufacturer. But Chryslers Neon
ultimately reversed this trend; mainly because of the unprecedented
partnerships Chrysler entered into with its suppliers in the earliest stages of
the Neon Project.
Robert Marcell, head of Chryslers small car division, knew that such
partnerships held the key to Chryslers success. In order to make a profit,

Marcell had to meet stringent production schedules for which he had to bring
suppliers on board early. This is crucial because outside companies would be
furnishing 70 percent of the value of the car in the form of tyres, seats,
suspension, and other components.
In an unprecedented move, Marcell allowed engineers form key potential
suppliers to drive the first Neon prototype during an October 1990 meeting.
His team then issued a cost challenge, inviting suppliers to make use of
sensitive Chrysler financial data and ideas in a mutual effort to cut costs.
Companies who entered into this unique partnership found that
collaborating with Chrysler was a two-way street. For example Johnson
controls, Inc was initially to make the Neons seats within Chryslers price
targets, but Chrysler was unhappy with their safety, weight and comfort.
After the supplier partnership agreement, ten Chrysler engineers moved into
Johnson controls firm near Detroit to work with the engineers of Johnson
controls. After working together for five days together the partners agreed on
new weight, cost and performance standards that were so on target that they
didnt have to be changed again.
As a result of this unique partnership, Chrysler was able to accept higher
component costs form Johnson controls because of overall saving for
Chrysler. At Chryslers request, Johnson designed some rear seats with the
capability of folding down to expand trunk space. But Chryslers engineers
insisted that Johnson design the special seats so that they could be installed
the same way as other seats. This made each seat cost more, but Chrysler
ultimately could save about $ one million overall in final assembly costs.
Thanks to its successful partnership with Johnson controls and other major
suppliers, Chrysler met its stringent cost and time deadlines for the Neon
and came out with Detroits first profitable subcompact car in the bargain.
Questions:1. Discuss the approach of Chryslers operations managers in developing and
building the Neon model.
2. Discuss the relevance of this case to the study of supply chain
management.
3. What benefits a manufacturing firm can achieve form its suppliers, through
outsourced manufacturing?
4. Discuss the differences between outsourcing and out partnering.
Note:

(1) Please put your subject code as file name

(2) Dont repeat question number

(3) Font: Times New Roman, 12 Size