GreatLakes Institute of Management Program : PGWPM End Term Test

Logistics and SCM Total Marks 100 Time 2Hrs

Answer all Questions. Answer in brief and to the point.
Open Book and Online Test
(Answer must be sent by candidates after 2 hrs from the time of sending the paper on line)

Answer the multiple choice Questions:- 30 marks

1 A supply chain is essentially a sequence of linked:
a) customer and prospects b)supplier and manufacturer c)suppliers and customers
d) warehousing and wholesaling units e)events in the marketing process
2. Changes that affect a DRP Plan are
a) a) Forecast Errors b) Forecast Revisions c)Lead-Time Variation d)Inventory Loss or Spoilage

3. Which of the following is true of an aggregate forecast of a group of items or SKUs?

A.It may be divided by the number of SKUs to establish the SKU forecasts.
B.It is usually a better forecast than the SKUs forecasted individually.
C.It is of little value when SKU forecasts are available.
D.It is used to establish EOQ quantities. (SKU = Stock keeping Units)

4. Which of the following is used to convert the master production schedule into detail requirements?

A.production planning B.rough-cut capacity planning

C.production activity control D.material requirements planning

5. The practice of reducing the forecast by actual customer orders is known as

A.available-to-promise B.order integration C.demand commitment D.forecast consumption

6. Which of the following types of demands should be input to the master schedule?

I. End-item orders II. Service parts III. Forecast for end items

A. III only B. I and II only C. I and III only D. I, II, and III

7. The length of a forecast horizon is determined primarily by the

A.delivery time allowed by the customer B.length of the manufacturing cycle

C.purpose of the forecast D.longest component lead time

8.Which of the following statements best describes how the production plan is related to the resource plan?

A.The production plan is constrained by the resource plan.

B.The production plan operates independently of the resource plan.
C.The resource plan drives the production plan.
D.The resource plan cannot succeed without a level production plan.
9. Exponential smoothing techniques are desirable in a production and inventory control environment for which of
the following reasons?

I. Low cost II. Long-range accuracy III. Flexibility of application

A.I only B.II only C.I and III only D.I, II, and III

10.In resource planning, the bill of resources is based on which of the following?

A.the lot size of a typical product B.the lot size of each product
C.one unit of the typical product D.one unit of each product

11. Four common levels of detail in forecasting are listed below. Which of the following properly ranks
the levels of detail above from the lowest to the highest?

I. Product family (units) II. Product family (dollars) III. SKUs (units) IV. End items (units)

A.I, II, III, IV B.I, II, IV, III C.II, I, III, IV D.II, I, IV, III

12.If a SKU has seasonality , trend and also has step increase or decrease after every quarter , which
forecasting method should be used in priority?

A.Exponential method. B.Linear Regression C.Holts Method D.Holt-Winters Method.

13. A manufacturer in assemble to order environment would be most likely to stock

A.raw materials B.subassemblies C.manufactured parts D.finished goods

15. All of the following are sources of demand that should be considered in sales and operations
planning EXCEPT

A.customer order backlog B.service part requirements C.firm planned orders D.interplant demands

16. When a tracking signal limit is exceeded, which two of the following should be done?

I. The alpha should be adjusted. II. The cause should be determined.

III. Corrective action should be taken. IV. The limit should be adjusted.

A.I and III B.I and IV C.II and III D.II and IV

17. When the number of a company's distribution centers serving a geographical area increases but the
level of customer service remains the same, the result is generally (tick)

A.an increase in transportation costs B.an increase in delivery lead times

C.a decrease in the company's investment in real property D.a decrease in aggregate inventory levels
18. The most desirable initial attribute in suppliers of companies that adopt JIT production is

A.on-time delivery B.consistent quality C.competitive pricing D.adequate capacity

19. When planned orders from MRP are used to help vendors plan their capacity needs, the planned orders become
which of the following?

A.vendors' scheduled receipts B.vendors' master schedules

C.part of the vendors' gross requirements D.vendors' firm orders

20. Which principle of supplier partnerships is LEAST important?

A. compatibility of interests B. pricing C. mutual need D. trust
26. The involvement between a customer and a supplier increases when

A.there are many suppliers B.there is a high degree of value added

C.technology is established D.there is a low degree of value added
21.
The supplier base should be reviewed and updated with the objective of

A.decreasing the supplier base B.increasing the supplier base

C.maintaining the same number of suppliers D.cost reduction
22. A long-term supplier relationship can generate the following benefits EXCEPT

A.permit volume pricing B.reduction in time to market C.reduction in quality issues

D.reduction in the MTBF (mean time between failures)
23. The three primary inputs to an MRP system are

A.bills of material, inventory status, and master production schedule

B.bills of material, product structure trees, and inventory status
C.bills of material, customer orders, and master production schedule
D.product structure trees, master production schedule, and lot sizes

24. Supplying vendors with projections of future orders provides support for which of the following vendor
activities?

I. Workforce stabilization II. Raw material cost reduction III. Capacity utilization improvement

A.I only B.III only C.II and III only D.I, II, and III

25. Transportation Planning requires the following data EXCEPT

A. Rates and Lanes B. Locations of Warehouses and Factories

C. Carrier Details D. Order Details E. Bill of Distribution

26. Using Third party contractors /3PL Service providers to carry out some or all Logistics Functions can provide
the following benefits EXCEPT
A.Improved Business Focus B.More current Logistics Technology C.Less Tech and Resource Flexibility
D.Efficient warehousing and Rapid Replenishment

27. Which of the following capacity planning functions would most likely be eliminated when a manufacturer
implements JIT techniques?

A.rough-cut capacity planning B.resource requirements planning

C.capacity requirements planning D.supplier capacity planning

28. Which of the following capacity management techniques would be most effective for reducing delivery lead
time in a make-to-order production operation using Just-in-Time (JIT) methods?

A.measuring and controlling work cell utilization B.releasing and controlling orders using kanban
C.providing detailed schedules of shop floor operations D.on-line tracking of work-in-process inventories

29. The value addition from a vendor can be greatly enhanced if

A.the vendor has in plant person B.there is a high degree of visits from supplier
C.more coordination in planning D.there is few items given to the supplier

30. When selecting a Collaborative Planning software , the following points are considered most important
EXCEPT

a) CPFR process enablement b) Rapid implementation c) Robust delegated security model

d) Flexible user configurable solution e) GUI Driven Exception Management

Brief Questions 25 marks

1. The difference between Break Bulk and Cross Dock is ( 2 lines and a sketch is required ) ..5 marks
2. Explain Bullwhip Effect and its remedies 5 marks
3. Explain Mass customization , Cross Docking, Heizunka , Keiretsu ,Milk Run 15 marks
4. 3 most important Logistics and supply chain challenges from any manufacturing or
Service Industry and their possible solution 15 marks

7.

a.What are the principles of Inventory Management System ? 10 marks

b.Explain ABC , VED, PQRS System .

c. What is Cycle Counting and Buffer Stock

Answers must be brief for case questions (Cases have been given to participants already)
20 marks

Case : Polo Ralph Lauren

1. Develop the framework of a Collaborative supply chain issues between the three partners.
 2. Differentiate between Traditional supply chain and Collaborative supply chain in context of Luen Thai and
Polo.
3. Examine how technology will enable collaboration amongst Luen Thai and its partners and the effect of
such collaboration ?
4. Examine how Polos relationship with Luen Thai has evolved and examine the impact of collaboration on
Polos Business Model ?
5. How does supply chain city initiative complement the D2S initiative ? What are the synergies?

OR

Case Questions 20 marks

Case . Barilla Spa

1 Explain the core issue of Channel Coordination ie how tasks and decisions in the channel can be re
allocated among channel partners to increase the efficiency and effectiveness of the channel ?
2 What is Bull whip effect and how it affects the entire supply chain ?
3 Evaluate some of the hidden costs as a result of Promotions ?
4 What are the benefits and drawbacks of the JITD Program ? Which customers should be targeted first for
such a Program ?