SUBJECT : LOGISTIC MANAGEMENT
COURSE : Total
Marks : 80
Attempt any five Questions
(16 Marks each)
1. What is Physical Distribution Management (PDM)?
Why is PDM considered to be a critical area of overall supply chain management?
Discusst he system or 'total' approach to PDM in detail
2. "Many innovations on technology-based
approaches are well-suited to the enhancement of the effectiveness of Supply
Chain Management"-Justify the statement by giving few applications of
information technology in SCM
3.
Define
SCM integration and discuss the four stages of Steven's model of supply chain
integration. Also, describe the strategies involved in SCM integration
4.
Why is
the location of warehouse important for the SCM? Discuss some methods for
determining the location of the warehouse
5. What is Customer Profitability Analysis? Why
has it gained importance in the recent times? Is it ethical to deny a customer
who is not profitable?
6. What are the essential dlfferences in the
Supply Chain Management of Products vs. Services? Discuss the application of
Supply Chain Managernent principles in Financial Services .
7.
Explain
the two major functions of transportation functionality namely product movement
and product storage?
Subject: Logistics Management
Total
marks 80
Case 1 (20
Marks)
M/s Ador Electrodes Limited (AEL) was
incorporated in the year 1981 and is the second largest player in the welding
industry in India & has the widest product range amongst all its
competitors. As it has happened to a the industries, the heat of the
competition coming from the International Companies, mainly from China, started
affecting to this industry too.
‘The company has four
state-of-an-art manufacturing plants accredited with ISO certification &
backed by strong technical support from their foreign collaborators. The
company is also having a well established all India distribution network
consisting of numbers of dealers. The products flow from the manufacturing
plants to the warehouses, managed & maintained by the company, located at
different places across the country. The dealers draw their requirements from
these warehouses for onward delivery to their customers, The inventory of the
products is under the ownership of the company and is maintained as per the
anticipated demand in the region. Primary transportation from the plant to the
warehouses is the responsibility of the company, whereas the transportation
from the warehouse to the customer is the dealer’s responsibility.
The biggest drawback in the
present system is that the inventory at all warehouses is carried by the
company, blocking the huge amount of company’s working capital. The level of
average inventory they maintain is equal to their 6 months sales requirements.
Over & above, in many places where the sales are low, the stocks remain
unsold for longer periods. Moreover, because of improper maintenance of these
warehouses the stocks also get damaged I
spoiled or stolen. The warehouses are managed by the employees of the company
having no ‘basic qualifications & experience in inventory and warehouse management.The management
of the company took a serious note of the situation and now wishes to take
immediate steps to overcome the current logistical problems to face the
competitive scenario.
8. What are the company’s present logistical
problems?
9. Give your recommendations for improving the
company’s logistical performance?
Case 2 (20
Marks)
1967 M/s. Vijay Enterprise ventured into trading of electronic
consumer durable targeting the large
potential market in the year 1970, the company managed to get the exclusive
dealership of a leading electronic manufacturing company in India to market
their products in the Western Indiá. Later on, the company with a view to
create their own brand in the market established a plant in Maharashtra &
started their own manufacturing activities. With a manufacturing capacity under
their belt, the company increased their turnover tremendously in the next 20
years with the help of all India distribution network consisted of 4 regional
offices, 4 mother warehouses, 12 C & F agents & 75 stockists & 5000
odd retail outlets.
After the liberalisation of the Indian economy
in 1991, the entire business scenario- particularly in consumer durable
industry - has undergone a drastic change. The company started experiencing the
pressure of competition from local as well as international players. It was
observed that during the last 5 years sales growth has come down and the
company is losing its market share slowly& steadily.
The external agency that
conducted a study for the Company came out with their following observations.
1. At all levels in the company employee orientation is towards production
rather than marketing
2 The cost of product distribution is the highest compared to the
Industry standards
3. The warehouse space was
urderutilized — the utilization factor varies between 95 % during the peak
season and drop to 40% during the slack season.
4. There is duplication of many
logistics operations. Every department has their own policies I practices and objectives.
5. In more than 20 per cent of
the trips made to mother warehouses / C& F agents, the products are
despatched in less than full truckloads, resulting in high transportation
costs.
6. Only 65 % of shipments were
delivered on time, as a result of slow information flow and inadequate
connectivity across the system causing longer order processing time.
7. Transit damages were ranging
between 2 to 5 % due to improper logistical packaging and inadequate material
handling equipment.
6. The finished goods inventory is above the best
managed company in the industry
Questions:
1. Identify the main logistical problems of the
Company
2.
To offer better customer service level and reduce the operating
cost, how will you go about redesigning the distribution network?
3.
M/s. Decorative Laminates
Corporation (DLC) is a supplier of decorative sheets for wooden furniture
makers in domestic as well as commercial markets. In spite of competition n
this field their sales volumes shown growth during last 2 to 3 years. The last
year was recorded 15% more sales compared to previous year. Even though the
sales volume are increasing• the profit margin is getting reduced day by day
due to future competition.
In one of the monthly
management review meetings it was observed that the main cause for depleting
profitability is the increasing procurement costs. . The report presented by
the new Purchase Manger revealed that in order to obtain quantity discounts
from the suppliers the company was purchasing inputs & other maintenance
items much more than their actual requirements. This has not only created a
problem of holding huge inventories but necessitated hiring of additional
warehouse space to accommodate these high inventories. It has also been
observed that most of the purchasing tasks like inventory control are still
performed manually. The computers are used only for maintaining purchasing
records and printing purchase orders.
Questions
1.
What is the main problem
in this case? What are your suggestions to the company on inventory management?
2. What type of logistical cost approach you would
suggest to the company?
Case 4 (20
Marks)
M/s.
Compu-Tech is on the reputed Indian companies producing various types of
computer printers. Their production plant is situated at Noida in northern
India and the products are distributed through distribution centers located in
every region.
The company introduced LS
popular line of Desk Jet printers first time in India in 2005. Immediately on
the launch of this products
The solo more than one lacs
units during that year. But the problems came with the boom in sales. Already,
the company was running into serious inventory snags, particularly with service
to its customers situated In southern region. The printers were generally
shipped to all the distribution centers &
onward to the customers by road only. Unfortunately, that resulted in long lead
times, making It tough to meet the shorter delivery time offered by the local
sellers mainly from Southern India.
The
Company also found itself running short of production capacity to meet the
quantity requirements of certain large institutional & industrial
customers. To add to it, quite often the company was running out of stock for
certain fast moving models and at the same time facing problems of excess
inventory of other models. Working out product wise demand from each market was
also proving difficult for their manufacturing plant.
Questions’
1. What are the main problems in the logistical
network of M/s. Compu-Tech?
2. What solutions would you propose of overcome
these
Logistics Management
1. Describe
services which are provided by Inland Container Depot (ICD)?
2. Explain about
IATA traffic conferences?
3. Which factors
are involved in rate marketing?
4. Discuss
importance & benefits of warehousing?
5. Describe
about labels & preference for colors, numbers & shapes?
6. Explain types
& characteristics of inventory?
7. Describe
different types of bill of lading?
8. Discuss the principles of logistics
information?
Logistic Management
1.
Explain modal comparison & dominant traffic composition?
2.
Describe any five types of transportation?
3. What
are the features of multimodal transport system?
4.
Define a freight container as an article of transport equipment by ISO?
5. What
are the major implications of FOB contracts?
6.
Explain various stages for economy in packing cost?
7. What
are the features of multimodal transport system?
8. Explain about Container
Corporation Of India (CONCOR)?
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