Logistics and SCM prelim 2 – Vipin Saboo Tutorials

Prelim paper 2- Logistics and Supply chain management
Answer all questions. Each question carries 15 marks. Attempt any 2 questions from Q 1-4.
Q1 a. What are the objectives of logistics and how is logistics different from SCM
Q1 b. Why does an organisation do demand forecasting
Q 1 c Explain the 7Rs of logistics
Q2 a.What are the factors affecting the location of a warehouse
Q2 b Explain the various material handling equipments ?
Q 2 c Discuss Pipeline as a mode of transportation
Q3 a. What are the various selective inventory control techniques in Inventory management
Q3 b. What is VMI and how is it different from JIT
Q 3 c What are the various cost associated with Inventory management
Q4 a. What is various costing models adopted in Logistics
Q4 b. Explain milk run with a help of an example
Q 4 c What are the various internal measures of performance measurement?
Q5. Read the case and answer the questions below
M/s Excellent Dashboard Private Limited (EDPL) is situated at Gurgaon near Delhi. The company supplies dashboard assembly as a 4PL supplier to Maruti Udyog Limited (MUL) since the past three years. There are a number of components in the dashboard such as speedometer, fuel level gauge, etc. EDPL purchases these individual components from various suppliers and assembles them at their factory. It then supplies the finished product to MUL. One of the major components, namely, the “starter switch”, has always been a cause of problem. EDPL does not observe any Systematic Inventory Control Methods in purchasing of various items of inventory. They order the required items of inventory as and when the demands for those inventories arise. At EDPL, dashboards are not available off the shelf. Hence, many times delays occur in arranging for supply of required quantity of assembled dashboard to MUL. This, in turn, results in a substantial financial loss to EDPL since, as per the agreement signed between EDPL and MUL, MUL can levy penalties towards delays in the supply of required quantity of dashboard assembly.
The information gathered from EDPL shows that the annual demand of the item, namely, starter switches, is 5,000 nos. The unit price of the item is Rs. 50/- each. The ordering cost is R. 40/- per order. The inventory carrying cost is 20% of the unit cost of inventory.
Questions:
1) Explain the role of Fourth Party Logistics in the above case
2) Discuss various logistical ways in which EDPL can avoid penalties imposed by MUL
3) Calculate the EOQ for the item under reference from available information. Can this EOQ be used to decide on the levels of stock to be kept at hand? What steps should be taken to avoid faults in the starter switches?