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Question Paper for 3rd Sem Essays

Birla Institute of Technology & Science, Pilani Distance Learning Programmes Division First Semester 2008-2009 Comprehensive Examination (EC-2 Regular) Course No. Course Title Nature of Exam Weightage Duration Date of Exam Note: 1. 2. 3. 4. : QMJ ZG621 : SUPPLY CHAIN MANAGEMENT : Open Book : 60% : 3 Hours : 28/09/2008 (AN) No. of Pages =2 No. of Questions = 7 Please follow all the Instructions to Candidates given on the cover page of the answer book. All parts of a question should be answered consecutively. Each answer should start from a fresh page.
Leave about one inch margin space on all four sides of the answersheet. Mobile phones and computers of any kind should not be used inside the examination hall. Q. 1 Discuss how you would set up a collaboration mechanism for the enterprises in a supply chain. [5] Q. 2 Consider a supermarket deciding on the size of its replenishment order from Proctor & Gamble. What costs should it take into account when making this decision? [8] Q. 3 Weekly demand for Motorola cell phones at Best Buy store is normally distributed with a mean of 300 and a standard deviation of 200.
Motorola takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should Best Buy carry? What should their ROP be? [F-1(0. 95) =1. 643] [6] Q. 4 The Knitting Company (TKC) planning for its four styles those are popular during Christmas. All four styles have demand that is normally distributed. The bestselling style has an expected demand of 30,000 and a standard deviation of 5,000. Each of the other three styles has an expected demand of 8,000 with a standard deviation of 4,000.
Currently all sweaters are produced before the start of the season. Production cost is $20 per sweater and they are sold for wholesale price to $35. Any unsold sweaters at the end of the season are discounted to $15 and they all sell at that price. It costs $2 to hold the sweater in inventory for the entire season if it does not sell. How many sweaters of each type should TKC manufacture? TKC is considering the postponement of knitting and using very flexible machines. This will require the base sweaters to be made in advance (identical for each of the four types) and the final patterns to be knit later.
This will increase production cost per sweater to $21. 40. How many sweaters should TKC manufacture with postponement to maximize the profit? [F-1(0. 6818) = 0. 47; F-1(0. 6181) = 0. 3] [10] Q. 5 (a). Q. 5 (b). Discuss key drivers that may be used to tailor transportation. How does tailoring help? For a manufacturer that sells to many retailers, why does a quantity flexibility contract result in less information distortion than a buy-back contract? [5 + 5 = 10] QMJ ZG621 (EC-2 REGULAR) FIRST SEMESTER 2008-2009 PAGE 2 Q. 6 (a). Demand for hairdresser is much higher over the weekend, when people are not at ork. What revenue management techniques can be used by such a business? [5] Q. 6 (b). What types of industries would be most likely to choose a best of breed approach to their IT systems? What types would be more likely to choose a single large integrated solution? [5] Q. 6 (c). What problems result if each stage of a supply chain views its demand as the orders placed by the downstream stage? How should firms within a supply chain communicate to facilitate coordination? [5] Q. 7 How could Dell use collaborative forecasting with its suppliers to improve its supply chain performance? [6] ************

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