AMITY SCHOOL OF DISTANCE LEARNINGPost Box No. 503, Sector-44 Noida – 201303 LOGISTICS AND SUPPLY CHAIN MANAGEMENT Assignment A Marks 10 Answer all questions. 1. 2. 3. 4. 5. a) Define Logistics. Discuss and elaborate various components of logistics management. b) Describe the concept of total cost analysis to logistics. a) What is supply chain management? What are the various flows in a supply chain? b) What are the functions and contributions of supply chain management? a) What is meant by customer service? What are its features? b) What are different elements of customer service costs? Explain its fundamental trade-offs. a) Discuss the role of information in overall performance of logistics and supply chain management. b) What are various components of Logistics Information System architecture? How does LIS facilitate improvement in logistics decision making? a) What is inventory? Discuss various elements of inventory costs. b) Define the concept and objectives of MRP and DRP. Assignment B Marks 10 Answer all questions. 1. a) Discuss the nature and scope of storage, warehouse and distribution centres. b) Discuss the various functions of a warehouse from the logistics and supply chain perspective. 2. a) Describe the role of transportation in the success of logistics and supply chain. b) What are the issues that should be considered by a logistics manager in selecting a mode of transport? 3. a) Describe the functions of packaging in LSCM perspective. b) What are the objectives and principles of material handling? 4. Case study: Please read the case study given below and answer questions given at the end Case Study Maruti Udyog-Indian Ethos & Japanese ways Maruti Udyog Limited (MUL), the leading manufacturer of cars in India is a leader in supplier relationship management. Its turnover was Rs 12,481.00 crores and its profit before tax \was 1750 crore in 2005-06. It sold 5, 61,822 vehicles in 2005-06 and captured a market share of over 55 percent. It deals with about 7100 components for its eleven major models. Seventy percent of its suppliers by numbers are located within 100 km radius of its Gurgaon plant. They meet more than 80 percent of Maruti’s requirement by value. it has started a programme to help its suppliers get ISO 14000 certification. Every vendor really tries to make sure that he goes above this mark. At the end of the brainstorming. Genjitsu means discussing under what conditions this has happened – something like a brainstorming session. What are the methods adopted by Maruti to achieve supplier relationship? . it has also started second tier improvement in a very big way. and beautiful. These 80 vendors are considered strategic partners. It organizes Junkai VA or cost workshops with its vendors on an ongoing basis. The spider chart has 22 points. all packing has been converted into reusable packing. lighter. The rest of the vendors supplies only 14 percent. Additional business is promised on the next new model to vendors who score over 60 percent on the spider chart. Maruti has a number of programmes. Through these initiatives Maruti has become more agile and leaner. It conserves the usage of material and yield improvement. It audits the workings of its suppliers and comes out with a spider chart. shorter. This was the latest initiative it took up a year ago. Gembutsu. the rest of the 52 percent by value is supplied by other vendors. and Genjitsu.Maruti has 220 approved vendors who supply the major components. Further. It has also started ‘green initiatives’. a team from Marut. Maruti also has constituted a group called Maruti Centre for Excellence. Questions: 1) 2) 3) 4) What is supplier relationship management? What was Maruti’s objective on supplier relationship? Discuss the kind of relationship Maruti adopted with its vendors. They then have a brainstorming session at the Maruti office. it follows the Kaizen theme. This is a team which continuously goes to suppliers to upgrade them. It has also signed joint ventures with a large number of its vendors. It follows this theme in its plant and has been continuously teaching this practice to its vendors. joint ventures supply only 34 percent. which means to make it smaller. Junkai is a Japanese word which basically means “visiting”. Maruti trained around 16 vendors and ultimately the savings of man hours per day came to 1580 man hours. noting down points. It was able to reduce component costs by 29 percent on the Alto alone from 2001 to 2005. With strategic partners. the idea is that by the time the requirement comes to India. It has lined up with banks to see that the loans of its suppliers are transferred to lower interest rates. they come out with various points relating to improvements in productivity. quality and cost. Gemba means taking a look to see what is happening at the site. which has resulted in a saving of over one crore rupees per annum. then the trucks were sent back. Maruti’s vendors will all be sufficiently equipped to take care of it. fewer. Apart from this. has look around. Maruti take a major role in improving vendor productivity. along with CII and USAID. Though this is not required in India. along with the supplier team visits the supplier’s shop floor. In 2005-06. The top 80 vendors supply 86 percent by value of their purchases. Moreover. It has 3 components called three G.Genmab. if pollution levels were not right. It has also started a programme on ELV compliance. Gembutsu means examining the affected piece to understand what exactly the defect is. Typically. Accordingly. Each vendor is evaluated in these 22 points. Their emphasis is on vendor productivity and quality. This made its vendors understand that Maruti cared about the environment. Only 20 to 30 of them are Maruti joint ventures. The result has been that the second tier vendor’s quality has also gone up. Of the 86 percent components supplied by vendors. It recently introduced a practice to check the pollution levels of all the trucks getting into Maruti. It also has a vendor finance cost reduction programme. Which of the following is not a desired flow in a supply chain a) Forward flow of value b) Flow of goods in both the directions c) Backward flow of cash d) Flow of information in both the directions 8. Carrier performance measures does not include a) Speed b) Claim settlement ratio c) Area of ware house owned d) Frequency 2. repairs. etc b) Customer claims. at the right place in right condition at right price b) To offer best possible customer service for competitive advantage c) To promote the product through the logistic channels d) To minimize total logistics costs 4. Which of the following is not a feature of customer service a) It is reactive process b) Ensures a trade-off between cost and service c) Creates a competitive advantage d) Brings about harmonious relationship with supply chain members 9. Which of the following does not provide a way to create competitive advantage a) Low cost b) Low flexibility c) Superior customer service d) Value added services 6.Assignment C Marks 10 Answer all questions. complaints and returns . All of the following are primary activities in a value chain except a) In bound logistics b) Operations c) Technology development d) Service 7. All of the following are the objectives of logistics except a) To make available the right quantity of material at right quality at right time. The logistics costs in India is ___ percentage of GDP a) 20% b) 13% c) 18% d) 7% 5. Tick Marks (√) the most appropriate answer 1. warranty. All of the following are post transactional customer service elements except a) Installation. Which of the following is not a characteristic of logistics a) It ensures a smooth flow of all types of goods b) It has the ability to meet customer expectations and requirements c) It offers the best possible customer service at any cost d) It deals with movement and storage of goods in appropriate quantities 3. supplying and warehousing materials and information in an enterprise 16. transportation and documentation relating to all suppliers c) Management of demand and supplies at minimum cost but greater customer satisfaction d) Warehousing management 17.c) Stock out level d) Temporary replacement of products 10. Which of the following is not a feature of supply chain a) Supply chain is a network of entities b) The more the number of stages in a supply chain the more will be its complexity c) Supply chain efficiency and effectiveness are the same d) Supply chain profit should be shared equitably by all the chain members e) 13. Which of the following is not a key output of the logistics system a) Creating Competitive advantage b) Time & Place utility c) Creating Proprietary asset d) Increased cash flow 15. A fourth party logistics provider is a) An organization that provides transportation b) An organization that provides warehousing facility . warehousing. Transportation management is a) A small and significant part of SCM b) Too specialized and should be managed separately c) Does not affect customer service d) Forms a major component of costs and should be synchronized to enhance customer satisfaction 18. Logistics stand for a) Whatever is logical and reasonable b) Movement of materials to destinations c) Putting together conclusions logically d) Moving. Supply chain conflicts can be reduced by all of the following except a) Use of power by the dominant partner b) Involvement by investment c) Information sharing d) Transfer of technology and skills 14. Physical distribution in terms of logistics is known as a) Inbound logistics b) Outbound logistics c) In plant logistics d) Reverse logistics 12. Freight charges depends on all of the following except a) Nature of the product b) Value of the product c) Distance to be covered d) Volume/quantity to be shipped 11. Supply Chain Management covers a) Management of suppliers and vendors b) Management of inventories. The internal web of an organization that allows only the internal users to access and share data is called a) Intranet b) EDI c) Extranet d) Internet 21. All are inputs to MRP system except a) Bill of materials b) Inventory status file c) Master production schedule d) ABC analysis file 25. Which of the following is not associated with JIT system a) Waste elimination b) Mass production c) Single piece flow d) Pull system 27. Which of the following is not an inventory related cost a) Receivables b) Ordering cost c) Carrying cost d) Stock-out cost 22. carrying cost and ordering cost can be estimated and is constant b) Half of order quantity is considered as safety stock c) Stock out has no effect d) Quantity discounts does not exist 23.c) An organization that manages inventory and information d) An organization that provides comprehensive supply chain solution 19. Which of the following does not fit into the features of customer service a) Providing customer service at any cost b) Strategic processes that provides value added services c) Creates competitive advantage in the market place d) It reflects corporate vision 20. Which of the following is not an assumption of basic EOQ model a) Annual demand. All are economic function of warehouse except a) Stock piling b) Receiving c) Breaking bulk d) Consolidation . Inventory analysis based on the annual consumption value is called a) ABC analysis b) VED analysis c) FSN analysis d) XYZ analysis 24. All are features of Distribution Resources Planning except a) DRP Deals with finished goods inventory b) DRP operates in an independent demand situation c) DRP is an explosion process d) Inputs to DRP is the distribution networks 26. Intermodal transportation system arising out of the coordination between roadways and railways is known as a) Piggyback b) Fishy back c) Tran-ship d) Express cargo 31. All are principles of material handling except a) First principle b) Mechanization principle c) Flexibility principle d) Energy principle 32. A bonded warehouse is: a) An open stockyard with high walls and other security measures for extra protection of goods stored b) A warehouse in the premises of airport where goods imported by air are kept c) A warehouse where goods on which customs or excise duties have not been paid are kept d) A government warehouse used for storing confiscated goods 35. The charges levied by a municipal corporation a) Sales tax b) VAT c) Octroi d) Excise 29. Penalty charged by a carrier for not clearing a consignment from their warehouse during the allowable time limit is known as a) Damage b) Demurrage c) Liquidated damages d) Penal charges . Which of the following is not a carrier selection determinant a) Transportation cost b) b) Transit time c) Reliability d) Vehicle cost 34. LCL stands for a) Less than normal Cargo Load b) Less than Container Load c) Low Cargo Load d) Less Costlier Load 36. Which of the following is not true for Air Way Bill a) Receipt of goods b) Contract for affreightment c) Negotiable document d) Issued by carrier 33.28. Mode of economic surface transportation for bulk solid material over a long distance is a) Rail b) Road c) Rope ways d) Conveyors 30. 40. Certificate of origin is issued by a) Bank in the exporting country b) Manufacturer c) Chamber of commerce d) The carrier 38. All are related to bullwhip effect except a) It is the amplification of demand variation as one moves upstream in the supply chain b) Forecast errors and lead-time variability add to bullwhip effect c) The phenomena was first noted by Wal-Mart d) The effect can be reduced by information sharing. vendor managed inventory. Which of the following is not an advantage of containerization a) Reduces damages b) Increases investment on handling c) Reduces packaging d) Reduces loss 39. etc.37. All are functions of order processing except a) Order planning b) Order handling c) Order delivery d) Order pending .