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Distribution & Logistics Management (V3)

Assignment A
1 . Explain the concept of Logistics Value Proposition.
2 . What are the different dimensions of product quality? Explain all the
dimensions.
3 . Explain the different Non Operating intermediaries in the transportation
industry.
4 . Write a brief note on the various categories of transportation cost.
5 . What are the different service benefits a warehouse can provide?
6 . Explain briefly the different components of ERP system.
7 . Discuss the challenges related to low cost sourcing.
8 . Discuss the various basis on which the fixed overhead cost is allocated?

Assignment B

Case Detail :
An automotive ancillary unit supplier performs a milk run twice a day to five large
manufacturers located within a radius of 30 kilometers. Two trucks had been leased
so far. The rental per day per truck is Rs. 10,000/-. This includes all
transportation costs. The unit is planning to buy two trucks to ensure timely
delivery and reliability. Each mini truck is likely to cost Rs. 4,00,000/- and will
incur a daily running cost of Rs. 3500/- per truck.
1. What will be your recommendation to the unit regarding the purchase of
trucks?
2. Justify your decision.
3. You may make suitable assumptions but state them explicitly.

Assignment C
1. Which of the following is true for supply chain management?
The physical material moves in the direction of the end of chain
Flow of cash backwards through the chain
Exchange of information moves in both the direction
All of the above

2. The sequence of a typical manufacturing supply chain is

StorageSuppliermanufacturingstoragedistributorretailercustomer
SupplierStorage-manufacturingstoragedistributorretailercustomer
SupplierStorage-manufacturing distributorstorageretailercustomer
SupplierStorage-manufacturingstorage retailerdistributorcustomer
3. The purpose of supply chain management is
provide customer satisfaction
improve quality of a product
integrating supply and demand management
increase production
4. Logistics is the part of a supply chain involved with the forward and reverse
flow of
goods
services
cash
all of the above
5. Due to small change in customer demands, inventory oscillations become
progressively larger looking through the supply chain. This is known as
Bullwhip effect
Netchain analysis
Reverse logistics
Reverse supply chain
6. VMI stands for
Vendor material inventory
Vendor managed inventory
Variable material inventory
Valuable material inventory
7. The major decision areas in supply chain management are
location, production, distribution, inventory
planning, production, distribution, inventory
location, production, scheduling, inventory
location, production, distribution, marketing

8. Distribution requirement planning is a system for

Inventory management
Distribution planning
Both a and b
None of the above
9. Reverse logistics is required because
Goods are defective
Goods are unsold
The customers simply change their minds
All of the above
10. 3-PL stands for
Three points logistics
Third party logistics
Three points location
None of the above
11. Single-sourcing has a number of advantages. Which of the following is NOT an
advantage of single sourcing?
Better communication.
Strong durable relationships with individual suppliers.
Dependency encourages more commitment and effort.
Wide sources of knowledge and expertise to tap.
12. Multiple-sourcing has a number of advantages. Which of the following is NOT an
advantage?
Sources can be switched in case of supplier failure.
The purchaser can drive down prices through competitive tendering.
More scale economies.
A wider source of knowledge and expertise is available.
13. All the operations that are linked together to provide goods and services to
the end customer are called:
The Supply Network
The Supply Chain
The Supply Chain Pipeline
The Distribution Chain
14. The emphasis on understanding the end customer in a supply chain has led to
some authorities objecting the term supply chain. Instead they argue they should
be referred to as:
Push chains
Customer chains
Demand chains
Pull chains
15. Which of the following is NOT a disadvantage of single-sourcing?
The buyers firm is more vulnerable to disruption if a supply failure occurs.
Less easy to develop effective SQA.
The supplier might force up prices if no alternative source is available.
A single supplier is more affected by fluctuations in volume.
16. A linkage of operations that provide goods and services through to the end
customer is called:
The Supply Chain
The Logistics Network
The Information Chain
The Demand Chain
17. If total sales for a company are 10,000,000 the cost of purchase goods and
services is 7,000,000 salaries are 2,000,000 and overheads are 500,000, profits
can be doubled by:
Decreasing overheads by 100%
Decreasing purchasing costs by 7.1% and salaries by 25%
Increasing sales revenue by 100%
All of the above
18. Which of the following relates to the short-term ability to supply?
Willingness to share risk
Potential for innovation
Technical capability
Dependability of supply
19. Which of the following is considered an impact of e-procurement?
It drives efficiency, opens up the market to competition, and improves the ability
to manage suppliers
It opens up the marketplace to increased competition, but limits the ability to
manage suppliers
It promotes efficiency improvements, opens up the market to increased competition,
and increase long-term costs
It reduces transaction costs, promotes efficiency and reduces competition in the
marketplace
20. In attempting to reduce inventory in the supply chain as a whole, the supply
chain manager must focus attention on:
Bottle neck businesses
End customers
First-tier suppliers
A-class products
21. The idea of identifying waste along the whole supply chain, especially in the
form of unnecessary inventory, is the basis of what concept?
Effective supply chain
Lean supply chain
Focused supply chain
Aggregate supply chain
22. What is the well-accepted term for the function that deals with the operations
interface with its supplier markets?
Logistics
Materials management
Physical distribution management
Purchasing and supply management
23. What is the term commonly used to refer to the extension of physical
distribution management?
Logistics
Downstream supply management
Distribution flow management
Materials management
24. When a customer has queued for a certain period of time and becomes so fed up
they leave the queue, this is called:
Queue discipline
Baulking
Rejecting
Reneging
25. If a customer refuses to join a queue and wait for a service, this is called:
Rejecting
Baulking
Queue discipline
Reneging
26. When capacity is relatively fixed, services are sold in advance, and the
marginal cost of making a sale is relatively low, which of the following capacity
plans may be most appropriate?
Yield management
Chase demand plan
Level capacity plan
Mixed plans
27. When all three pure capacity plans are used in combination, this called a:
Composite plan
Composite strategy
Aggregate strategy
Mixed plan
28. What type of capacity plan focuses on the demand side rather than supply side
of the capacity equation?
Level capacity plan
Aggregated capacity plan
Demand management
Chase demand plan
29. Utilisation is measured by:
Actual output / Design capacity
Effective capacity / Design capacity
Actual output / Effective capacity
Design capacity / Actual output
30. In demand management approaches, the objective of promotions and price
reductions is usually to:
Increase off-peak demand
Increase peak demand
Reduce off-peak demand
Reduce peak demand
31. High process utilisation, high productivity, and low unit costs are associated
with which capacity plan?
Demand management
Level capacity
Aggregated demand
Chase demand
32. For a hospital, which of the following is NOT an output measure of capacity?
The number of items sold in the hospital shop.
The number of beds available.
The number of patients treated by the A&E department .
The number of scans provided.
33. Which of the following approaches best illustrates demand management in an
artificial ski slope?
Opening longer hours with the use of floodlights at peak time.
Increasing the speed of the tow bar in order to cope with more customers per hour.
Increasing the number of ski instructors at peak time.
Reduced prices for parties during the summer.
34. For a sports equipment manufacturer the long-term outlook is that demand will
exceed capacity and in the short-term demand equals capacity. What decision should
the operations manager take about recruitment and training of new operatives?
Hire staff and make product for inventory.
Delay action.
Make product for inventory.
Work overtime and hire temporary staff.
35. An organisation which aims to produce stable employment patterns and high
process utilisation is more likely to adopt:
Demand management
A level capacity plan
A chase demand plan
None of the above
36. In order to better serve its customers, a retail store will need to have
information on the:
store inventory level.
past data on customer demand.
supply lead time.
store inventory level, customer demand data & supply lead time
37. Which functional role does IT not play in SCM?
Performance measurement and reporting
Collaboration and coordination
Supply chain restructuring
Transaction execution
38. IT in supply chain transaction execution is concerned with:
measurement of the supply chain performance through data analysis tools.
enabling managers to process and evaluate SCM-related decisions using different
optimization techniques.
cooperation and collaboration with suppliers, partners, etc. via the internet.
collection, generation, and storage of vast data and tracking of the same through
automated means.
39. IT in supply chain decision support is concerned with:
collection, generation, and storage of vast data and tracking of the same through
automated means.
cooperation and collaboration with suppliers, partners, etc. via the internet.
measurement of the supply chain performance through data analysis tools.
enabling managers to process and evaluate SCM-related decisions using different
optimization techniques.
40. IT in supply chain measurement and reporting is concerned with:
measurement of the supply chain performance through data analysis tools.
enabling managers to process and evaluate SCM-related decisions using different
optimization techniques.
collection, generation, and storage of vast data and tracking of the same through
automated means.
cooperation and collaboration with suppliers, partners, etc. via the internet.

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