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Subject: Logistic Management: Course: Attempt Any Five Questions (16 Marks Each)

The document discusses key concepts in logistics management including: 1. Physical distribution management (PDM) and its importance as a critical part of overall supply chain management. 2. The four stages of Steven's model of supply chain integration and strategies for supply chain integration. 3. Factors involved in determining warehouse location and its importance for supply chain management. 4. Differences between supply chain management of products vs services and applications of SCM principles in financial services. 5. The two major functions of transportation - product movement and storage. The document provides a framework for understanding core logistics and supply chain management topics.

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282 views11 pages

Subject: Logistic Management: Course: Attempt Any Five Questions (16 Marks Each)

The document discusses key concepts in logistics management including: 1. Physical distribution management (PDM) and its importance as a critical part of overall supply chain management. 2. The four stages of Steven's model of supply chain integration and strategies for supply chain integration. 3. Factors involved in determining warehouse location and its importance for supply chain management. 4. Differences between supply chain management of products vs services and applications of SCM principles in financial services. 5. The two major functions of transportation - product movement and storage. The document provides a framework for understanding core logistics and supply chain management topics.

Uploaded by

Sailpoint Course
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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.
Questions:
1. What are the company’s present logistical problems?

2. 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.
Case 3 (20 Marks)

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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