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AEREN
FOUNDATION’S Maharashtra Govt. Reg.
No.: F-11724
SUBJECT :Logistics Management
Total
Marks: 80
Case 1 (10
Marks)
Q. 1.
If you are appointed as the logistics consultant, then advise M/s BPL in
respect of ‘
(a) How to achieve economy in
transportation, by maintaining almost same service level?
(b) Demand Forecasting technique to take
care of seasonality, reduction in inventory.
(c) Information technology to substitute
maintenance of high inventory without affecting customerservice level.
(d) Connectivity between factory and depots
(networking Diagram)
Answer: M/s. Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints
for households, commercial premises and industrial application. The main problem
which has been clearly been outlined is the fact that they have overstretched
their distribution way beyond their supplying means. One manufacturing facility
providing 25 distribution centres!!!! - Too much. This has also pumped up their
transportation costs. The best solution i think is to set up 2-3 more
manufacturing facilities in areas i.e Pune facility for the western stores, 1
for northern stores, 1 for southern and the last for eastern. These facilities
will reduce the transportation costs, set in the economies of scale thus
reducing production costs and also help
Case 2
(10 Marks)
In case you are appointed as logistic
consultant to solve the problems, you are required to put forwardyour
suggestions for:
(a) Proper transportation policy to ensure
minimum transportation loss of vegetables and poultry productsand reduction in
the packaging costs.
(b) Demand Forecasting techniques to take
care of the seasonality, reduction in inventory and shortageand other related
problems.
(c) Suggestion for improved Purchase and
Distribution policy.
(d) Is it advisable to have company owned
dedicated transport fleet?
Answer: ABCL Ltd. Is leading/ Fast Food Processing Company operating from Thane.
It is involved in the fast food business since last 10 years and has tie up
with a foreign firm operating in the same field. It handles both Vegetable as
well Non—Vegetable products for which it arranges the vegetables and chickens
from the local vegetable vendors and poultry farms as well as from far off
places like Nasik, Pune and Aurangabad. It has very good market in Mumbai, Pune
and surrounding cities.
(a) Transportation and storage problems are identified as
Case 3
(10 Marks)
Q. (1) Evaluate the alternative solution
that could be considered by Mr. Mohan.
Answer:Mumbai Flour mills, provide high-quality bakery flours to commercial
bakers as well as to the consumer market. The commercial buyers have consistent
demand and brand-loyalty, whereas consumers have minimal brand-loyalty but also
generally prefer known names over store brands.
Demand is seasonal for the flours with the annual break occurring just
before Diwali and slacking off dramatically during January and February. To
offset these both, Mumbai Flour Mills and its major supermarket chain-accounts
carry out special deals and sales promotions.
The Production planning Dept. of the company
located at Akola, Maharashtra, has the responsibility for controlling the
inventory levels at the plant warehouse at
Q. (2) What additional solution do you
propose?
Answer:Reduction: Whereas DON-infected wheat kernels can be
identified and removed in the wheat cleaning process, other forms of microbial
contamination cannot be seen. Several treatments of wheat during the cleaning
process are being investigated and researched to determine their effectiveness
in lowering the microbial load of flour.
One processing method that has proven
effective is aggressive scouring or abrasion of the wheat to remove the outer
layers of bran prior to milling.
Q. (3) Examine the transportation system
and its drawbacks?
Answer:Recently the company has experienced two major stock out for its
consumer-size 5 Kg. sacks of refined quality white flour. One of these was due
to problems in milling operations, the other occurred when marketing initiated
a “buy one, get one free” coupon promotion. Since these events, the planning
has become overly cautious and errs on the side having excess inventories at
the distribution centres. Additionally, two other events have affected
Distribution Centre’s throughput:
(1) implementation of direct factory supply
for replenishing the five largest super market chains, and (2) a price increase
making Mumbai Flour more expensive
Case 4
(10 Marks)
(i) Examine the possibility of alternatives
in transportation of the inbound and outbound materials?
(ii) How to reduce the cost of inbound and
outbound logistics functions?
(iii) What could be the major problem in
exploiting the inbound and outbound logistic functions?
(iv) Is it advisable to have dedicated
transport system to operate packaged materials mainly for thecompany?
(v) What arrangements have to be made to
ensure the service quality for customers?
Answer:M/s Modern Garments is the manufacturers of Ladies and Gents garments
like shirts, tops and undergarments etc. The technology is advanced and there
are several players with access to such latest technologies. The supply chains
for M/s Modern Garments includes significant purchases of raw material,
stitching, packaging and supply to customers. The logistics functions are the
key competitive elements in the market, M/s Modern
(ii) How to reduce the cost of inbound and
outbound logistics functions?
A Collaborative Resource
Because of their unwieldy size, and lengthy
preparation and printing time, many routing guides are already outdated by the
time they are distributed. In an attempt to stay current, some shippers issue
supplements and revised pages throughout the life of the guide.
As cumbersome and impractical as this process
is for the issuers, it is at least as painful for the recipient. Neither buyer
nor seller can deploy changes quickly, or even place the changes into a
workable process. If getting the information out on time is impossible, it is
equally impossible to take advantage of significant transportation
opportunities that are available throughout the shipment's entire life.
(iii) What could be the major problem in
exploiting the inbound and outbound logistic functions?
Inbound logistics refers to the transport,
storage and delivery of goods coming into a business. Outbound logistics refers
to the same for
(iv) Is it advisable to have dedicated transport
system to operate packaged materials mainly for thecompany?
Now in the market only garments with good
delivery quality are acceptable. All the competitors have equally good quality
product in the market. Presently the area of logistics distribution, customer
service and satisfaction are the area of prime concern in order to have extra
value addition to the product. The product defects due to stitching, cutting
and transportation are now under increasing scrutiny. From the cost control
point
(v) What arrangements have to be made to
ensure the service quality for customers?
Due to product variations, the order
fulfillment and its processing is of considerable importance. The traditional
information system has become inadequate. There are over 500 retail outlets
through which the finished products are distributed with the help of more than
50 transporters. Lead- time variability is creating problem of buffer stocks•
with distributors. The transit time fluctuations are due to the breakdown of
trucks, improper documentation and unfair practice of over charging of the
vehicles etc. Such variability has to be reduced.
Case 5
(10 Marks)
Q. 1. What are the company’s present
logistical problems?
Answer:‘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
Q. 2. Give your recommendations for
improving the company’s logistical performance?
Answer:Fierce competition in today’s market has forced business enterprises to
invest in and focus on supply chains. The growth in telecommunication and
transportation technologies has led to further growth of the supply chain. The
supply chain, also known as the logistics network, consists of suppliers,
manufacturing centers, warehouses, distribution centers and retail outlets, as
well as raw materials, work-in-process inventory and finished products that
flow between the facilities.
The logistics management takes into
consideration every facility that has an impact on cost. It plays an important
role in making the product
Case 6
(10 Marks)
Q. 1. Identify the main logistical problems
of the Company
Answer: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.
Q. 2. To offer better customer service
level and reduce the operating cost, how will you go aboutredesigning the
distribution network?
Answer: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
Case 7
(10 Marks)
Q. 1. What is the main problem in this
case? What are your suggestions to the company on inventorymanagement?
Answer: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 in 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
Q. 2. What type of logistical cost approach
you would suggest to the company?
Answer:Intrafunctional logistics focuses on the coordination of the inbound
logistics and material management as well as cost efficient distribution while
supporting the customer service’s goals. All of these activities are
coordinated in many different ways and often logistics managers use the total
cost approach to find the most cost effective solutions.
The total cost approach is generated the idea
that all activities that are found within the moving and storing of goods and
products need to be thought of as a whole, their total cost. It uses cost
trade-offs, when logistics expenses may increase in one area
Case 8
(10 Marks)
Q. 1. What are the main problems in the
logistical network of M/s. Compu-Tech?
Answer: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
Q. 2. What solutions would you propose of
overcome these problems?
Answer:To see lean perfected – study the NASCAR pit. In a matter of seconds, the
pit crew has changed tires, wiped down the windshield, filled up fuel, and
given the driver a drink of water. Everything is in the right place at the
right time. If only every distribution center would run that smoothly. What’s
clear is that mastering inventory levels is central to the equation of
eliminating waste, but inventory management is becoming a vexing problem for
some organizations – compounded by multi-channel distribution, inadequate
demand forecasting, and a lack of communication among appropriate parties.
Dear
students get fully solved assignments
Send
your semester & Specialization name to our mail id :
“
help.mbaassignments@gmail.com ”
or
Call
us at : 08263069601
(Prefer
mailing. Call in emergency )
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