BA5030 Supply Chain Management Department of MBA 2019-2020

OBJECTIVE:
To help understand the importance of and major decisions in supply chain management for gaining
competitive advantage.
UNIT I INTRODUCTION 9
Supply Chain – Fundamentals –Evolution- Role in Economy - Importance - Decision Phases - Supplier-
Manufacturer-Customer chain. - Enablers/ Drivers of Supply Chain Performance. Supply chain strategy -
Supply Chain Performance Measures.
UNIT II STRATEGIC SOURCING 9
Outsourcing – Make Vs. buy - Identifying core processes - Market Vs. Hierarchy - Make Vs. buy
continuum -Sourcing strategy - Supplier Selection and Contract Negotiation. Creating a world class
supply base-Supplier Development - World Wide Sourcing.
UNIT III SUPPLY CHAIN NETWORK 9
Distribution Network Design – Role - Factors Influencing Options, Value Addition – Distribution Strategies
- Models for Facility Location and Capacity allocation. Distribution Center Location Models. Supply
Chain Network optimization models. Impact of uncertainty on Network Design - Network Design
decisions using Decision trees.
UNIT IV PLANNING DEMAND, INVENTORY AND SUPPLY 9
Managing supply chain cycle inventory. Uncertainty in the supply chain –- Analyzing impact of supply
chain redesign on the inventory - Risk Pooling - Managing inventory for short life - cycle products -
multiple item -multiple location inventory management. Pricing and Revenue Management
UNIT V CURRENT TRENDS 9
Supply Chain Integration - Building partnership and trust in SC Value of Information: Bullwhip Effect -
Effective forecasting - Coordinating the supply chain. . SC Restructuring - SC Mapping -SC process
restructuring, Postpone the point of differentiation – IT in Supply Chain - Agile Supply Chains -Reverse
Supply chain. Agro Supply Chains.
TOTAL: 45 PERIODS
OUTCOME:
Ability to build and manage a competitive supply chain using strategies, models, techniques and
information technology.
REFERENCES :
1. Janat Shah, Supply Chain Management – Text and Cases, Pearson Education, 2009.
2. Sunil Chopra and Peter Meindl, Supply Chain Management-Strategy Planning and Operation, PHI
Learning / Pearson Education, Sixth edition, 2015.
3. Ballou Ronald H, Business Logistics and Supply Chain Management, Pearson Education, 5th Edition,
2007.
4. David Simchi-Levi, Philip Kaminsky, Edith Simchi-Levi, Designing and Managing the Supply Chain:
Concepts, Strategies, and Cases, Tata McGraw-Hill, 2005.
5. Altekar Rahul V, Supply Chain Management-Concept and Cases, PHI, 2005.
6. Shapiro Jeremy F, Modeling the Supply Chain, Cengage, Second Reprint , 2002.
7. Joel D. Wisner, G. Keong Leong, Keah-Choon Tan, Principles of Supply Chain Management- A
Balanced Approach, South-Western, Cengage, 2012.
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 Course Outcomes (COs):
Units

No. Description covered

Ability to understand the basics of Supply chain and how it has been evolved
from purchasing management, Gives the knowledge about their role and
CO249 importance of Supply chain, also different phases of SC, Drivers acting as
backbone for maintaining productivity. It gives you strategy and metrics to
.1 measure the performance 1
Decision for in house or outsource production can be studied in detailed, to
CO249 identify the core process to have effective supply chain. It gives information
regarding supplier selection and sourcing and also to have contract negotiation
.2 for regular supply 2
To realize the importance of planning a network in Supply chain, also to give
CO249 detailed concepts of distribution network and factors influencing those
networks , the models for facility and capacity allocation and also the ways to
.3 have a optimized model to manage the flows. 3
CO249 The level of inventory maintenance and location as well as prizing and
revenue can be analyzed. Gives the impact of supply chain redesign on the
.4 inventory and risk pooling 4
To understand the organization structure as alliance and partnership and role of
IT in Supply chain management. It gives the application of IT in logistics with
CO249 its benefits. Concepts of bullwhip effect will help coordination of SC. Gives
necessary condition for SC restructuring, mapping and process restructuring
.5 and point of differentiation. 5
Attainment of POs and PSOs through COs (Legends : 1 – Low , 2 – Medium, 3 – High)

3PSO
PO1

PO2
PO3

PO4

PSO1

PSO 4
PSO2

5
PO5

PSO
BA7206

CO249 . 1 2 2 1 2 1 2 1 1 2 1

CO249 . 2 2 2 2 2 2 2 1 2 2 2

CO249 . 3 2 2 2 1 2 1 2 2 1 1

CO249 . 4 2 2 1 2 1 2 1 1 2 1

CO249 . 5 1 1 1 1 1 1 1 1 1 1

S. No Knowledge Level UNIT Course Outcomes

1 U, Ap & An Introduction CO249.1
2 U, Ap & An Strategic Sourcing CO249.2
3 U, Ap & E Supply Chain Network CO249.3
4 U, Ap & An Planning Demand, Inventory & Supply CO249.4
5 U, Ap & An Current Trends C0249.5
R – Remember, Ap – Apply, An – Analyze, U- Understand, E-Evaluate, C-Create

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UNIT-I
Part-A
1. What is supply chain strategy?(Mar-2017)(Dec-2012)
A Supply chain Stratergy determines the nature of procurement of raw materials,
transportation of materials to and from the company, manufacture of the product or operation
to provide the service, and distribution of the product to the customer, along with any follow
up service and a specification of whether these processes will be performed in house or
outsourced. Overall it gives the ways to be efficient or responsive supply chain.
2. List out any two importance of supply chain.(Dec-2012)
To avoid loss of inventory anywhere in the supply chain would result in loss of value
To have effective control of inventory
To have visibility of inventory gains
control distribution cost while improving productivity
3. What are the scope of strategic supply chain management?
Strategic supply chain management, the decision process covers four phases (i) A supply
chain strategy is defined, which includes a market strategy, the stages in the supply chain,
and functions to be outsourced. (ii) Regions for the facilities are identified, with the
potential role and approximate capacity of each facility. (iii) Desirable potential facility
sites within each region are selected. (iv) The exact location and capacity of each facility
is defined.
4. Define SCM. (Sep 2017) (Mar-2017) (Mar-2015)
Supply chain management (SCM) is the oversight of materials, information, and finances
as they move in a process from supplier to manufacturer to wholesaler to retailer to
consumer.
Supply chain management involves coordinating and integrating these flows both within
and among companies. It is said that the ultimate goal of any effective supply chain
management system is to reduce inventory (with the assumption that products are
available when needed).
5. What are all the objectives of Supply Chain Management?(Nov-2016,Mar-2016)
o Maximize overall value created
o Supply chain value: difference between what the final product is worth to the customer
and the effort the supply chain expends in filling the customer’s request
o Value is correlated to supply chain profitability (difference between revenue generated
from the customer and the overall cost across the supply chain
6. What is Push or Pull processes of Supply Chain Management?
Processes in a supply chain are divided into two categories depending on whether they are
executed in response to a customer order (pull) or in anticipation of a customer order (push)
7. List the drivers of SCM. (Sep 2017, Aug 2015)
Facilities Information
Inventory Sourcing
Transportation Pricing

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8. What are the basic problems in SCM? Managing

safety and quality products Difficult to manage
global supply chain needs
Shorter product life cycle and changing marketing demands.
Access to new technology
Managing supplier and inventory.
9. Define Cycle time in SCM?
The total time it would take to satisfy a customer order if all inventory levels were zero. It
is calculated by adding up the longest lead times in each stage of the cycle.
10. List the Six elements of SCM Strategy.
Leverage
Communication
Efficiency
Innovation
Risk management
Continuous improvement
11. What are decision phases in supply chain management?( Mar-2016,Aug 2015)
Supply chain strategy or design
Supply chain planning
Supply chain operation
12. What is efficient Supply chain?
Supply chain efficiency is defined as the Scenario where the company’s processes are
harnessing resources in the best way possible, whether those resources are financial,
human, technological or physical and the resources are not wasted at any form and cost.
13. What is responsive Supply chain?
Responsiveness can be defined as the ability of the supply chain to respond purposefully
and within an appropriate timeframe to customer requests or changes in the marketplace.
14. What is competitive strategy?
A company’s competitive strategy is the set of customer needs that it seeks to satisfy
through its products and services, relative to its competitors.
15. What is cycle view in SCM?
The processes in a Supply chain are divided into a series of cycles, each performed at the
interface between two successive stages of a supply chain.
16. What is Replenishment cycle?
The Replenishment Cycle occurs between the retailer and the distributor or wholesaler
and includes all processes for replenishing retail inventory: retail order entry, fulfillment,
and receipt. This cycle begins with the retail order trigger, which is a policy that starts the
replenishment order placement.
17. What are all the Sub process existing in each stage of Supply chain process?
Supplier stage market product Buyer stage receives supply
Buyer stage places order Buyer returns reverse flows to
Supplier stage receives order supplier or third party
Supplier stage supplies order

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18. What is Supply chain performance? (Mar-2015)

Supply Chain Performance refers to the extended supply chain's activities in meeting
end-customer requirements, including product availability, on-time delivery, and all the
necessary inventory and capacity in the supply chain to deliver that performance in a
responsive manner.
19. List the types of SC uncertainties.
we classify uncertainty in the supply chain context as upstream (supply) uncertainty,
internal (process) uncertainty, and downstream (demand) uncertainty.
20. Give the Implied demand uncertainty spectrum with example?

Part-B

1. Explain the various drivers in supply chain with examples?/ Explain the frame work for
structuring drivers? (May-2015, Dec-2010, Sep-2017, Mar-2017)
2. Describe the various performance measures to be considered in supply chain. (May-
2015)/ Define the key metrics that track the performance of supply chain in terms of
each of the supply chain drivers. /Discuss the role of each supply chain drivers in
creating stratergic fit between the Supply chain stratergy and competitive
stratergy(Mar-2015, Aug
2015)
3. Distinguish between logistic and supply chain. (Nov-2016, Dec-2014)
4. Discuss the impact of effective performance of logistic and supply chain management?
5. Describe the elements of supply chain relationships? (Dec-2012)
6. Describe the cycle and pull/push views of supply chain with suitable examples. (Dec-
2010,Mar-2016)
7. Describe the fundamental similarities and differences between procurement,
manufacturing support and physical distribution performance cycles as they relate to
logistics control with suitable examples. (Dec-2010)
8. What does companies need to do to achieve strategic fit between supply chain and
competitive strategies?(Mar-2016,Dec-2010)
9. Discuss the goal of a supply chain and explain the impact of supply chain decisions on
the success of a firm.(Sep-2017)
10. Identify the three key supply chain decision phases and explain the significance of each
one.(Mar-2017)
11. Explain the frame work for structuring drivers?
12. Compare and contrast efficient and responsive supply chain with respect to various
drivers of SCM.
13. Discuss the role of Supply Chain Management in Economy?

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UNIT-II

PART-A
1. Define outsourcing. (Nov-2016,May-2015, Dec-2014)

Outsourcing is a practice used by different companies to reduce costs by transferring

portions of work to outside suppliers rather than completing it internally. Outsourcing is
an effective cost-saving strategy when used properly. It is sometimes more affordable to
purchase a good from companies with than it is to produce the good internally.
2. What is make or buy decision? (Sep-2017, Dec-2014)
A make-or-buy decision is the act of choosing between manufacturing a product in-house
or purchasing it from an external supplier. In a make-or-buy decision, the two most
important factors to consider are cost and availability of production capacity.
3. What is sourcing?
In business, the term word sourcing refers to a number of procurement practices, aimed at
finding, evaluating and engaging suppliers for acquiring goods and services:
process of contracting a business function to someone else
In sourcing, a process of contracting a business function to someone else to be
completed in-house
Global sourcing, a procurement strategy aimed at exploiting global efficiencies in
production
4. What is In sourcing?
In-sourcing is the utilization of professionals from another company employed as a
turnkey global extension of a company’s workplace and workforce, without transferring
the project management and decision-making control to an outside provider
5. What is Supplier Evaluation?
Supplier evaluation is a term used in business and refers to the process of evaluating and
approving potential suppliers by factual and measurable assessment. The purpose of
supplier evaluation is to ensure a portfolio of best in class suppliers is available for use.
Supplier evaluation is also a process applied to current suppliers in order to measure and
monitor their performance for the purposes of reducing costs, mitigating risk and driving
continuous improvement.
6. What is mean by supplier quality management?
Supplier quality management has emerged as one of the leading business

practices in the past few years. World-class manufacturers are making significant
investments in systems and processes to improve supplier quality.
7. What is World-Class Supply Base?
A world class supply manager proactively improving processes with the long internally
focused, but concentrates on proactively improving process with the long- term goal of
upgrading the competitive capability of the firm and firm’s supply chain.
8. What is world wide sourcing?( Sep-17)
World wide sourcing is the practice of sourcing from the global market for goods and
services across geopolitical boundaries. world wide sourcing often aims to exploit global
efficiencies in the delivery of a product or service. These efficiencies include low cost
skilled labor, low cost raw material and other economic factors like tax breaks and low
trade tariffs.
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9. What is supplier development?(Mar-2017)

Supplier Development is the process of collaborating with suppliers to improve their
processes and product manufacturing capabilities.
10. List the advantage of worldwide sourcing? (Mar-2017)
o Low cost manufacturing
o Tapping skills and resources that are not available in the home nation
o Seeking the benefit of alternate suppliers
o Utilizing an efficient supply chain management systems
o Learning global business skills
o Meeting competition prudently and efficiently
11. What is Sourcing Strategy?
Strategic Sourcing is a disciplined approach that improves the value we receive from
suppliers. It understands the market you are purchasing from inside and out and learning
from your own organization and your supplier’s organizational processes, working as a
mediator between suppliers and your organization, and capturing information and using it
to improve relationships. It requires two-way continuous improvement process work
from each organization.
12. Give the steps in implementing Strategic Sourcing.
Research the industry economics and dynamics of team’s assigned commodity
Evaluate sourcing strategies and supplier’s capabilities.
Structure the supply relationship jointly with suppliers and develop action plans
to build the required infrastructure.
Implement the plan and organize for continuous improvement.
13. List the factors affecting make or buy decision.
Volume of Production Secrecy or Protection of
Cost Analysis Patent Right
Utilization of Production Fixed Cost
Capacity Availability of competent
Integration of Production suppliers or vendors
System Quality and reliability
Availability of Manpower of vendors
14. What is Co- sourcing?
The combining of services from within and outside a business to achieve the
same goal. Outsourcing can fill in Internal expertise and save businesses time, money,
and effort in recruiting additional staff.
For example, an organization might develop software partly in-house and outsource part
of the development to an outside organization.
15. How can you identify the core process through business process route?(Mar-2015,
Mar-2016)
For any firm , there exist three core and high level business processes include customer
relationship, product innovationand supply chain mangement. CRM focuses on acquiring
new customer, product innovation helps developing new product and services , while
SCM focuses on order fulfillment. It is upto the company to decide insource or outsource
the process activities.

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16. How is a supply base reduction done through competency staircase approach?(Mar-
2016)
This method requires suppliers to successfully navigate a succession of
performance mile stone improvements to remain in the supply base. Supplier must pass a
series of hurdles, which is analogues to climbing a staircase. First, all suppliers must meet
a buyer’s basic quality standards for consideration as potential suppliers. Each hurdle
successfully navigated brings the supplier one step closer to its ultimate goal of
remaining in the buyer’s supply base.
17. List the factors considered while scoring the supplier.
Replenishment lead time Pricing terms
On-time performance Information coordination
Supply flexibility capability
Delivery frequency Exchange rates , taxes and duties
Supply quality Supplier viability.
Inbound transportation cost
18. List the various types of auction u are aware.
Sealed bid auction. Dutch auction
English auction Vickrey auction
19. What is Buyback contract?
A buyback or returns clause in a contract allows a retailer to return unsold inventory up to
a specified amount, at an agreed –upon price.
20. What are all the need/advantages of Outsourcing?( Aug 2015)
Focus on Other Business Aspects Meet Customer Demand
Minimize Overall Costs More Flexibility
21. List the various methods for supply base optimization.(Mar-2016)
Competency staircase Triage approach
approach 20/80 approach
Improve or else approach
22. What are the benefits of postponement of production in supply chain?(Aug 2015)
Reduction finished product inventory
Being able to meet individual customized requirement
Achieving economies of scale in production.
Economies of scope in developing multiple products from a single design
PART-B
1. What are the various types of purchasing strategies?
2. Explain worldwide sourcing in detail. Or Explain in detail the various purchasing
strategies/ Explain how a world class supplier can be created? (Mar 2017)
3. Discuss factors that affect the decision to outsource a supply chain function/discuss the
underlying theoretical knowledge for make or buy decision. (Mar 2015,Mar-2016)
4. What are the possible benefits and risks of outsourcing or using a third party supplier?
5. Discuss the various steps involved in selecting a supplier.(Mar 2017)
6. Why do we source worldwide and what are the barriers to worldwide sourcing and how
the company can overcome it?(Mar 2015)

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7. "In the era of outsourcing, third party logistics can add value to existing supply chains."
Explain this statement with examples.
8. Discuss the application of make or buy decision in an organization.(Dec-2014)/ Discuss the
make vs. buy decision in sourcing and inventory management.(Nov-2016, Dec-2012)
9. What are the various factors to be considered for supplier scoring and assessment?
Explain. (Mar-2016, Dec-2010)
10. What are some ways that a firm such as Wal-Mart from out sourcing
decisions?(Sep 2017)
11. Describe the impact of risk sharing on supplier performance and
information distortion. (Sep 2017)

UNIT-III
PART-A

1. What do you mean by decision making under uncertainty? (May-2015)

Decisions are made under certainty when perfect information is available and under
uncertainty when one has only partial (or imperfect) information. The term uncertain
under this paradigm is value neutral, i.e. it includes the chance of gain and, conversely,
the chance of damage or loss. Uncertainty leads to risk which is the possibility that
undesirable outcomes could occur.
2. Define decision trees. (Sep2017,Nov-2016, Dec-2014)
Type of tree-diagram used in determining the optimum course of action, in situations
having several possible alternatives with uncertain outcomes. The
resulting chart or diagram (which looks like a cluster of tree branches) displays
the structure of a particular decision, and the interrelationships and interplay between
different alternatives, decisions, and possible outcomes.
3. What is value addition? (Mar 2017, Dec-2012)
A supply chain becomes a value chain when all the participants put exceptional care and
effort into providing value to their direct and and indirect customer and into removing
waste from the project delivery system. In the end, the value delivered in a value chain is
reflected in the profitability of all value chain participants as the value addition
4. What are the factors influencing network design? (Dec-2012)
Strategic factors Local vs. global SC networks – Strategic role of each facility: Offshore
facility, Source facility, Server facility, Contributor facility, Outpost facility and Lead
facility.
Technological factors: technology fixed cost and flexibility
Macroeconomic factors: taxes, tariffs, free trade zones, limits on import, exchange
rates and demand risk.
Political factors: Stability and clarity of legal systems.
Infrastructure: availability of sites and labor, access to transportation
Competitive factors: Positive externalities vs. locating to split the market.
Customer response time and local presence
Logistics and facility costs

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5. Define fill rate. (Dec-2010)

Percentage of customer or consumption orders satisfied from stock at hand. It is
a measure of an inventory's ability to meet demand.
Also called demand satisfaction rate.
6. What is distribution network design?
A distribution network is an interrelated arrangement of people, storage facilities and
transportation systems that moves goods and services from producers to consumers. A
distribution network is the system a company uses to get products from the manufacturer
to the retailer. A fast and reliable distribution network is essential to a successful business
because customers must be able to get products and services when they want them.
7. What is network design or planning?
Network Design determines the physical configuration and infrastructure of the supply
chain. Key decisions are made on the number, locations, and size of manufacturing plants
and warehouses, the assignment of retail outlets to warehouses, etc. At this stage, major
sourcing decisions are also made. The typical planning horizon is a few years.
8. Define value of Clairvoyance.
Value of clairvoyance also known as Value of information (VOI or VoI) is the amount a
decision maker would be willing to pay for information prior to making a decision.

In collaboration with members consisting of manufacturers, logistics / distribution service

providers and software solutions suppliers Supply Chain Council introduced Supply
Chain Operations Reference-model (SCOR). The Supply chain operation reference model
was designed to enable companies to communicate, compare and learn from competitors
and companies both within and outside of their industry. It not only measures supply
chain performance but also effectiveness of supply chain reengineering. Further it has the
ability to test and plan future process improvements.
10. Explain decision making under risk.
Decision-making under conditions of risk should seek to identify, quantify, and
absorb risk whenever possible.
The quantity of risk is equal to the sum of the probabilities of a risky outcome (or
various outcomes) multiplied by the anticipated loss as a result of the outcome.
A firm's ability to absorb, transfer, and manage risk will often define management's
risk appetite; once risks are identified and quantified, decisions may be made as to
what extent risky outcomes may be tolerated.
11. List the factors influencing distribution network design?

o Customer needs that are met

o Cost of meeting customer needs
Customer service components includes,
Response time, Product variety, Product availability, Customer experience, Time to
market, Order visibility, Return ability
12. What is Supply chain Network?(Sep 2017)
A supply chain network shows the links between organizations and how information and
materials flow between these links. The more detailed the supply chain network the more
complex and web like the network becomes.
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13. What is capacity allocation? (Mar 2017)

Capacity allocation problems, which arise frequently in manufacturing systems, include under‐allocation, over‐allocation, and misallocation of capacity. Such problems can originate from either the
demand or the supply side. Where capacity is time‐sensitive, these problems need to be resolved in tandem with other operational issues such as scheduling.

14. What is the role of discounted cash flow analysis in supply chain network design?
(Mar 2015)
Discounted cash flow (DCF) analysis evaluates the present value of any stream of future
cash flows and allows managers to compare different cash flow streams in terms of their
financial value.Supply chain decisions should be evaluated as a sequence of cash flows
over time. DCF helps to decide whether to have efficient or responsive supply chain.
15. What is the relationship between total logistic cost and the number of facilities in the
distribution network? (Mar 2015)

16. Outbound transportation cost per unit tend to be higher than inbound costs. Why?
(Mar-2016)
Outbound transportation may include customized service. Customization will have
high impact on cost.
Mass package is not possible in outbound transportation.
17. Identify uncertainties that influence supply chain performance and network design?
(Mar-2016, Mar-2017).
Demand uncertainty
Supply uncertainty
Process uncertainty
18. What are multiechelon supply chain networks? (Aug 2015)
An echelon is a level or some height. In inventory it is synonymous with the various levels
at which inventory is held, viz., Factory warehouse, Distributor’s warehouse, and at
retailer level. If
Inventory is planned at each level – echelon – independent, it can lead to very high
inventory build-up. This is the way distribution inventory is possibility built-up.
19. Why is capacity allocation important in supply chain?(Aug-2015)
To avoid out of stock
Avoid resource wastage
To avoid discontinuity of work

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20. What is network design or planning?

Network Design determines the physical configuration and infrastructure of the supply
chain. Key decisions are made on the number, locations, and size of manufacturing plants
and warehouses, the assignment of retail outlets to warehouses, etc. At this stage, major
sourcing decisions are also made. The typical planning horizon is a few years.
Part-B
1. Describe the various factors influenzing distribution network design./ Explain the
measures of customer service that are influenzed by the structure of the distribution
network? (Mar-2016)(Nov-2016,Mar-2016,May-2015, Dec-2010)
2. What is a network optimization model? Discuss its applications.(Dec-2014, Mar
2017,Mar 2015)
3. Explain the various distribution network available in supply chain management. (Mar-
2017/ What type of distribution network is typically best suited for commodity items?
(Sep 2017)
4. Discuss the impact of uncertainity on network design(Dec-2012)
5. Explain how network design decisions are made using decision trees.(Dec-2012)
6. Why is it important to consider uncertainty when evaluating supply chain design
decision? Explain.(Sep 2017)
7. Identify factors influencing supply chain network decisions. (Sep 2017)
8. Discuss the advantages and disadvantages of any four of the distribution network design
options.(Mar 2015)
9. Describe the four phases in the framework for network design decisions.(Mar-2016)
10. Explain gravity location model with example(Aug-2015)
Unit-IV
Part-A
1. List the elements of MRP. o Scrap Rate
o Master Production Schedule (MPS)
o Bill of Materials (BOM) o Purchase Order Quantities / Due
o Quantity on Hand (QOH) Dates
o Part Lead Times o Lot Sizing policies for All Parts
o Sales Order Quantities / Due o Safety Stock Requirements
Dates
2. Define inventory. (May-2015)

Inventory is an asset that is owned by a business that has the express purpose of being
sold to a customer. This includes items sold to end customers or distributors. It includes
raw materials, work in process, and finished goods.
3. What is inventory management? (Dec-2014)
The management of inventory is a key concern of all businesses. If a company's
inventory level is too low, it risks delays in fulfilling its customers’ orders. If the
inventory is too high, it is tying up dollars that can be better used in other areas. It also
risks obsolescence and spoilage. Successful businesses keep their inventory turns high,
but also keep their service level at or above the industry standard.
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4. What is safety inventory? (Dec-2012)

Safety stock (also called buffer stock) is a term used by logisticians to describe a level of
extra stock that is maintained to mitigate risk of stock outs (shortfall in raw material or
packaging) due to uncertainties in supply and demand.
5. How is cycle inventory managed? (Dec-2012)
It can be done by proper supplier assistance, proper inventory personnel, controlling lead
time, continuous inventory monitoring the level of inventory, getting help from inventory
consultant or purchase software.
6. What is forward buying? (Dec-2010)
Purchasing goods or raw materials in excess of currentneeds to avail of volume discounts
or to hedge (see hedging) against possible shortages. It can also be seen as, forward
buying occurs when retailers purchase units during a particular period, hold some of them
in inventory, and then sell them in subsequent periods.
7. What is rationing?
Rationing is the controlled distribution of scarce resources, goods, or services, or an artificial
restriction of demand. Rationing controls the size of the ration, which is one's allowed portion
of the resources being distributed on a particular day or at a particular time.
8. What are all the causes of shortage gaming?
Overreaction to backlogs
Neglecting to order in an attempt to reduce inventory
No communication up and down the supply chain
No coordination up and down the supply chain
Delay times for information and material flow
9. Define obnoxion facility Location.
Obnoxious materials are those which may cause harm to the health of human beings and
pollute the environment.Obnoxious facility location deals with the proper placement of
such materials which are preferred to be placed far from the populated area to prevent the
inhabitants from health related issues as caused by such materials.
10. What is CRP?
CRP stands for continuous replenishment program, where Vendor managed inventory
(VMI)arrangement in which either the vendor continuously monitors a
customer'sinventory or customer suppliescurrent inventory data, so that the vendor can
make timely shipments to maintain the customer's inventory at agreed upon levels.
11. What is DDMRP?
Demand Driven MRP is an innovative planning methodology that aligns resources,
working capital and supply chain planning and execution to actual demand. Through
innovative and intuitive approaches and fundamental planning changes DDMRP ends the
compromises and dramatically augments the effectiveness of a company’s planning
organization.
12. List the needs for inventory management in customer order fulfillment.
Increases efficiency
You'll always know where your inventory is.
You'll be able to close every sale possible.
You'll always hit your delivery dates.

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13. List the objective of DDMRP.

Ensure materials are available for production and products are available for delivery
to customers.
Maintain the lowest possible material and available product levels.
Plan manufacturing activities, delivery schedules and purchasing activities.
14. List the benefits of DDMRP.
Superior FLOW – Increased Return on Average Capital Employed (RACE)
30-45% less cash tied up in inventory
Near flawless fill rates
Minimal expediting costs
Minimal shortages/back orders
Increased sales
15. Discuss some of the ways that inventory can be reduced in the supply chain. Ways to
reduce inventory in the supply chain include, but are not limited to, smaller, more
frequent orders; the use of premium transportation; demand-pull (think of Dell
Computers), as opposed to supply-push, replenishment; the elimination or consolidation
of slower-moving products.
16. What are the objectives of inventory management? (Nov-2016)
To keep inventory at sufficiently high level to perform production and sales activities
smoothly.
To minimize investment in inventory at minimum level to maximize profitability.
To ensure that the supply of raw material & finished goods will remain
continuous so that production process is not halted and demands of customers are
duly met. To minimize carrying cost of inventory.
To keep investment in inventory at optimum level.
To reduce the losses of theft, obsolescence & wastage etc.
To make arrangement for sale of slow moving items.
To minimize inventory ordering costs.
17. What is risk pooling?(Sep 2017,Mar-2017,Mar-2016,Aug 2015)
Risk pooling suggests that demand variability is reduced if one aggregates demand across
locations.. this is true since, as we aggregate demand across different locations, it
becomes more likely high demand from one customer will be offset by low demand from
another. This reduction in variability allows a decrease in safety stock and therefore
reduces average inventory.
18. What is pricing and revenue management? (Sep 2017)
Pricing is a factor that gears up profits in supply chainthrough an appropriate match of
supply and demand. Revenue management can be defined as the application of pricing to
increase the profit produced from a limited supply of supply chain assets
19. Why does the inventory in a system increase with an increase in stock points in the
system?(Mar-2015)
To reduce uncertainty in demand
To reduce lead time
To avoid out of stock

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20. How optimum order level is determined for short life cycle products? (Mar-2015)

Determine the optimal number of replenishments and replenishment quantities based on

trade-of between inventory carrying cost, and fixed costs in ordering and transportation.
21. What is cycle inventory?( Aug 2015)
Cycle stock is the average amount of inventory a business needs to meet customer
demand between the times it orders more inventory from suppliers. A company goes
through its cycle stock inventory as it sells products and restocks inventory.

Part-B
1. Explain how to plan the network in decision making under risk condition.(May-2015)
2. Explain why dynamic pricing provides higher profits compared to fixed pricing?(Mar-
2016)
3. Explain the various inventory related metrics and their measurement.(Aug 2015)
4. Explain the impact of supply uncertainty on safety inventory.(Aug 2015)
5. What type of distribution network is typically best suited for commodity items?(Sep 2017)
6. Identify factors influencing supply chain network decisions. (Sep 2017)
7. Elaborate on the role of cycle inventory in a supply chain. Explain how uncertainty in the
supplier managed. (Mar 2017)
8. Explain multiple location inventory management with an appropriate example.(Mar 2017)
9. What are the components of cost that are affected by inventory decisions? How do firms
determine the optimum level of cycle inventory? (Mar-2015)
10. How do firms make optimal pricing decisions in the context of revenue management?
(Mar-2015)
UNIT-V
Part-A
1. Differentiate between Alliances and partnerships? (May-2015)
2. A partnership company is formed when the parties involved agree to share the business’s
profits or losses proportionately. This business is a separate entity, jointly owned and
operated by the people in the partnership. An alliance is formed when businesses agree to
collaborate without giving up their independent status. A central difference between the
two is that a partnership is a formal legal arrangement where two companies have a
mutual financial interest in each company's actions. A strategic alliance is usually an
informal arrangement intended to benefit each company separately.
2. Define partnership. (Dec-2014)
A type of business organization in which two or more individualspoolmoney, skills, and
other resources,andshareprofit and loss in accordance with terms of the partnership
agreement. In absence of such agreement, a partnership is assumed to exit where the
participants in an enterprise agree to share the associated risks and rewardsproportionatel
3. Why is supply chain integration so difficult in global supply chains?
Integration challenges in global supply chains include cultural, economic, technological,
political, spatial, and logistical differences. Global supply chains translate into both

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longer, and more unpredictable, lead times for shipments, which increases the chances
that customer demand might not be fulfilled due to a potential out-of-stock situation.
4. Suggest few ways to implement interfunctional coordination in SCM?
The various ways of implementing interfunctional coordination include Cooperative
arrangements through which personnel from different functional areas perform
interaction and collaboration
Managerial control, especially integrating managers who are essentially liaison
personnel with formal authority over something important across functions (such as
budgets)
Standardization to guide the processes of coordination so that the coordinated work is
ensured
5. State some laws to have successful alliance in supply chain?

Avoid knee jerk reaction Encourage non-formal interaction

Focus more on how to work Manage your internal stakeholders
together Plan your exit strategy
Embrace differences
6. What are all the various alliance you are aware in supply chain management?
1. Transactional Relationship or Arm’s Length Relationship (no formal relationship)
2.Basic Alliance (some level of trust and open communication)
3.Operational Alliance (constant communication about capacity and demand/supply
issues)
4.Business Alliance (each party depends of specialized products / services from each
other)
5.Strategic Alliance (long-term commitment, resources sharing)
7. What are all the goals of supply chain alliance?
1) Gain access to new customer bases; (2) Offer more product/service offerings for the
customers; (3) Pool resources in light of the large outlay required; (4) To learn new
know-how from the alliance partners; (5) Utilize the existing personal network to
reach new supplier bases; (6) Enhance the market position in present markets; (7)
Add credibility to the business.
8. State type of partnership with examples.
Primary and secondary partners. In general, primary partners (focal companies) are
autonomous channel captains or strategic business units that actually perform operational
and/or managerial activities designed to create a specific product or service for a
particular customer or market. These primary partners can be manufacturers such as Dell
or mass-merchants such as Wal-Mart and Target. In contrast, supporting partners are
companies that simply provide resources (e.g., assets, application software, and real-
estate property), knowledge, and utility for the supply chain. These supporting partners
can be transportation carriers, consulting firms, third-party logistics providers, IT service
providers, online brokers, and educational institution.
9. Discuss the three primary methods that organizations can use to integrate their
Supply chains.
One method is vertical integration, in which one organization owns multiple participants
in the supply chain. Sherwin-Williams, for example, is a paint manufacturer and also
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owns retail paint stores. A second method involves formal contracts among various
participants, such as occurs with franchising. The third method focuses on informal
agreements among various organizations to pursue common goals and objectives. This
option provides a great deal of flexibility—which can have both positive and negative
aspects.
Real-time availability of information allowing for rapid detection and remediation
10. Define supply chain integration. (Sep 2017)
Supply chain integration is a close alignment and coordination within a supply chain. A
supply chain refers to everything required to produce a product from raw materials, to
manufacturing, shipping and support services. There are several levels of integration.
11. What is SC restructuring?(Mar-2017)
Restructuring of supply chain helps a firm in moving the entire efficiency frontier in the
downward direction. SC restructuring involves significant changes in the supply chain
structure in terms of the way material and information flows are managed in the
chain.Some ways of restructuring are,
Moving from the MTS model to Differentiating fast moving and
the CTO model slow moving items of material
Reducing the number of stock flow in chain
points in distribution Product and process redesign
12. What is an agile supply chain? (Mar-2017, Sep 2017)
Agile Supply Chain is built to be highly flexible for the purpose of being able to quickly
adapt to changing situations. The agile supply chain basically refers to the use of
responsiveness, competency, flexibility, and quickness to manage how well a supply
chain entity operates on a daily basis. Implementing an agile supply chain allows
organizations to quickly adjust their sourcing, logistics, and sales.
13. What is reverse logistic/reverse supply chain?(Mar-2015, Mar 2016)
Reverse logistics is the process of planning, implementing and controlling the efficient
and effective inbound flow and storage of secondary goods and related information for
the purpose of recovering value or proper disposal.
Typical examples of reverse supply chain include:
• Product returns and management of their deposition.
• Remanufacturing and refurbishing activities.
• Management and sale of surplus, as well as returned equipment and machines from the
hardware leasing business.
14. What are the causes of Bullwhip effect?(Mar 2016)
Delayed delivery.
Shortage gaming
Rational Behaviour of supply
chain decision makers

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15. What is the use of RFID tags in Warehousing?(Aug 2015)

Reduce time and labor Reduce theft
improve real time data Ease of Tracking
accuracy
16. State the feature of Reverse Supply chain. (Aug 2015)
1.Uncertain flow of materials 3.Customer diversity
2. Improve the value of goods 4. Prompt action, complete as
returned soon as possible.
17. Explain coordination in supply chain?
Different stages of a supply chain may have conflicting objectives if each stage has a
different owner. As a result, each stage tries to maximize its own profits, resulting in
actions. A lack of coordination occurs either because different stages of the supply chain
have objectives that conflict or because information moving between stages is delayed
and distorted. Supply chain coordination improves if all stages of the chain take actions
that together increase total supply chain profits.
18. Define value of Clairvoyance.
Value of clairvoyance also known as Value of information (VOI or VoI) is the amount a
decision maker would be willing to pay for information prior to making a decision.
19. Define bullwhip effect.(Nov-2016, Dec-2014)
The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply
chain inefficiencies. It refers to increasing swings in inventory in response to shifts in
customer demand as you move further up the supply chain.
20. What is agro supply chain?(Sep 2017)
Agro supply chain management (SCM) implies managing the relationships between the
businesses responsible for the efficient production and supply of products from the farm
level to the consumers to meet consumers’ requirements reliably in terms of quantity,
quality and price.
Part-B
1. Discuss the role that IT can play in enabling supply chain management. (Mar 2016)
2. Describe the building partnership and trust in SC value of information.(Mar 2016)
3. Explain how forecasting can be done in supply chains.(Aug 2015)
4. Explain Agile supply chain with an example. (Aug 2015).
5. Discuss the major challenges that must be overcome to manage supply
chain Successfully.(Sep-2017)
6. What role does forecasting play in the supply chain of a build-to-order
manufactures such as dell?(Sep-2017)
7. Explain the purpose and benefits of Supply chain Integration.(Mar-2017)
8. Explain the need and process of Supply chain process restructuring. (Mar-2017)
9. Explain the ways in which a supply chain be restructured so as to improve its
performance?(Mar 2015)
10. What is Bullwhip effect and what are the main causes of the bullwhip effect? What can
a firm do to minimize demand distortions across the chain?(Mar-2015, Dec-2010)

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