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Logistics and Supply Chain Management


All questions are compulsory

Figures to the right indicate marks assigned
Use of simple calculator is allowed
Support your answer with diagrams, schedules and illustrations whenever

Q.1 Answer any two of the following

a. Explain the importance of logistical management in current business
environment in India with the help of relevant examples.
b. Delphi method of demand forecasting is one of the most effective
qualitative technique of forecasting Comment.
c. Distinguish between Logistics and Supply Chain.
Q.2 Answer any two of the following
a. Compare Rail and Road modes of transportation.
b. Material handling adds only costs and no value Comment.
c. Explain warehouse layout design principles and advantages of private
Q.3 Answer any two of the following
a. Discuss various cost associated with inventory.
b. Explain ABC analysis with the help of numerical example.
c. RFID and EDI have contributed significantly in advancement of supply
chain Comment
Q.4 Answer any two of the following
a. Explain External Performance Measurement and its objectives.
b. What is ICD and CONCOR. Also explain their importance.
c. What do you understand by Logistical Network Analysis.
Q.5 Study the following business case and answer the questions given at the end
of the case: (15)
M/s Superfine Sulphur Limited is one of the largest producers of sulphur in the
country. They supply sulphur to various industries/consumers requiring it.
The powder and granular sulphur are primarily used for the manufacture of
paper and fertiliser. Superfine Sulphurs management realized that quality
packaging, proper material handling, and effective storage and warehousing
systems are important to customer service as well as cost control. Therefore, to
obtain an efficient and effective logistics operations, Superfine Sulphur
periodically reviewed its system.
Superfine Sulphurs products are are palletized or packed in bulk bags. A pallet
hold forty bags (eight layers of five bags each), each bag weighing 20 kgs. The

firm ships about 85% of the finished product on pallets. The company uses 2,500
wooden pallets per month, each pallet costing Rs 1,000/-. The bulk bags hold
between 250 kgs to 500 kgs.
The work flow is listed below for the packaging and the material handling
system. It consists of the following stations and machines:
1. Automatic-drive bagging machines have three conveyor lines
2. Power-driven live roller chain conveyors move the bags horizontally and at a
slight elevation to the respective stations
3. Automatic weight checking machines identify and reject over-weight and
under-weight packages
4. Metal detectors identify and reject bags with foreign metals
5. Bags which have been rejected by the weight-checking machines and the
metal detectors are conveyed to a panel for further investigation
6. Palletizing machines automatically lift and place the packed products in the
desired pattern
7. After palletizing, the packed products are conveyed to the semi-automatic
stretch wrapping machine. This machine wraps the products in stretch film. Since
this machine is semi-automatic, three warehouse workers operate the machine
one to operate the system, one to put the top sheet on to the palletized goods,
and one to cut the end film and staple the end film on the pallet.
After stretch wrapping the products, the material handlers move the palletized
product to the designated storage place. Presently,
Superfine Sulphur owns one private warehouse and rents two public warehouses.
The rent paid to each of the two public warehouses was Rs. 150/- per square per
month. The floor area of both the public warehouses together is 50,000 square
feet. The monthly rent to the public warehouses is expected to double next year.
Superfine Sulphurs pallets are neither customized nor standardized. Hence, its
customers have trouble in unloading the pallets from the containers. This takes
too long to unload the pallets. Also, the hand pallet trucks truck rollers of the
customers stick to the pallets that is, create sort of a difficulty in the unloading of
the containers.
Customers have also complained about the contamination of the two top layers
of the product due to water/dust/atmospheric conditions during transportation
and storage.
1) The product is vulnerable to water/dust/atmospheric conditions. Suggest
alternative methods of packaging, transporting and warehousing to ensure
protection of the product
2) Critically analyse the material handling systems of both, the company as well
as the customers and suggest suitable logistically viable alternatives

3) Study the increased cost of public warehousing and its implications on the
products profitability. Recommend suitable, viable alternatives that should fit into
the total systems concept and total cost concept of the company