PROGRAM - MBA - SEM - 3

SUBJECT CODE & NAME - OM0012 SUPPLY CHAIN

MANAGEMENT
1. Explain the different modes of transportation.
Modes of Transportation
The movement of goods from one place to another within a supply chain is known
as transportation. It starts from the beginning of a supply chain and ends when the
product reaches the hands of the customer. With the increasing globalisation
in supply chain and growth of e-commerce, the importance of transportation
has grown tremendously. This is because the supply of products is now needed
for distant places. And transportation decisions in a supply chain affect the
profitability and influence both facility and inventory decisions within a supply
chain.
The mode of transport consists of the type of transport used. Each mode has
different characteristics, and the best in any particular circumstances depends
on the type of goods to be

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2. Explain the factors influencing the network design

decisions in supply chains.
Factors Influencing Network Design Decisions

Network design of supply chain provides a strategic way to capture

the dependencies between various operational units. The constant
review of network design helps a firm to reconsider the various benefits and
trade-offs associated with different sites. Making decisions on the location of
facilities and the selection of suppliers allows a firm to restructure their
supply chain to further maximise profitability.
The factors that influence network design decisions in supply chains can be
categorised as

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3. What are the external factors that produce impact on

the purchasing strategies?
External Environment and Purchasing Strategies
With day-to-day purchasing activities, you sometimes fail to consider
how the function would perform in the future. There are many external
impacts on the availability and cost of raw materials and resources. The
inventions of new technologies and products, changes in the market
conditions, changes within the purchasers company, and so on impact the
purchasing process.
Purchasing strategy defines goods and services that can be purchased with
a specified amount of money. It is an important economic
consideration while evaluating cost and standard of

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4.
a.
b.
c.
d.

Explain the methods used to create effective forecasts.

Judgement method
Market research method
Time-series method
Casual method

a. Judgement method
Judgement method In this method, we consider experts opinions while
creating the forecasts. The method is primarily subjective and relies on
human judgement. For example, sales persons are aware of the expected
sales. Hence, consulting them will help create effective forecasts. The
method is more appropriate when there is a little historical data available or
when the experts have enough market intelligence.
b. Market research method
Market research method This method makes use of market
testing or market surveys to understand the behaviour of the consumers. A
thorough market research helps in

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5. Write a short note on centralised versus decentralised

control in supply chain integration.
Centralised versus decentralised control
The supply chain system is said to be centralised when the top
management level of supply network is owned by a single entity. The
decisions under centralised system are made at a central level of
supply network. The objective of centralised system is to minimise the
cost associated with it for satisfying the service-level requirements of
customers.
This objective can be met when the centralised system has many different
sub organisations. This indicates that the centralised control leads to global
optimisation. The supply chain system is said to be under
decentralised control when all the sub organisations have the

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6. Trace the latest development in electronic procurement

and explain its benefit.
Latest development in electronic procurement
Over the past 20 years e-procurement has seen success as well as
challenges. Due to the advancement in internet, many companies are
offering B2B services. It contains services like catalogue management,
hosting of databases, handling tenders and auctions on behalf of clients. For
instance, customised software like ERP eliminates manual work of
preparing and submitting big tenders.
E-Procurement developments in the private sector
In private sector, some companies serving the oil and gas, pharmaceutical
and mining industries have adopted e-procurement. Some companies even
offer full range of supply

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