Advanced Supply Chain Management NMIMS Solution June 20
Q1. As a Supply Chain department head, you are stocking large inventory to improve customer service level. However, there is a high pressure from the management to reduce inventory cost. Explain with examples how you will plan for inventory optimization without affecting customer service.
Q2. As a production planning head you are required to decide on a suitable aggregate plan for an export order. The demand forecasted are shown below, for next 6 periods. You have with you at present 1050 workmen and each can produce 1 unit per month (all months have same working days). The beginning inventory is zero. The production cost is $100 per unit and includes material and labor cost. If you want to increase the workforce hiring cost would be $30 per workman and to reduce the workforce the layoff cost would be $70 per workman. Inventory holding cost is $20/unit per month and backorder will incur $50/unit/month. Make Chase and Level strategy and explain with reason which strategy you will recommend.
Q3. You are doing production planning and the performance of your organization depends on the accuracy of the demand forecast you make for it.
- Explain the six-step approach you may take to ensure that your will conduct an effective forecast. (5 Marks)
- What error analysis will you do so as to determine the accuracy of the forecast you are making?(5 Marks)
June 2019 Previous Assignment
Q1. SCM plays a pivotal role in an organisation’s success by enhancing its operational efficiency and maximising customer satisfaction. In the earlier days of supply chain management there were four enablers, namely, Infrastructure, Technology, Alliances and Human Resources which influenced the supply chain performance. Today in your opinion, apart from these enablers, what other effective methods can an organization adopt for competitive supply chain management? Give examples wherever possible. (10 Marks)
Q2. As Supply Chain Head, it is your job to develop and implement an effective transportation strategy. The business unit head, asks you to use the intermodal strategy to lower overall transportation cost. Explain the steps you will follow. (Give industry best practices examples wherever possible). (10 Marks)
Q3. Warehouse manager of Integrated Parts, an electronic manufacturing company, has an objective of preventing a stock-out situation at any time for one of its vital components. The annual demand for the component is 60,000 units and the usage is uniform. The quantity ordered from supplier each time is 600 units and it is delivered after 7 days from ordering date. The company policy is to maintain a safety stock of 20% of its average inventory. The company works for 300 days in a year.
a. What should be the re-ordering point? (5 Marks)
b. Briefly discuss the steps the warehouse manager should take in determining optimal inventory level (5 Marks)