Supply Chain Management-1


SKU: AMSEQ-253 Category:

Assignment – A

Question 1. Describe the evolution of Logistics and Supply Chain Management since 1960s and explain if it should also include the Demand Chain Management.

Question 2. What is the justification of Strategic Logistics and Supply Chain Management and bring out its implications for management.

Question 3. Describe the critical issues in Logistics and Supply Chain Management in the Indian context and highlight the imperatives of a comprehensive approach in the industry.

Question 4. Draw up in detail the physical components of a comprehensive Logistics and Supply Chain management explaining their scope and importance in India.

Question 5 What are the important metrics for performance measurement of a firm and how they can be used for bringing out continuous improvement in the operations of the company?

Assignment – B

Question 1. How does Logistics and Supply Chain Management help deliver enhanced value to end consumer on a continued basis?

Question 2. How does LSCM facilitate effective Enterprise Resource Planning and Control?

Question 3. Describe the components of emerging concepts in customer service and explain the possible measures of customer service performance.

Case Study


The prevalent logistics mindset must move from one of complexity and cost efficiencies to one of revenue and margin enhancement. The imperative of providing logistics services represent a great and untapped area for providing increased value to the purchasing. When customers purchase, they buy more than a product. They also buy a bundle of services provided by the supplier. This includes components like pricing flexibility, promotion/ deal or other discounts, credit and other payment terms, merchandising support, after-sales support and delivery or logistics support Customers’ requirements for logistics se rvices, however, vary by customer or product. The one- size-fits-all approach to logistics service often leads to average service which may be over- servicing some customers while under-servicing others!

In a large pharmaceutical firm, all orders were processed as emergencies although 85 % of them were for replenishments as the firm thought that all its customers needed short delivery. This way it was over-servicing some customers and its costs were higher. The suppliers’ challenge was to improve service to some and reduce its level for others and thus reduce the overall cost that, in ultimate analysis, help both the customers and suppliers.


(a) Describe the bundle of services that must accompany a tangible product in order to achieve higher customer satisfaction.

(b) Justify that every industry is operating in service sector and cannot do without improving its service satisfaction to end consumers.

Assignment – C

1. Logistics stands for
(a) Whatever is logical and reasonable
(b) Movement of materials to destinations
(c) Putting together conclusions logically
(d) Moving, supplying and warehousing materials and information in an enterprise

2. Supply Chain Management (SCM) covers
(a) Management of suppliers and vendors
(b) Management of inventories, warehousing, transportation and documentation relating to all supplies
(c) Management of demand and supplies at minimum costs but greater customer satisfaction
(d) Warehousing management

3. Logistics aims at
(a) Management of synchronized flow of materials and services through materials management,
manufacturing management and marketing functions with greater satisfaction to end consumer
(b) Management of suppliers through efficient purchasing
(c) Management of raw, intermediate and finished materials
(d) Coordinated flow of finished goods to first level of customers

4. SCM is
(a) Internally focused
(b) Focused on faster movement of materials and services across the whole supply chain for the end consumer
(c) Focused on suppliers and internal operations of the firm
(d) Focused on maintaining contacts with suppliers, transporters, warehousing and retailing firms

5. SCM is essentially
(a) A technological capability across firms
(b) A process of managing business across firms
(c) A problem of attitudes and behaviour with business partners
(d) All of the above

6. SCM is
(a) Subset of Enterprise of Resources Planning (ERP)
(b) Complementary to ERP
(c) Management of supply chain as well as demand chain
(d) Management of subvendors, vendors, manufacturing, wholesalers/ distributors and retailers for greater satisfaction of end consumer

7. SCM implies
(a) Efficient management of various components from first level of suppliers to first level of customers
(b) Integration across firms covering suppliers, manufacturing and customers
(c) Closer coordination among supply, production and distribution functions
(d) Integration among vendors, internal operations, manufacturing and distribution of the firm

8. SCM signifies
(a) Time compression across the supply chain
(b) Transfer of technology across the supply chain
(c) Effort to cope with increased expectations of customers
(d) All of the above

9. SCM is geared to
(a) Accomplishing strategic intent rather than strategic fit
(b) Managing value system across the fir
(c) Both of the above
(d) None of the above

10. SCM stands for
(a) Dynamic, interactive and flexible approach with all the business partners along the supply chain
(b) Sophisticated and creative tools for improving levels of customer satisfaction
(c) Both of the above
(d) None of the above

11. Real life inventory management is more complex because
(a) Demand rate is not known nor it is constant
(b) Lead time of suppliers is not known nor it is constant
(c) Both of the above
(d) None of the above

12. In the emerging fierce competition, retailers are becoming more powerful but
(a) They do not want to hold more than the barest minimum inventory
(b) Items should be in presentation form only
(c) Vendors to manage inventories for them
(d) All of the above

13. Inventory management under SCM aims for
(a) Economic order quantity for inventory control
(b) Full truck loads for shipment
(c) Continuous replenishment of items sold
(d) None of the above

14. Concept of distribution centres under SCM is
(a) An old concept of regional warehouses with a new name
(b) Intended to reduce storage points in the distribution system
(c) Designed to reduce variability in demand
(d) In an extension of manufacturing and logistics downstream to save on costs and improve customer satisfaction

15. Distribution centres help to customise the products and services
(a) At the downstream stage
(b) At the midstream stage
(c) At the upstream stage
(d) None of the above

16. SCM starts with
(a) Overall forecast of demand for different product lines from the marketing research group under marketing department
(b) Signals of demand as modified by the demand management call
(c) Both of the above
(d) None of the above

17. SCM is
(a) Stockpiling of inventories
(b) Pushing products in to the market
(c) Responding haltingly to changing customer demands
(d) None of the above

18. Transportation Management under SCM involves
(a) Transport planning
(b) Vehicle routing and scheduling
(c) Delivery execution and shipment tracking
(d) All of the above

19. Transportation Management is
(a) A small and insignificant part of SCM
(b) Too specialised and should be managed separately
(c) Does not affect customer service
(d) Forms a major component of costs and should be synchronised to enhance customer satisfaction

20. SCM is
(a) Linking with the corporate missions of the firm
(b) Teaching benefits of supply chain within the firm
(c) Preaching it to the customers, suppliers, carriers and logisitics providers
(d) All of the above

21. Transportation Management under SCM should target
(a) Continuous replenishment of products sold to end consumer
(b) Selective outsourcing to facilitate coupling and docking downstream
(c) Both of the above
(d) None of the above

22. Manufacturing under SCM should be linked to
(a) Producing as per economic batches of production
(b) Producing at the rate permitted by the bottleneck stage
(c) Producing in synchronization with the demand of end customers
(d) None of the above

23. Manufacturing under SCM should be
(a) Lean and free of waste
(b) Flexible, quick and responsive
(c) In sync with demand
(d) All of the above

24. Excellence in distribution operations
(a) Is value adding to supply chain
(b) Improves accuracy of order fulfillment, quality in products and services
(c) Both of the above
(d) None of the above

25. Increasingly customers are demanding
(a) Quality, price and credit terms
(b) Prompt delivery and other post sale services
(c) Both of the above
(d) None of the above

26. Competition is currently revolving around
(a) Products only
(b) Bundle of services around of services around the product
(c) The entire supply chain right up to the end consumer
(d) None of the above

27. SCM should aim to accomplish
(a) Better aligned service offerings to end consumers, winning their loyalty and giving them no reason to switch
(b) Higher market penetration, greater product availability and attractive appearance
(c) Both of the above
(d) None of the above

28. Customer service implies
(a) Management of customer service after sales
(a) Management of customer service during and after sales
(b) Effective customer contact management before, during and after sales
(c) None of the above

29. Satisfied customers benefit firms as
(a) They help increase market share including word-of-mouth recommendations to new buyers and reduce costs of marketing and sales
(b) They make it possible to charge premium prices over competitiors
(c) Both of the above
(d) None of the above

30. Customer service support is driven by
(a) Changing customer expectations, proliferation of products and new technologies
(b) Changing channels of customer support delivery
(c) Both of the above
(d) None of the above

31. Principle of postponement plays a significant role in reducing costs of SCM. Postponement is greatly facilitated by
(a) Modular design of products
(b) Modular design of process
(c) Both of the above
(d) None of the above

32. SCM implies
(a) Providing uniform and consistent services to all customers, big or small
(b) Differential levels of services for different category of customers
(c) Both of the above
(d) None of the above

33. Integrated demand and supply chain management can deliver higher benefits if
(a) Core process of demand chain and supply chain are integrated
(b) Support infrastructure that facilitates integration of demand chain and supply chain is put in place
(c) Both of the above
(d) None of the above

34. Integration across the firms in the Supply Chain Management is achieved by installing
(a) Online Information Technology systems
(b) Online financial transactions and fund transfers
(c) Human resources and other administrative activities
(d) All of the above

35. SCM in this century is moving towards
(a) Flexibility and velocity of materials and processes
(b) Integrating demand planning with supply chain
(c) Synchronising network of processes across several firms with absolute precision
(d) None of the above

36. Efficient Consumer Response (ECR) stands for fulfilling consumer expectations
(a) Better
(b) Faster
(c) At lower cost
(d) All of the above

37. Roots of ECR can be traced
(a) Adopting Just-in-Time and Total Quality Management philosophy
(b) Close collaboration, networking and sharing of business information with partners in the
(c) Both of the above
(d) None of the above

38. ECR has been greatly facilitated by enabling technologies like
(a) Electronic Data interchange, bar coding and data base maintenance
(b) Electronic fund transfer and other financial transactions
(c) Both of the above
(d) None of the above

39. ECR stands for
(a) New products and processes
(b) New attitudes and behaviour
(c) Both of the above
(d) None of the above

40. ECR aims for
(a) Removing negatives in supply chain and building off its strengths
(b) Focusing on demand generation
(c) True partnership across the firms in the supply chain
(d) All of the above



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