1.a) Define Logistics. Discuss and elaborate various components of logistics management.
b) Describe the concept of total cost analysis to logistics.
2.a) What is supply chain management? What are the various flows in a supply chain?
.b) What are the functions and contributions of supply chain management?
3. a) What is meant by customer service? What are its features?
b) What are different elements of customer service costs? Explain its fundamental trade-offs.
4.a) Discuss the role of information in overall performance of logistics and supply chain management.
b) What are various components of Logistics Information System architecture? How does LIS facilitate improvement in logistics decision making?
5. a) What is inventory? Discuss various elements of inventory costs.
b) Define the concept and objectives of MRP and DRP.
6. a) Discuss the nature and scope of storage, warehouse and distribution centers.
.b) Discuss the various functions of a warehouse from the logistics and supply chain perspective.
7. a) Describe the role of transportation in the success of logistics and supply chain.
b) What are the issues that should be considered by a logistics manager in selecting a mode of transport?
8. a) Describe the functions of packaging in LSCM perspective.
b) What are the objectives and principles of material handling?
Maruti Udyog-Indian Ethos & Japanese ways
Maruti Udyog Limited (MUL), the leading manufacturer of cars in India is a leader in supplier relationship management. Its turnover was Rs 12,481.00 crores and its profit before tax \was 1750 crore in 2005-06. It sold 5, 61,822 vehicles in 2005-06 and captured a market share of over 55 percent. It deals with about 7100 components for its eleven major models. Seventy percent of its suppliers by numbers are located within 100 km radius of its Gurgaon plant. They meet more than 80 percent of Maruti’s requirement by value.
Maruti has 220 approved vendors who supply the major components. The top 80 vendors supply 86 percent by value of their purchases. The rest of the vendors supplies only 14 percent. It has also signed joint ventures with a large number of its vendors. Of the 86 percent components supplied by vendors, joint ventures supply only 34 percent; the rest of the 52 percent by value is supplied by other vendors. These 80 vendors are considered strategic partners. Only 20 to 30 of them are Maruti joint ventures.
With strategic partners, Maruti has a number of programmes. Their emphasis is on vendor productivity and quality. Maruti take a major role in improving vendor productivity. It organizes Junkai VA or cost workshops with its vendors on an ongoing basis. Junkai is a Japanese word which basically means “visiting”. It has 3 components called three G- Genmab, Gembutsu, and Genjitsu.
Gemba means taking a look to see what is happening at the site. Gembutsu means examining the affected piece to understand what exactly the defect is. Genjitsu means discussing under what conditions this has happened – something like a brainstorming session. Typically, a team from Marut, along with the supplier team visits the supplier’s shop floor, has look around, noting down points. They then have a brainstorming session at the Maruti office. At the end of the brainstorming, they come out with various points relating to improvements in productivity, quality and cost.
Maruti also has constituted a group called Maruti Centre for Excellence. This is a team which continuously goes to suppliers to upgrade them. It audits the workings of its suppliers and comes out with a spider chart. The spider chart has 22 points. Each vendor is evaluated in these 22 points. Additional business is promised on the next new model to vendors who score over 60 percent on the spider chart. Every vendor really tries to make sure that he goes above this mark.
Apart from this, it has also started second tier improvement in a very big way. This was the latest initiative it took up a year ago. The result has been that the second tier vendor’s quality has also gone up. It has also started ‘green initiatives’. Accordingly, all packing has been converted into reusable packing. It recently introduced a practice to check the pollution levels of all the trucks getting into Maruti; if pollution levels were not right, then the trucks were sent back. This made its vendors understand that Maruti cared about the environment.
Further, it follows the Kaizen theme, which means to make it smaller, fewer, lighter, shorter, and beautiful. It follows this theme in its plant and has been continuously teaching this practice to its vendors. It conserves the usage of material and yield improvement. Moreover, along with CII and USAID, it has started a programme to help its suppliers get ISO 14000 certification. It has also started a programme on ELV compliance. Though this is not required in India, the idea is that by the time the requirement comes to India, Maruti’s vendors will all be sufficiently equipped to take care of it. It also has a vendor finance cost reduction programme. It has lined up with banks to see that the loans of its suppliers are transferred to lower interest rates. Through these initiatives Maruti has become more agile and leaner.
In 2005-06, Maruti trained around 16 vendors and ultimately the savings of man hours per day came to 1580 man hours, which has resulted in a saving of over one crore rupees per annum. It was able to reduce component costs by 29 percent on the Alto alone from 2001 to 2005.
1) What is supplier relationship management?
2) What was Maruti’s objective on supplier relationship?
3) Discuss the kind of relationship Maruti adopted with its vendors.
4) What are the methods adopted by Maruti to achieve supplier relationship?
1. Which of the following is not a characteristic of logistics?
(a) It ensures a smooth flow of all types of goods.
(b) It has the ability to meet customer expectations and requirements
(c) It offers the best possible customer service at any cost
(d) It deals with movement and storage of goods in appropriate quantities
2. All of the following are the objectives of logistics except:
(a) To make available the right quantity of material at right quality at
right time at the right place in a right condition at right price
(b) To offer best possible customer service for competitive advantage
(c) To promote the product through the logistic channels
(d) To minimize total logistics costs
3. The logistic costs in India is _________ percentage of GDP
4. Which of the following does not provide a way to create competitive
(a) Low cost
(b) Low flexibility
(c) Superior customer service
(d) Value added services
5. All of the following are primary activities in a value chain except:
(a) Inbound logistics
(c) Technology development
6. Which of the following is not a desired flow in a supply chain?
(a) Forward flow of value
(b) Flow of goods in both the direction
(c) Backward flow of cash
(d) Flow of information in both the directions
7. Which of the following is not a feature of customer service?
(a) It is reactive process
(b) Ensure a tradeoff between cost and service
(c) Creates a competitive advantage
(d) Brings about harmonious relationship with supply chain members
8. All of the following are post transactional customer service elements except:
(a) Installation, warranty, repairs, etc.
(b) Customer claim, complaints and returns
(c) Stock out level
(d) Temporary replacement of products
9. Freight charges depend on all of the following except:
(a) Nature of the product
(b) Value of the product
(c) Distance to be covered
(d) Volume/quantity to be shipped
10. A Carrier performance measure does not include:
(b) Claim settlement ratio
(c) Area of warehouse owned
11. Physical distribution in terms of logistics is known as:
(a) Inbound logistics
(b) Outbound logistics
(c) In plant logistics
(d) Reverse logistics
12. which of the following is not a feature of supply chain?
(a) Supply chain is a network of entities
(b) The more the number of stages in a supply chain the more will be its
(c) Supply chain efficiency and effectiveness are the same
(d) Supply chain profit should be shared equitably by all the chain members
13. Supply chain conflicts can be reduced by all of the following except;
(a) Use of power by the dominant partner
(b) Involvement by investment
(c) Information sharing
(d) Transfer of technology and skills
14. which of the following is not a key output of the logistic system?
(a) Creating competitive advantage
(b) Time and place utility
(c) Creating proprietary asset
(d) Increased cash flow
15. Logistics stand for
(a) Whatever is logical and reasonable
(b) Movement of material to destinations
(c) Putting together conclusions logically
(d) Moving supplying and warehousing material and information in an
16. Supply chain management covers:
(a) Management of suppliers and vendors
(b) Management of inventories, warehousing, transportation and documentation
relating to all suppliers
(c) Management of demand and supplies at minimum cost but grater customer
(d) Warehousing management
17. Transportation management is:
(a) A small and significant part of SCM
(b) Too specialized and should be managed separately
(c) Does not affect customer service
(d) Forms a major component of costs and should be synchronized to enhance
18. A fourth party logistics provider is:
(a) An organization that provides transportation
(b) An organization that provides warehousing facility
(c) An organization that manages inventory and information
(d) An organization that provides comprehensive supply chain solution
19. Which of the following does not fit into the feature of customer service?
(a) Providing customer service a tany cost
(b) Strategic processes that provides value added services
(c) Creates competitive advantage in the market place
(d) It reflects corporate vision
20. The internal web of an organization that allows only the internal users to access and share data is called:
21. Which of the following is not an inventory related cost?
(b) Ordering cost
(c) Carrying cost
(d) Stock out cost
22. Which of the following is not an assumption of basic EOQ model?
(a) Annual demand, carrying cost and ordering cost can be estimated and is constant
(b) Half of order quantity is considered as safety stock
(c) Stock out has no effect
(d) Quantity discount does not exist
23. Inventory analysis based on the annual consumption value is called:
(a) ABC analysis
(b) VED analysis
(c) FSN analysis
(d) XYZ analysis
24. All are inputs to MRP system except:
(a) Bill of materials
(b) Inventory status file
(c) Master production schedule
(d) ABC analysis file
25. All are features of Distribution Resources Planning except:
(a) DRP deals with finished goods inventory
(b) DRP operates in an independent demand situation
(c) DRP is an explosion process
(d) Inputs to DRP is the distribution networks
26. Which of the following is not associated with JIT system?
(a) Waste elimination
(b) Mass production
(c) Single piece flow
(d) Pull system
27. All are economic function of warehouse except:
(a) Stock pilling
(c) Breaking bulk
28. The changes levied by a municipal corporation
(a) Sales tax
29. Mode of economic surface transportation for bulk solid material over a long
30. Inter model transportation system arising out of the coordination between
roadways and railways are known as:
(b) Fishy back
(c) Train – ship
(d) Express cargo
31. All are principles of material handling except:
(a) First principle
(b) Mechanization principle
(c) Flexibility principle
(d) Energy principle
32. Which of the following is not true for Air Way Bill?
(a) Receipt of goods
(b) Contract for affreightment
(c) Negotiable document
(d) Issued by carrier
33. Which of the following is not a carrier selection determinant?
(a) Transportation cost
(b) Transit time
(d) Vehicle cost
34. A bonded warehouse is:
(a) An open stockyard with high walls and other security measures for extra
protection of goods stored
(b) A war house in the premises of airport where goods imported by air are
(c) A warehouse where goods on which customs or excise duties have not been
paid are kept
(d) A govt. warehouse used for storing confiscated goods
35. LCL stands for:
(a) Less than normal cargo load
(b) Less than container load
(c) Low cargo load
(d) Less costlier load
36. Penalty charged by a carrier for not clearing a consignment from their
warehouse during the allowable time limit is known as:
(c) Liquidated damages
(d) Penal charges
37. certificate of origin is issued by;
(a) Bank in the exporting country
(c) Chamber of commerce
(d) The carrier
38. Which of the following is not an advantage of containerization?
(a) Reduces damages
(b) Increases investment on handling
(c) Reduces packaging
(d) Reduces loss
39. All are related to bullwhip effect except:
(a) It is the amplification of demand variation as one moves upstream in the
(b) Forecast errors and lead time variability add to bullwhip effect
(c) The phenomena was first noted by Wal-Mart
(d) The effect can be reduced by information sharing, vendor managed
40. All are functions of order processing except:
(a) Order planning
(b) Order handling
(c) Order delivery
(d) Order pending
We Also Provide SYNOPSIS AND PROJECT.
Contact www.kimsharma.co.in for best and lowest cost solution or
Note: We are not associate with any university or institute. We provide solution for reference & study purpose only.