MK0010-Sales, Distribution and Supply Chain Management

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Master of Business Administration - MBA Semester 3
MK0010-Sales, Distribution and Supply Chain Management
(Book ID: B1721)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10
marks 6 X 10=60
Q1. Describe the supply chain Benchmarking Procedure.
Answer. Benchmarking
Benchmarking has been used variedly to refer to several activities. Several definitions have described as
‘benchmarking’. Some of these definitions are discussed to emphasize the diversity:
•‘A continuous systematic process for evaluating the products, services and work of organizations that are
recognized as representing best practices for the purpose of organizational improvement’ (Spendolini,
Q2. Explain the recent trends in Sales Management.
Answer. Definition of sales management
Goods were produced either only after receiving the sufficient orders or for which sufficient demand
existed. Further, there existed little or no competition in those days. But in the modern days, sales and
distribution system is a complex and technology driven. New and new innovations are taking place and
changing the way we used to perform sales related functions. The game is old but the rules are new and
still developing. Consequently, modern sales managers should get acquainted themselves with these
changes and prepare themselves to these emerging trends.
Q3. Briefly discuss about the nature and responsibilities of a Sales manager.
Answer. Goal Setting
The role of the sales manager in goal setting can broadly be classified into two areas:
• Role played in supporting the organizational goal setting
• Role played in enumerating the goals of the sales force
Q4. Explain the SCOR model with a diagrammatic representation.
Answer. SCOR model
The SCOR model is used to understand simple or complex supply chains through a common set of terms.
Consequently, different industries can be related to each other to interpret any supply chain. SCOR is
based on five unique management methods. These are: Plan, Source, Make, Deliver and Return.
(i) Plan: It includes methods required to balance collective demand and supply to devise a strategy which
meet sourcing, production and delivery requirements in an optimum manner.
Q5. When one member of distribution channel tries to maximize its profits at the expense of rest of the
members, it will create conflicts, resulting in the decline of profits. To avoid these conflicts, now retail
firms have started forming vertical Marketing systems (VMS). Explain the three types of VMS through
which goods and services are usually distributed to customers.
Answer. Vertical Marketing systems (VMS)
A Vertical Marketing System (VMS) is a system in which almost all the members of distribution channel
such as manufacturers, wholesalers and retailers work together to satisfy human needs and wants by
facilitating the smooth flow of goods and services from manufacturer to the ultimate consumer. In
traditional marketing system, manufacturers, wholesalers and retailers are separate entities who try to
maximize their own profits. The philosophy behind developing vertical marketing system is that when one
member of distribution channel tries to maximize its profits at the expense of rest of the members, it will
Q6. An organization needs to be extremely cautious in making investments in various types of
inventories. The extent of control required to be maintained on all items is not the same. Explain some
important tools of Inventory management like ABC analysis, Just-In-Time & Economic order quantity
Answer. Inventory and Inventory Management
The term ‘inventory’ means any stock of direct or indirect material (raw materials or finished items or
both) stocked in order to meet the expected and the unexpected demands in the future.
Inventory Management
Inventory management is primarily about specifying the size and placement of stocked goods. Inventory
management is required at different locations within a facility or within multiple locations of a supply
network to protect the regular and planned course of production against the random disturbance of
running out of materials or goods. The scope of inventory management also concerns the fine lines
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