OM0012-Supply Chain Management

Winter-2015
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Master of Business Administration - MBA Semester 3
OM0012-Supply Chain Management
(Book ID: B1542)
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. What are the different factors affecting transportation decisions?
(Description/outline of different following factors and its sub factors in students own words
Carriers
• Vehicle related cost
• Fixed operating cost
• Trip related cost
• Quantity related cost
• Overhead cost
Customers
• Transportation cost
• Inventory cost
• Facility cost
• Processing cost
• Service level and fast delivery
Answer. It is important to research the local market to learn the different types of services
provided by different carriers, and then select the carrier that provides the best service.
This factor can be further divided as follows:
Q2 Write short notes on risk pooling.
(Description of risk pooling, importance of risk pooling in SCM,
Listing and summarization (along with suitable examples for each) of four, types of risk pooling,
Location pooling, Product pooling:
• Lead time pooling
• Capacity pooling)
Answer. Risk pooling and its types
Risk pool is a term used in risk management, mostly in insurance companies. Under this system,
insurance companies come together to form a pool, which can provide protection to insurance
companies against catastrophic risks such as floods, earthquakes, etc.
There are several types of risk pooling strategies that are used in supply chain management. Each
of these strategies can help any firm to work effectively. A firm needs to choose the strategy that
is appropriate for a situation.
Q3. Read the following case study and answer the questions given the end of the case study
Best Supplier Relationship Management: Jaguar Land Rover and Gobel & Partner Jaguar Land
Rover production line 8 October 2013 | CIPS Supply Management Awards 2013 “Jaguar Land
Rover (JLR) transformed its position in customer satisfaction surveys and enhanced the quality
of its products through an innovative partnership with a key supplier.
By re-evaluating the way it deals with quality control and suppliers, Jaguar took top spot in the
2012 JD Power Survey for customer satisfaction and Land Rover raced up the chart. In 2008, the
survey put Jaguar at nine and Land Rover at 34 for quality, described by JLR as “clearly an
unsatisfactory situation” for a premium brand and stated that “something had to change”.
Component quality was identified as the key issue – for some suppliers the proportion of
rejected parts was as high as 65 per cent – and some finished vehicles were being put into
‘containment’ due to faulty components. This had knock-on effects including delayed customer
shipments, production line stoppages that cost £2,000 per minute and the risk that faulty parts
could make their way into completed vehicles. At the time, JLR was working with 16 different
suppliers across three factories to undertake parts rework and containment, resulting in
differing quality regimes and an inability to share data across the company. As a result, there
was no single view of any given supplier’s quality history, which made preventative action
impossible. A new director of quality was appointed who launched a review of quality across
the supply chain that identified potential improvements that could be made to the inspection of
incoming components from suppliers. The Inbound Materials Project was established and the
16 suppliers dealing with quality control were reduced to one – Gobel & Partner (G&P) – who
saw it as an opportunity to introduce innovations and boost investment in its Qtrak quality
management system, which totals £2 million to date.
This evolved into a partnership between JLR and G&P. Both realised that prevention was better
than cure, and through Qtrak they could identify the component suppliers causing the most
problems. Those with a recurrent history of reject parts were subject to a more rigorous
inspection regime. G&P’s aim is to ensure no faulty part ever arrives at JLR production facilities
and they now work on the premises of high-risk suppliers to review quality processes. The firm
is also working at JLR’s new plant in China to ensure the right quality approach is in place from
the beginning.
Over six years, the relationship between the firms has evolved from a traditional adversarial
situation, where G&P were treated as one of a number of commodity suppliers, to one where
the two are working to the same goal of “bringing premium quality to premium
brands”.Wolfram Leidtke, JLR board quality director, said: “JLR is a premium brand and
accordingly needs to have premium quality vehicles. Procurement has aligned with this
objective. G&P has been able to transfer their global knowledge and work with JLR to develop a
new approach to incoming material quality and the results are starting to speak for themselves.’
”(Illustrate the role quality played as criteria in JLR choosing its supplier Gobel & Partner.
Explain the importance of Gobel & Partner in the supply chain(unit 6)
A Students should illustrate based on:
• How critical is component quality to JLR
• What were the effects of bad quality
• What were the issues JLR had to tackle to working with 16 suppliers
• The steps taken by JLR to improve quality
Importance of the supplier) 10 marks
Answer. The role quality played as criteria in JLR choosing its supplier Gobel & Partner
• Quality plays a very important role as criteria In JLR choosing its supplier. It is critical
component.
• As we see in the case study JLR was working with 16 different suppliers across three factories to
undertake parts rework and containment, resulting in differing quality regimes and an inability to
share data across the company.
• The main bad effect of this bad quality was that, there was no single view of any given supplier’s
quality history, which made preventative action impossible. As I noticed after reading given study
that only the quality was the reason that made the Gobel & partner as supplier.
Q4. “MTR Foods, the Bangalore-based food processing company, is planning to utilise the
services of a third party manufacturer for the first time. The contracted plant in Mathura for
producing vermicelli is expected to give it a push in the northern and eastern markets where it
is trying to expand its presence. The company is also planning a capacity expansion in spices.
MTR has nine plants in Bommasandra Industrial Area in Bangalore which caters to its product
categories like spices and masala, beverages, vermicelli and frozen food. The company has so
far produced its brands inhouse. ‘The plant in Mathura would help us supply to the north and
eastern parts of the country. It would help us source wheat faster and also trim freight costs by
6-7 per cent,’ said Sanjay Sharma, chief executive officer, MTR Foods.”
Which according to you may then be distribution strategy used by MTR? Justify your answer
(unit 8)
• (Explanation on the facts fitting the strategy
• Identification of the strategy
• Rationale behind choosing the strategy
• Conclusion)
Answer. Explanation on the facts fitting the strategy
MTR Foods Ltd. is one of India's leading purveyors of packaged foods. The company is one of only
a few that sell packaged food nationwide. It pushed into more cities in southern India, where it
eventually gained leading market share in every region that enjoyed a predominantly vegetarian
cuisine. Market opportunities also increased in Bangalore, which had become the so-called Silicon
Valley of India, the center of the country's booming information technology industry. The name of
the distribution strategy choosed by MTR is intensive which fits to the facts of this food company.
Q5. Explain any four direct benefits of outsourcing with examples. (unit 10) A any four of the
following benefits (reason why this is a benefit, description of the benefit and example)
• Focusing on core competency
• Reducing the expenses of manufacturing and logistics services
• Reducing the head count of hourly employees and management
• Improving the accuracy
• Improving flexibility and wider range of services
• Getting access to global networks and better technology
• Improving services
• Improving quality
• Reducing capital investment and increasing cash flow
Answer. Direct benefits of outsourcing in detail are as:
• Focusing on core competency – When a company outsources manufacturing, logistics, or both,
then there is no requirement of resources to manufacture the product, to store the product or to
deliver it to the customers. The company can utilise these resources for its core functions. For
example, when a company considers product design and engineering as its core competencies,
then outsourcing the manufacturing of the product helps in improvement of designing and
engineering capabilities.
Q6 Describe the supplier integration approach. Explanation of the stages of supplier integration
with suitable examples
• None
• White box
• Gray box
• Black box
Answer. Supplier integration at any stage in the development process happens to be
advantageous. But survey results have revealed that suppliers integrated Supplier integration at
any stage in the development process happens to be advantageous. But survey results have
Winter-2015
Get solved assignments at nominal price of Rs.125 each.
Mail us at: [email protected] or contact at
09882243490