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AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724
SUBJECT :Logistics Management
Total Marks: 80
Case 1 (10 Marks)
- 1. If you are appointed as the logistics consultant, then advise M/s BPL in respect of ‘
(a) How to achieve economy in transportation, by maintaining almost same service level?
(b) Demand Forecasting technique to take care of seasonality, reduction in inventory.
(c) Information technology to substitute maintenance of high inventory without affecting customerservice level.
(d) Connectivity between factory and depots (networking Diagram)
Answer: M/s. Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints for households, commercial premises and industrial application. The main problem which has been clearly been outlined is the fact that they have overstretched their distribution way beyond their supplying means. One manufacturing facility providing 25 distribution centres!!!! – Too much. This has also pumped up their transportation costs. The best solution i think is to set up 2-3 more manufacturing facilities in areas i.e Pune facility for the western stores, 1 for northern stores, 1 for southern and the last for eastern. These facilities will reduce the transportation costs, set in the economies of scale thus reducing production costs and also help
Case 2
(10 Marks)
In case you are appointed as logistic consultant to solve the problems, you are required to put forwardyour suggestions for:
(a) Proper transportation policy to ensure minimum transportation loss of vegetables and poultry productsand reduction in the packaging costs.
(b) Demand Forecasting techniques to take care of the seasonality, reduction in inventory and shortageand other related problems.
(c) Suggestion for improved Purchase and Distribution policy.
(d) Is it advisable to have company owned dedicated transport fleet?
Answer: ABCL Ltd. Is leading/ Fast Food Processing Company operating from Thane. It is involved in the fast food business since last 10 years and has tie up with a foreign firm operating in the same field. It handles both Vegetable as well Non—Vegetable products for which it arranges the vegetables and chickens from the local vegetable vendors and poultry farms as well as from far off places like Nasik, Pune and Aurangabad. It has very good market in Mumbai, Pune and surrounding cities.
(a) Transportation and storage problems are identified as
Case 3
(10 Marks)
- (1) Evaluate the alternative solution that could be considered by Mr. Mohan.
Answer:Mumbai Flour mills, provide high-quality bakery flours to commercial bakers as well as to the consumer market. The commercial buyers have consistent demand and brand-loyalty, whereas consumers have minimal brand-loyalty but also generally prefer known names over store brands. Demand is seasonal for the flours with the annual break occurring just before Diwali and slacking off dramatically during January and February. To offset these both, Mumbai Flour Mills and its major supermarket chain-accounts carry out special deals and sales promotions.
The Production planning Dept. of the company located at Akola, Maharashtra, has the responsibility for controlling the inventory levels at the plant warehouse at
- (2) What additional solution do you propose?
Answer:Reduction: Whereas DON-infected wheat kernels can be identified and removed in the wheat cleaning process, other forms of microbial contamination cannot be seen. Several treatments of wheat during the cleaning process are being investigated and researched to determine their effectiveness in lowering the microbial load of flour.
One processing method that has proven effective is aggressive scouring or abrasion of the wheat to remove the outer layers of bran prior to milling.
- (3) Examine the transportation system and its drawbacks?
Answer:Recently the company has experienced two major stock out for its consumer-size 5 Kg. sacks of refined quality white flour. One of these was due to problems in milling operations, the other occurred when marketing initiated a “buy one, get one free” coupon promotion. Since these events, the planning has become overly cautious and errs on the side having excess inventories at the distribution centres. Additionally, two other events have affected Distribution Centre’s throughput:
(1) implementation of direct factory supply for replenishing the five largest super market chains, and (2) a price increase making Mumbai Flour more expensive
Case 4
(10 Marks)
(i) Examine the possibility of alternatives in transportation of the inbound and outbound materials?
(ii) How to reduce the cost of inbound and outbound logistics functions?
(iii) What could be the major problem in exploiting the inbound and outbound logistic functions?
(iv) Is it advisable to have dedicated transport system to operate packaged materials mainly for thecompany?
(v) What arrangements have to be made to ensure the service quality for customers?
Answer:M/s Modern Garments is the manufacturers of Ladies and Gents garments like shirts, tops and undergarments etc. The technology is advanced and there are several players with access to such latest technologies. The supply chains for M/s Modern Garments includes significant purchases of raw material, stitching, packaging and supply to customers. The logistics functions are the key competitive elements in the market, M/s Modern
(ii) How to reduce the cost of inbound and outbound logistics functions?
A Collaborative Resource
Because of their unwieldy size, and lengthy preparation and printing time, many routing guides are already outdated by the time they are distributed. In an attempt to stay current, some shippers issue supplements and revised pages throughout the life of the guide.
As cumbersome and impractical as this process is for the issuers, it is at least as painful for the recipient. Neither buyer nor seller can deploy changes quickly, or even place the changes into a workable process. If getting the information out on time is impossible, it is equally impossible to take advantage of significant transportation opportunities that are available throughout the shipment’s entire life.
(iii) What could be the major problem in exploiting the inbound and outbound logistic functions?
Inbound logistics refers to the transport, storage and delivery of goods coming into a business. Outbound logistics refers to the same for
(iv) Is it advisable to have dedicated transport system to operate packaged materials mainly for thecompany?
Now in the market only garments with good delivery quality are acceptable. All the competitors have equally good quality product in the market. Presently the area of logistics distribution, customer service and satisfaction are the area of prime concern in order to have extra value addition to the product. The product defects due to stitching, cutting and transportation are now under increasing scrutiny. From the cost control point
(v) What arrangements have to be made to ensure the service quality for customers?
Due to product variations, the order fulfillment and its processing is of considerable importance. The traditional information system has become inadequate. There are over 500 retail outlets through which the finished products are distributed with the help of more than 50 transporters. Lead- time variability is creating problem of buffer stocks• with distributors. The transit time fluctuations are due to the breakdown of trucks, improper documentation and unfair practice of over charging of the vehicles etc. Such variability has to be reduced.
Case 5
(10 Marks)
- 1. What are the company’s present logistical problems?
Answer:‘The company has four state-of-an-art manufacturing plants accredited with ISO certification & backed by strong technical support from their foreign collaborators. The company is also having a well established all India distribution network consisting of numbers of dealers. The products flow from the manufacturing plants to the warehouses, managed & maintained by the company, located at different places across the country. The dealers draw their requirements from these warehouses for onward delivery to their
- 2. Give your recommendations for improving the company’s logistical performance?
Answer:Fierce competition in today’s market has forced business enterprises to invest in and focus on supply chains. The growth in telecommunication and transportation technologies has led to further growth of the supply chain. The supply chain, also known as the logistics network, consists of suppliers, manufacturing centers, warehouses, distribution centers and retail outlets, as well as raw materials, work-in-process inventory and finished products that flow between the facilities.
The logistics management takes into consideration every facility that has an impact on cost. It plays an important role in making the product
Case 6
(10 Marks)
- 1. Identify the main logistical problems of the Company
Answer:After the liberalisation of the Indian economy in 1991, the entire business scenario- particularly in consumer durable industry – has undergone a drastic change. The company started experiencing the pressure of competition from local as well as international players. It was observed that during the last 5 years sales growth has come down and the company is losing its market share slowly& steadily. The external agency that conducted a study for the Company came out with their following observations.
- At all levels in the company employee orientation is towards production rather than marketing
2 The cost of product distribution is the highest compared to the Industry standards
- The warehouse space was urderutilized — the utilization factor varies between 95 % during the peak season and drop to 40% during the slack season.
- 2. To offer better customer service level and reduce the operating cost, how will you go aboutredesigning the distribution network?
Answer:1967 M/s. Vijay Enterprise ventured into trading of electronic consumer durable targeting the large potential market in the year 1970, the company managed to get the exclusive dealership of a leading electronic manufacturing company in India to market their products in the Western Indiá. Later on, the company with a view to create their own brand in the market established a plant in Maharashtra & started their own manufacturing activities. With a manufacturing capacity under their belt, the company increased their turnover
Case 7
(10 Marks)
- 1. What is the main problem in this case? What are your suggestions to the company on inventorymanagement?
Answer:M/s. Decorative Laminates Corporation (DLC) is a supplier of decorative sheets for wooden furniture makers in domestic as well as commercial markets. In spite of competition in this field their sales volumes shown growth during last 2 to 3 years. The last year was recorded 15% more sales compared to previous year. Even though the sales volume are increasing the profit margin is getting reduced day by day due to future competition.
In one of the monthly management review
- 2. What type of logistical cost approach you would suggest to the company?
Answer:Intrafunctional logistics focuses on the coordination of the inbound logistics and material management as well as cost efficient distribution while supporting the customer service’s goals. All of these activities are coordinated in many different ways and often logistics managers use the total cost approach to find the most cost effective solutions.
The total cost approach is generated the idea that all activities that are found within the moving and storing of goods and products need to be thought of as a whole, their total cost. It uses cost trade-offs, when logistics expenses may increase in one area
Case 8
(10 Marks)
- 1. What are the main problems in the logistical network of M/s. Compu-Tech?
Answer:M/s. Compu-Tech is on the reputed Indian companies producing various types of computer printers. Their production plant is situated at Noida in northern India and the products are distributed through distribution centers located in every region. The company introduced LS popular line of Desk Jet printers first time in India in 2005. Immediately on the launch of this products.
The solo more than one lacs units during that year. But the
- 2. What solutions would you propose of overcome these problems?
Answer:To see lean perfected – study the NASCAR pit. In a matter of seconds, the pit crew has changed tires, wiped down the windshield, filled up fuel, and given the driver a drink of water. Everything is in the right place at the right time. If only every distribution center would run that smoothly. What’s clear is that mastering inventory levels is central to the equation of eliminating waste, but inventory management is becoming a vexing problem for some organizations – compounded by multi-channel distribution, inadequate demand forecasting, and a lack of communication among appropriate parties.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )