Ganesha Classes Logistics & SCM Prelims Question Paper 2014

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   2 ½ Hours                                          Ganesha Classes                              Total Marks:75


N.B.:      1)      Q.2. to Q.4. having internal option.

         2)   All Questions are compulsory

         3)   Specify notes and assumption (if any)




Q.1.     Explain the following Concepts : (Any 5)                                                                              (15)

  1. Movement consolidation b. Supply chain management
  2. Objectives of logistics network analysis d. Minimum variance
  3. Re engineering f. ABC analysis
  4. EDI


Q.2.           M/s Excellent Dashboard Private Limited (EDPL) is situated at Gurgaon in Delhi. The company supplies dashboard assembly as 4PL supplier to Maruti Udyog Limited (MUL) since past 3 years. There are number of components in the dashboard like speedometer, level gauge, etc. EDPL purchase these individual components from various suppliers and assembles them at their works for onward supply to MUL.

One of the major components namely “Starter Switch” is always the problem. Since the EDPL does not observe any Systematic Inventory Control Methods in their purchasing activities, they just order the quantity as and when the demand arises. As this product is not available off the shelf, many times delays occur in arranging for MUL. This in turn, results into financial loss to EDPL due to penalties imposed by MUL as per the agreement, towards delays in supply of Dashboard Assembly.

The information gathered from EDPL shows that the annual demand of the item, Starter Switch is 5000 nos. The unit price of the item is Rs. 50 each. The inventory carrying cost and ordering cost is 20% and Rs. 40 per order respectively.


  1. Explain the role of Fourth Party Logistics in the above case.
  2. How EDPL can avoid financial penalties imposed by MUL?
  3. Calculate Economic Order Quantity (EOQ) for the item under reference, by using the available information.


Q.3.     (a)  “Logistics competency can be achieved by co-coordinating information, transportation, and inventory into network design.” Discuss.                                                                (08)

(b) Explain various factors influencing transportation cost.                                                   (07)




Q.3.     (p)  What is EOQ? Explain it with various assumptions and limitations.                               (08)

(q)  What are the different transportation network option?                                                    (07)


Q.4      (a)  Enumerate importance of supply chain management.                                                      (08)

.           (b)  What is Q system (fixed order quantity system) of inventory management? Explain with the

help of formulas.                                                                                                               (07)




Q4.      (p)  Discuss in detail different types of material handling equipments.                                  (08)

(q) How to measure logistical performance of an organisation?                                             (07)


Q.5.     Short Notes:  (Any 3)                                                                                                             (15)

  1. Reverse Logistics b. Economic benefits of warehouses
  2. Logistical Information system d. Mission based costing




                                                All the best…..


                                                                                   ……. Ganesha Classes

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