Logistics prelim 2



Section 1:-

  1. Explain the following-(5×3=15)
    1. Terminal delays
    2. Logistics park
    3. P and Q system of inventory management
    4. Pipeline inventory
    5. ABC costing


2. Read the case and answer the questions below:- (5×3=15)

M/s Excellent Dashboard Private Limited (EDPL) is situated at Gurgaon near Delhi. The company supplies   dashboard assembly as a 4PL supplier to Maruti Udyog Limited (MUL) since the past three years. There are a number of components in the dashboard such as speedometer, fuel level gauge, etc. EDPL purchases these individual components from various suppliers and assembles them at their factory. It then supplies the finished product to MUL. One of the major components, namely, the “starter switch”, has always been a cause of problem. EDPL does not observe any Systematic Inventory Control Methods in purchasing of various items of inventory. They order the required items of inventory as and when the demands for those inventories arise. At EDPL, dashboards are not available off the shelf. Hence, many times delays occur in arranging for supply of required quantity of assembled dashboard to MUL. This, in turn, results in a substantial financial loss to EDPL since, as per the agreement signed between EDPL and MUL, MUL can levy penalties towards delays in the supply of required quantity of dashboard assembly.

The information gathered from EDPL shows that the annual demand of the item, namely, starter switches, is 5,000 nos. The unit price of the item is Rs. 50/- each. The ordering cost is R. 40/- per order. The inventory carrying cost is 20% of the unit cost of inventory.


1) Explain the role of Fourth Party Logistics in the above case

2) Discuss various logistical ways in which EDPL can avoid penalties imposed by MUL

3) Calculate the EOQ for the item under reference from available information. Can this EOQ be used to decide on the levels of stock to be kept at hand? What steps should be taken to avoid faults in the starter switches?


Section 2 (Answer any 3 questions)(3×10=30)

  1. A.What are the various types of logistics

b. Logistics VS SCM


2. What are the different factors considered for the location and layout of a warehouse

3. A. Elaborate the various types of inventory control techniques

B. Assume Alpha to be 0.7, compute the demand for the 7th month

Month                  1              2              3              4              5              6

Demand               24           39           50           70           99           120


4. A. what are the internal performance control/measurement techniques

B. What are the different types of material handling equipments?


For any questions, you can contact: Prof Vipin Saboo  –    9820779873


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Education Qualification: BMS- N M College (University Rank Holder) PGDBM- Sydenham College M Com- College topper Mr Vipin Saboo has been associated with the following institutes as a visiting faculty Lords college, Malad Patkar College, Goregoan Saraf college, Malad Dalmia college, Malad St Andrews College, Bandra Wilson College, Grant Road Thakur college, Kandivili L N College, Kandivili N K College, Malad Dhanukar College, Vile Parle St Xaviers College, Marine Lines Shroff College, Kandivili KES College, Khar Mr.Vipin Saboo also has more than 5 years of industry expertise with corporate like CRISIL, Motilal Oswal Investment Banking and Yes Bank. Mr. Saboo has also published a text book on Logistics and Supply Chain Management for TYBMS Students.
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