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Guts and Glory Round-1
Guts and Glory Round-1
Guts & Glory
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WHAT YOU NEED TO KNOW
1) Each team should comprise of 3 members who are full time MBA students from the same
institute
2) Multiple registrations are not allowed
3) A person cannot be part of more than 1 team
4) There is no restriction on the number of teams from an institute
5) The time limit for the completion of Round 1 is 90 minutes
6) Deadline: 2330 hrs
7) The question set consists of 7 caselets comprising 23 questions along with a crossword
consisting of 17 clues (In sum ‐ 40 questions)
8) Please make reasonable assumptions wherever required
9) Each caselet begins on a new page
10) The number of marks allocated is mentioned below each question
11) There are no negative marks for incorrect answers
12) A fully solved crossword will fetch 7 bonus marks in addition to 1 mark for every correct
answer
13) For submitting the answers, a link for Google forms will be shared with the participants
14) In the event of a tie, the entry submitted earlier will be given precedence
15) Each team should submit only one entry
16) Results of Round 1 will be announced on February 5th, 2011
17) Upon confirmation of participation, the details of Round 2 will be sent to the teams on
February 6th, 2011
PRIZES
Prizes worth ` 50,000 to be won
Event Website: https://sites.google.com/site/sibmtranscend11/guts‐glory
Event Mail ID: gutsandglory.transcend@gmail.com
Link for Submitting Answers: CLICK HERE
For queries and clarifications, contact
i. 7709391175, Ketan Agarwal
ii. 9665250284, Gurudutt Deshpande
iii. 9689908910, Ankur Rathi
iv. 9922008379, Yash Gupta
v. 9960555648, Jaikishore Sharma
The decision of the organizers shall be final and binding on all contestants
ALL THE BEST
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CASELET 1
JKAYG Inc is an MNC. After a successful venture into petroleum products, the management feels
the need to diversify into other industries to expand their portfolio. You are assigned the
responsibility of coming up with the factory locations among the given options.
Assumptions:
1. We assume that all markets are of equal size.
2. Each supply centre has infinite supply and each factory has sufficiently large production
capacity
Given below are the distances between some major cities.
(Note: Please take into account the manufacturing process of the product for
calculating optimum answer)
The company wants to venture in Cement Sector. Given below are the options:
Raw materials Jamshedpur, Panaji, Tirupati, Raipur, Dispur
Factory locations Nasik, Nagpur, Bhubaneswar, Ahmedabad
Markets Mumbai, Hyderabad, Kolkata, Jaipur, Bengaluru, Chennai
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Q1. What should be their preferred choice of factory location?
(2 marks)
Q2. Which city should be chosen for supplying Raw Materials?
(2 marks)
Q3. Which market place will be the most profitable on equal volumes?
Assume cost of transportation is Rs. 20 / km – tonne and all markets have equal demands.
(2 marks)
The Company wants to enter Retail sector in apparels business. Given below is
some information.
Raw materials Nashik, Raipur, Cuttack, Mysore
Factory locations Udagamandalam, Nagpur, Bhubhaneshwar, Kochi, Kolkata
Market Place Mumbai, Hyderabad, Bangalore, Chennai, Pune
Q4. Where should be the factory located?
(4 marks)
Q5. Where should the company source Raw Material From?
(2 marks)
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CASELET 2
JKAYG Inc has a manufacturing unit located in the Western part of Takshashila at Indira Circle.
The material has to be shipped from the factory to the warehouse located in the Eastern part of
the city on Laxmibai Road. There are 4 roads intersecting at Indira Circle. Starting from Indira
circle, a vehicle travelling on Ambedkar Road in North‐East direction reaches Moropant road at
Kranti Circle in 10 minutes. Moropant road runs East‐West and meets NH‐7 at Nehru circle in 20
minutes. Ali road starts from Indira Circle, runs East‐West, meets Bose Road at Gokhale Circle in
6 minutes and further meets Patel Road at Shivaji Circle in another 15 minutes. Bose Road runs
North‐south starting from Gokhale circle and meets Moropant Road at Kranti circle in 12
minutes.
NH‐7 Runs North‐South. Azad Road which starts from Indira circle meets Bose road at Savarkar
circle which is midway between Kranti circle and Gokhale circle and it takes 8 minutes to reach
Savarkar circle from Indira circle.
Tilak Road starting from Kranti circle runs south‐east and meets NH‐7 at Sambhaji circle in 20
minutes. Bhagat Singh Road starts from Savarkar circle and is directly connected to NH‐7 at
Sarojini Naidu circle by Rajguru Flyover. From Savarkar circle it takes 12 minutes to reach
Rajguru Flyover and further 5 minutes to reach Sarojini Naidu circle. Rajguru Flyover is 15
minutes from Kranti circle and it takes an additional 5 minutes to reach Sambhaji Circle on Tilak
Road. Rajguru flyover passes over Tilak road.
Patel Road starting from Shivaji Circle runs north and meets Tilak Road exactly below Rajguru
Flyover in 6 minutes. It takes 6 minutes to travel from Nehru circle to Sarojini Naidu circle and an
additional 6 minutes to travel to Sambhaji Circle on NH‐7.
It takes 10 minutes to reach Chaphekar Circle, located on NH‐7 from Sambhaji circle on the way
South. Laxmi Road runs East‐West and meets NH‐7 at Chaphekar circle. It takes 5 minutes to
reach the warehouse from Chaphekar circle. NH – 8 runs south east from Indira Circle and meets
NH – 7 at Gandhi Circle in 32 minutes. It takes further 10 minutes in northward direction from
Gandhi circle to reach Chaphekar circle.
Q6. Find the shortest path to travel from Factory to Warehouse.
(12 marks)
Q7. Provide the time taken to travel.
(2 marks)
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CASELET 3
JKAYG Inc has a manufacturing unit at city A. There are two distributors in the nearby areas B
and C. The distances between the cities are given below.
A B C
A ‐ 600 300
B 600 ‐ 400
C 300 400 ‐
Assume W is weight in kg, T is time in minutes, S is speed in km / hr and D is distance in km. The
speed of the truck is a function of the load it carries and the condition of road. The equations of
speed are as follows
Road Equation ( S = )
A B 120 – 0.09W
B C, C A 120 – 0.1W
The truck carries a total weight of 500 kg of items from the factory to the distributors. The
quantity demanded by B is 300 kg and C demands the rest. After delivering the items, the truck
travels back to the factory.
Note: For calculations round off the numbers at every step to the nearest integer.
Q8. To minimize time, which sequence the truck should follow?
(2 marks)
A) A B C A B) A C B A C) Both are same
Q9. If the cost function is given by C = 1000 + 0.3T + 10W, which sequence should the truck
follow to minimize the cost?
(2 marks)
A) A C B A B) A B C A C) Both are same
Q10. If there exists a sales tax proportional to the weight being transported given by X =
0.01WD, which sequence should the truck follow to minimize the total cost?
(2 marks)
A) A C B A B) A B C A C) Both are same
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Q11. Due to maintenance work, the equation for speed on the path between A & B changes to
S = 120 – 0.15W, other equation remaining the same. Due to the bad road conditions, it is
decided to deliver 400kg at city B, the delivery at city C remaining the same. What is the new
path to minimize the total cost considering both the cost function and sales tax based on the
information in questions above?
(4 marks)
A) A B C A B) A C B A C) Both are same
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CASELET 4
Sauron Industries Ltd. is the biggest manufacturer of rings in Middle Earth. It has its production
centre in Shire. Frodo is the manager of the distribution center at Shire and has 3 wagons at his
disposal. The first wagon can carry 300 rings to Rivendell. Another wagon can carry 250 rings
from Shire to Moria. The third wagon can carry 500 rings from Shire to Rohan.
Elrond is the head of operations at Rivendell. He has two wagons, one can carry 150 rings to
Isengard and the other can carry 125 rings to Mordor.
Gimli is in charge for operations at Moria. His first wagon can carry 250 rings to Fangorn. The
second wagon can carry 50 rings to Isengard. The third wagon can carry maximum of 75 rings to
Helm’s Deep.
Theoden is the COO at Rohan and has 4 wagons, the largest fleet of wagons in Middle Earth, at
his service. The wagon en route to Fangorn can carry a maximum of 100 rings. The second
wagon can carry 150 rings to Isengard. The third wagon can carry 100 rings to Gondor. The
fourth wagon on route to Mordor has a maximum capacity of 250 rings.
Galadriel is the manager at Fangorn. She has two wagons, one to Isengard and the other to
Helm’s Deep. The wagons have capacities of 300 rings and 200 rings respectively.
Saruman handles distribution at Isengard. He has only one wagon, which can carry a maximum
of 125 rings to Mordor.
Eomer is the Manager of Helm’s Deep. His first wagon can carry 100 rings to Isengard. The other
wagon that he owns can carry 250 rings to Mordor.
Aragorn is the COO at Gondor. Gondor has only one wagon which can carry 500 rings to Mordor.
Gollum Inc. is the sole retail store at Mordor.
Q12. What is maximum number of rings that Gollum Inc. can receive provided the production
at Shire and the capacities of the wagons at each center?
(10 marks)
NOTE: None of the centers have any previous inventory. No other centre can manufacture rings.
The only factory/ production center is at Shire. Each wagon moves on the road only once.
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CASELET 5
Mercadona is the largest supermarket operator in Spain. It is now setting up
base in India.
Table 1
Amount (in
Inventory Cost Factors Rs)
Maintenance costs for the Warehouse 400
Cost of Capital 1000
Developing and sending POs 200
Electricity Bill of Warehouse 200
Inspection of Incoming Inventory 600
Insurance 200
Inventory Inquiries 100
Obsolescence 100
Phone Bill of Purchasing Department 400
Processing of Incoming Inventory 100
Salaries for Purchasing Dept. Employees 700
Salaries for Warehouse Employees 400
Spoilage 100
Supplies (paper, forms etc) for
Warehouse 100
Supplies for Purchasing Dept. 100
Taxes 250
Theft 100
Wages of Warehouse Workers 400
Q13. Based on the data in Table 1 calculate the Annual Holding Cost.
(2 marks)
Q14. Based on the data in Table 1 calculate the Annual Ordering Cost.
(2 marks)
Table 2 – Inventory Details
2010
Month Beginning of Month End of Month
Jan 1000 1100
Feb 1100 1200
Mar 1200 300
Apr 300 500
May 500 1200
Jun 1200 600
Jul 600 900
Aug 900 500
Sep 500 800
Oct 800 400
Nov 400 300
Dec 300 1200
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Table 3
Company plans to work for 365 days.
Total 10 orders to be placed in a year.
Q15. Based on Tables 2 & 3 calculate the Average Inventory.
(Round off only the final answer to the next nearest integer)
(2 marks)
Table 4
Jan 1034
Feb 1174
Mar 845
Apr 355
May 497
Jun 834
Jul 174
Aug 537
Sep 823
Oct 395
Nov 267
Dec 472
Q16. Based on Tables 1, 2, 3 & 4 calculate the EOQ
(Round off only the final answer to the next nearest integer)
(2 marks)
Q17. If product X has a normally distributed demand during the Reorder Period, the average
demand is same as before while the standard deviation is 5 and the lead time is 10 days. What
should be the ROP assuming that company requires service level of 95%?
(Round off only the final answer to the next nearest integer)
(4 marks)
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CASELET 6
Given below are the financials for four companies:
Balance Sheets
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Profit & Loss Statements
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Q18. Which firm has the least cash to meet its short‐term obligations?
(2 marks)
a. ABC Inc
b. DEF Inc
c. GHI Inc
d. JKL Inc
Q19. Which of the four firms is the fastest in converting its working capital into revenue?
(2 marks)
a. ABC Inc
b. DEF Inc
c. GHI Inc
d. JKL Inc
Q20. State the Days of Working Capital as found out for Q19
(5 marks)
Q21. Calculate the working capital as a percentage of annual sales for DEF Inc
(3 marks)
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CASELET 7
Given below is the customer‐order data consisting of 100 records for JKAYG Inc.
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Q22. Identify and measure a service‐level metric that captures the backlog and the time it
takes to fulfill it.
(2 marks)
Q23. For a 98% Service Level Requirement, what is the highest value that the forecast error
can take if the company intends to maintain safety stock not greater than the highest order
placed? (Assume that the delivery time is 3 days)
(4 marks)
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CROSSWORD
(1 mark for each clue and 7 bonus marks for completion)
Across Down
3. Suppliers such as AT&T (prior to break‐up) and 1. The most important KPI for reverse logistics
DeBeers can create the need for _________ in 2. Platform for SAP applications
supply chains 4. Name the logistics firm from their logo
5. Captain Gopinath's new venture in Logistics
7. Connect
6. Connect
10. Greater storage density requires this kind of
manual storage solution in a warehouse
13. Low lead time but expensive supplier
14. A Bill of lading without mention of title is a
________
8. FreightMatrix, for example
16. Inventory at the distributor and retailers
9. A turnkey logistics solution
associated with the corresponding distributor
11. Demand tracing by date, quantity and warehouse location
17. When LTL carriers are used to transport
12. This is a tool used in Six Sigma during the measure phase
parcels to parcel carrier's hub near the final
destination of the load, it is called _________ 15. In a Generic Product ‐> Modular Product scenario, the supply
chain that yields best results (reflected by the performance
of Benetton) is ________
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