Professional Documents
Culture Documents
Food Supply Chain and Logistics - Midterm Exam
Food Supply Chain and Logistics - Midterm Exam
Food Supply Chain and Logistics - Midterm Exam
Instructions :
Section 1 : Objective type- 10 questions (10)
For section 1 & 2 , please use the question sheet itself to mark your answers.
For section 3 , you may use additional sheets. Please attach the rough sheets to
show your workings.
2)What kind of coding system do the ‘dabbawallahs’ of Mumbai use to codify their
boxes ? (Select one)
RFID Barcodes
Name tags A symbol+colour coded labeling
system
3)Amongst the following products , which item has the highest wastage in transit?
Biscuits Potato
Cabbage Tomato
4)Which industry has one of the most complex and specialized and highly
automated supply chain management systems ? (Select one)
6)In the current vegetable/fruit supply chain , who has the highest profit margin ?
7)From which sources can you gather prices of commodities and farm produce?
(Select all that apply)
8)How did the Namdhari’s chain control the supply related uncertainties? (Select all
that apply)
9)What are the standard pick up & drop time commitments offered by the
dabbawallahs ? (Select all that apply)
10)What are the key macro processes involved in a supply chain management ?
(Select all that apply)
11)How do the dabbawallahs optimize the ‘reverse logistics’ issue of carrying the
empty tiffen boxes back to source ?
12)What are the top 4 reasons of why India’s agri supply chain system is ineffective
today ?
13)Mention some of the pre-trip planning done by modern fleet operators prior to
the journey ?
15)Mention any 4 key management lessons which the dabaawallahs teach us.
17)Why do the street push cart vendors do not usually work on Sundays ? (Two
significant reasons)
a) They carry more fruits in first half of month , and more vegetables towards
second half of month
b) They usually work only in first half of the day and take rest or do alternate
professions in evenings.
19)If you are starting a new juice shop next to your college campus, mention any 4
key USP (Unique selling proposition) which you will implement to attract
customers ?
20) Mention any two demand prediction methods
Section 3 : Analytical and Quantitative section
21 ) You are the Purchasing manager for GRT Hotel. They have launched a new 24
hour S.Indian restaurant called ‘Dakshin’ and you are in charge of all procurement
decisions. The following are the assumptions based on the preliminary discussions
with the management and the chefs.Customers can order one or more items in the
menu , in any combination. ( 10 marks)
Vada .5 kg .5 kg 0
Juice 0 1 kg 0
Demand :
The expected number of customers per day and expected breakup of items
purchased are as follows :
Vada 50 50 50 50 100
Coffee 50 75 75 75 150
Juice 30 30 30 30 30
Milkshake 10 20 20 20 10
Costs
Groceries Fruits & vegetables Milk Transport
Please answer these questions and also show the numerical work in rough sheets .
Each question carries 2 marks:
a) Please compute the requirement for groceries, fresh produce & milk for the
first 5 days of operations
b) Please compute the item wise costs for ALL items in menu (excluding
transport). For e.g. Vada’s cost = Cost of grocery + Cost of fresh produce +
Cost of milk= Rs NN)
c) Assume that all these items are being purchased from same supplier and the
truck is sent out to pick each day’s delivery in the morning. What is the
blended cost of transportation/kg for each day ? What is the transport cost
attached to each item (based on its net weight) for each day ? Since the
quantity which is transported varies each day , how does transport cost/item
get affected by it ? Assume that 1 litre of milk = 1 kilogramweight .
d) Given the above data about costs of raw materials & transport , arrive at
breakeven costs for each menu item. Since transport component would vary
with quantity, how will you keep a stable overall price ?
22) Please read the case study and answer the questions that follow. You would
need to validate your answers based on your analysis and interpretations.
INTRODUCTION
McDonald's Corporation, one of the leading global food service retailers with more than 30,000
restaurants in 119 countries had to spend a lot of time planning its operations prior to its entry into the
Indian market in October 1996.US-based fast food giant, McDonald's success in India had been built on
four pillars: limited menu, fresh food, fast service and affordable price. Intense competition and
demands for a wider menu, drive-through and sit-down meals – encouraged the fast food giant to
customize product variety without hampering the efficacy of its supply chain.
Few companies appreciate the value of supply chain management and logistics as much as McDonald's
does. From its experience in other countries , McDonald's was aware that supply chain management
was undoubtedly the most important factor for running its restaurants successfully. Amit Jatia,
Managing Director, Hardcastle Restaurants Private Limited said, “A McDonald's restaurant is just the
window of a much larger system comprising an extensive food-chain, running right up to the farms”.
McDonald's worked on the supply chain management well ahead of its formal entry to India. “We spent
seven years to develop the supply chain. The first McDonald's team came to India way back in 1989,”
said S. D. Saravanan (Saravanan), Product Manager, National Supply Chain, McDonald's India.
In 2005, nine years after it entered India, McDonald's India (McDonald's) opened its 50th outlet at
Faridabad. In the pre-liberalization era, it was difficult, if not impossible, for foreign fast food chain to
set up operations in India. But post-liberalization, McDonald's was able to expand its chain of retail
outlets in the country because of its careful planning of its supply chain operations in India.
a) What form of partnership exists between the McDonald's and those who operate their outlets ?
What in your view was the key behind the development of such an effective partnership? (2.5
marks)
b) Describe the benefits a farmer or supplier gains as a result of their partnership with Mc
Donald's. How did Mc Donald's improve its operational efficiencies as a result of this
partnership? ( 2.5 marks)
c) Why do think it took a global giant like McDonald’s over 7 years to setup the backend supply
chain system in India ? ( 5 marks)