University of Management and Technology

Sialkot Campus
End-term Exams – Spring 2020 Control No.______

Managing Supply Chain

Course Code :SM 615 Duration (Maximum): 04:00 Hour
Program : MBA Section :
Room No : Total Marks : 30
Resource Person: Usman Ehsan Date : 15-7-2020
Student’s Name: _____________________ ID: _____________ 19014032009
__ Abdullah Naeem______

Concluding Remarks
I am writing this thank you note as we text so that you can feel the way I feel for you 

Sab se pehly mein ap sab bachon ka bohat bohat shukriya adaa kerna chahta hon aur shabash be dena chahta hon k ap
sb bachon ne bohat bohat respect di aur cooperation ki is sari tens halat mein. Physical class se online class perna koi
asaan kam nahe tha but ap logon in is course mein bohat acha parha sari classes attend ki (khuch ne last five minutes
attend kein  , sari assignments b ki (khuch bachon ki late b thi –  but sab ne sab kr li) – once again shabash. Muje jab
ye course mila tha I was so excited that I can help students in their businesses like getting more profit through managing
operations and muje umeed ha k khuch thora bohat help zaror howa ho ga but utna nhe jitna I wanted because of
limitations of online situation. Meri tarf se bohat bohat shabash Allah ap ko bohat kamyab karey Ameen.

Instructions
Please keep one print copy to save your time while answering the questions.
While answering the questions; Just focus on the case study and concepts taught in class.
Answer the questions ONLY as the space provided.
You can contact me anytime if you face any difficulty at my mobile.

Question No. 1: Explain the structure of TSC supply chain & its dynamics in details. Also do capacity analyses?
[10 Marks]

Question No. 2: Explain the corporate strategy of TSC and also in terms of their future plan with relation to supply chain
strategy and planning. [10 Marks]

Question No. 3: Consider the diagram; suggest which sort of supply chain is ideal for TSC; justify your answer with
numbers that which supply chain you suggest for TSC? [10 Marks]

Question No. 4: Considering the future growth of 20%, suggest how they can plan to cover their space issues keeping
inconsideration the details given? [10 Marks]
 University of Management and Technology
Sialkot Campus
End-term Exams – Spring 2020 Control No.______

Question No. 1: Explain the structure of TSC supply chain and its dynamics in details. Also do capacity analyses
[10 Marks]
The structure of supply chain was based on supplying from 650 suppliers those supplied 23000 different sku to
tcs. The company mostly outsourced its items from local suppliers but had plan to move in international
market to expand its reach. they wanted to move there one third supplying from north America within three
years. But right now it was all local. The London Dc was 74000 square feet with an additional 22000 square
foot yard area. 75% sku were shipped to DC while the other 25% were shipped to stored directly by the
suppliers so there was no need to receive them in the DC. The DC had three areas which were pick and pack
high cube and yard. Pick and pack had 13365 inventory storage places with average size of 0.07cubic feet
while high cube had average size of 0.75cubic feet sku handling. Both have 50$ and 20$ per cubic feet cost.
The least cubic feet cost belonged to yard which was 10$. All parts had 75000, 210000 and 130000 cubic feet
space respectively. Now let’s talk about capacity issues in the TCS. There are a few supply chain problems that
compromise the development plans of TSC. These are significant stock outs for both the stores and DC.
Further, the administration level at the DC is just 65%, inventory is too much. inventory turnover is just two
time per year. There are incapable instruments and procedures for compelling stock administration. There was
bad restocking of inventory. Working capital is tied up so supplier payment limits can't be benefited of. There
is absence of effectiveness in overseeing information and data, restocking procedures and capacity planning.
The clarification is that stock-outs lead to failure to satisfy orders. This prompts lost open doors for
development and gainfulness. Not just that stock outs cause client disappointment. This decreases the profit
of TCS. Slow stock turnover implies that there is requirement for higher working capital, this builds costs and
diminishes profit.
If we observe Exhibits 5-7 then this year there will be issues in yard and next year issues will be in high cube
area. These l issues will majorly affect TSC activities and capacities to serve their stores when it attempts to
deal with the development anticipated the following three years. These issues additionally majorly affect TSC
activities when for example seasonal sales spikes suddenly. These issues will majorly affect TSC activities when
the firm endeavors to actualize the corporate strategy of growth which is to grow 20% in next three years. In a
nutshell when the arrangement for extension was actualized.
 University of Management and Technology
Sialkot Campus
End-term Exams – Spring 2020 Control No.______

Question No. 2: Explain the corporate strategy of TSC and also in terms of their future plan with relation to supply chain
strategy and planning.
[10 Marks]

The corporate strategy of TCS is to double the number of stores in the next three years and they want to have
a supply chain system which can support it. TCS was a niche player but after the start of project 275 the wan
to become a national players by having 250 to 300 stores nationwide. Growth objective is to have 75 stores in
the end of 2010 and in 2008 the average age of each store will be 2.6 years. Now there future plan is to
outsource items form international suppliers too as right now it is dominated by local suppliers but there are a
lot of opportunities in north America and Asia.
The major component of project 275 is DC storage. Last year TCS handles 1700 truckload of inventory and 75%
of it was handled by DC center. Now when there will be even more supply in coming years then TCS need to
have capability to efficiently and effectively move inventory through supply chain.
There are a few alternatives that are being considered at present, for example, building up another DC,
extending the current DC, and setting up a agreement out with one of the third party logistics company so as
to deal with the overcapacity issue faced by the London DC. The supply chain technique that is required should
bolster corporate development and goals including venture 275 and the worldwide sourcing activities. The
exercises which can be taken care of inside and the exercises which should be redistributed to outsider should
be recorded down as it will help in concluding the gracefully chain technique.
 University of Management and Technology
Sialkot Campus
End-term Exams – Spring 2020 Control No.______

Question No. 3: Consider the diagram; suggest which sort of supply chain is ideal for TSC; justify your answer with
numbers that which supply chain you suggest for TSC? [10 Marks]

total Sku % cost cube Cost per sku shipment

yard 371 2 11 47 0.18 10
direct 5883 26 24 1.08 25
Pick and pack 13143 57 26 8 2.19 25
High cube 3498 15 39 45 0.38 40
total 22895 100 100 100 100

In pick and pack area we go highest inventory 13143 which

High GMRIis 57% of total inventory and cost of that is 26%
but when we see at high cube we can see that although it has 15% inventory but the coast is 39% which is way
high when we compare it with others. So we need to go with pick and pack area. This will place us on high
return on margin of space and low return of investment. Again here we need to know that as we discussed
before too that TSC should set up a new distribution center at the stake of its Gross margin. The utilization of
all space available in the DC is also very important. The more the sales flowing system TCS will have the better
it is for corporate goals.

High GMROS Low GMROS

Low GMRI
 University of Management and Technology
Sialkot Campus
End-term Exams – Spring 2020 Control No.______

Question No. 4: Considering the future growth of 20%, suggest how they can plan to cover their space issues keeping
inconsideration the details given? [10 Marks]

They need to embrace the system of setting up another DC in an alternate market. This DC would be a
distribution place that would deal with both pick and pack and high cube SKUs. The plan to be that in another
market that has a decent potential for development and the setting up of another DC would empower TSC to
accomplish its objective of extension and benefit. Another market implies expanded incomes. Further, the
additional pick and pack center will be useful during the occasional sales spikes in the current year. In the
following year the extra capacity will be helpful for the high cube SKUs too. There are numerous advantages
and disadvantages for every one of the alternative but, the most prescribed choice right now is to concentrate
on the development of the current dc. This is on the grounds that this will be less costly that setting up a
totally new structure. Also, the extension would be custom-made to the particular future needs of the
organization and the expanded space, which would be made, is going to help in the achievement of the
objectives of 275.
3pl can be used as a short term solution or as a stop gap while finding another method for expansion. The
activities which can't be taken care of inside in the dc should be given to the 3pl to complete it with no
postponements. This alternative can help the company for short term logistics and spacing issues.
Some of the most appropriate options are as following to counter the space issue in the future
The options that can be considered for expansion are:
• Outsourcing to Third-party logistics
• Expand the current DC
• Establish another DC
• Create a hybrid DC