1.

Short Answer Type Questions: 

1(a). A company is into manufacturing an antibiotic product. This is for veterinarian
purposes. During floods when animals such as cows, buffalos, or other bovine species
have digestive disorders, this medicine is very effective. If you were to give a thought
to having a supply chain designed for this company, what will be your choice-
responsiveness or efficiency. Ideally, how will you balance these both? 

Responsiveness. Because in situation like floods, number of affected animals from

digestive disorders will be very high. So supply chain designed for such situation
should be able to meet the requirement at the earliest possible. So responsiveness
will be the choice.

1(b). Consider the situation of a pharmaceutical manufacturer. The basic raw material
is abundantly available and comprises almost 75% of the total cost of the finished
product. However, they also require some other ingredients that are not very
expensive and also are required in small quantities but are available only seasonally.
From the ABC, SDE, and SOS inventory model strategies, what type of inventory
strategy you would suggest to this company and why?

SOS inventory. Because, basic raw material which is abundantly available will not
required to maintain inventory. It can be purchased as per the requirement. But
ingredients which are available seasonally only should be procured seasonally .
Therefore SOS inventory model is suggested.
 
2. Following data is sourced from the regulatory authorities. Using this data, build the
below-given forecasting models:
 Naive Forecast
 2 Months moving Average
 Exponential Smoothing (alpha =0.3)

 Out of the above three, which model will give the most accurate results( Using MAD-
Mean Absolute Deviation to compare the models)
As per the attached excel analysis for all three types of forecast methodologies,
mean deviation is lesser for exponential smoothing methodology. Therefore
exponential smoothing forecast will give the most accurate results.
 

3. Below are the details of the inventory of a store dealing with automobile spare
parts. Using the concepts of ABC analysis, categorize the spare parts into A, B, and C
categories. (If required, you may have assumptions, but do mention them in your
answer) 

Unit
Annual
Sno. Item Cost
Usage
(Rs)
1 Oil Filter 2200 150
2 Head Lamp 395 140
3 Fuеl Filter 270 95
Rod
4 1430 45
Bearing
5 Air Filter 860 120
Wind
6 12000 90
Screen
7 Piston Rink 4500 250
8 Bumper 8000 110
Main
9 1130 120
Bearing
10 Bush 169 1160
As per the ABC analysis, articles which cost upto 80% comes under A category, 80-
95% comes under B category and 95-100% comes under C category. There as per
the calculations, Wind Screen, Piston Rink & Bumper will come under A category.
Oil Filter, Air Filter, Main Bearing & Bush will come under B category and Head
Lamp Fuel Lamp, Rod Bearing will come under C category.

4. Here is the data of Tata Motors and Ashok Leyland. Compare the year-wise
performance of these two companies based upon the techniques covered in SCM.
Also please state which company is doing better and why? 
 Tata Revenue (in Cr.)
80000
70000
60000
50000
40000
30000
20000
10000
0
2015 2014 2013 2012 2011

Leyland Revenue (in Cr.)

16000
14000
12000
10000
8000
6000
4000
2000
0
2015 2014 2013 2012 2011

Undoubtedly Tata Motors is doing better. It is reflecting in Revenue and as well as in

inventory turnover ratio.
5. Here is the data of passenger traffic of a very busy international airport. Using MS
Excel build-in Forecast Sheet, forecast for next 5 years for domestic and international
passenger traffic. Share insights on your forecast.  
Excel attached. Forecast sheet shows a straight line.
6. Demand for the Carrom Board at a sports shop is 500 units per month. This shop
incurs a fixed order placement, transportation, and receiving cost of Rs. 4,000 each
time an order is placed. Each carrom board costs Rs. 500 and has a holding cost of 20
percent. Evaluate the number of carrom boards that the store manager should order
in each replenishment lot? Secondly, also calculate the total cost for EOQ.

EOQ = 693 units

Total Cost= 3,63,825Rs