ATLAS COPCO INDIA LIMITED – OPERATIONS MANAGEMENT INTERNSHIP

QUETSION PAPER

Total Marks: 50 Duration: 90 minutes

Q 1. Explain JIT Vs JIC inventory strategy with pros and cons. Under what circumstances each strategy is
preferred? Explain in brief. 10 marks

Q 2. What are the factors which contributes to generation of non-moving and negative inventory? What
are the ways to prevent? 10 marks

Q 3. Why agility is important in supply chain? Explain in brief agile planning horizon?
10
marks

Q4. 10 marks

ABC is a leading global force in the manufacture and supply of agricultural machinery. The company
grew substantially over the course of two decades, achieving a considerable portion of that growth by
way of acquisitions.
As commonly happens when enterprises grow in this way, ABC experienced increasing degrees of supply
chain complexity, along with associated increases in cost, but for many years, did little to address the
issue directly, primarily due to the decentralized and fragmented nature of its global network.
In 2022, ABC’s leaders recognised that this state of affairs could not continue and decided to establish a
long-term program of strategic optimisation.
Supply Chain Cost Reduction Challenges: With five separate brands under its umbrella, ABC’s product
portfolio is vast. At the point when optimisation planning began, sourcing and inbound logistics were
managed by teams in various countries, each with different levels of SCM maturity, and using different
tools and systems.
As a result of the decentralised environment, in which inbound logistics and transport management
were separate operational fields, there was insufficient transparency in the supply chain. The enterprise
as a whole was not taking advantage of synergies and economies of scale (and the benefits of the same).
These issues existed against a backdrop of a volatile, seasonal market.

Explain in brief how can you contribute to optimize Supply chain cost of ABC organization ?

Q.5 MCQs (2 marks each) 10 Marks

5.1 What is "Lead Time" ?

1 Materials Transportation Time in transit

2 Time needed from "felt of the need to fulfilment of the need"

3 Cycle counting time.

4 None of these
5.2 Which of these is not the cost of Inventory holding?

1 Warehouse Cost

2 Transportation

3 Security costs

4 Ordering Cost

5.3 Which of these costs are not added in stock valuation?

1 Material handling costs

2 Freight costs

3 Factory overhead costs

4 Selling Costs

5.4 The "INVENTORY" is

1 Fixed Asset

2 Floating Asset

3 Current Asset

4 Moveable Asset

5.5 What is "Cycle Counting" in Inventory Control?

1 Method of checking the stock levels.

2 Method of knowing Lead Time for an item

3 Method to know consumption of an item.

4 None of these