The document is an examination paper for a logistics management course. It consists of 7 questions testing concepts related to supply chain management, inventory management, transportation, and outsourcing. Students are instructed to answer all questions in the 3 hour examination unless otherwise noted.
The document is an examination paper for a logistics management course. It consists of 7 questions testing concepts related to supply chain management, inventory management, transportation, and outsourcing. Students are instructed to answer all questions in the 3 hour examination unless otherwise noted.
The document is an examination paper for a logistics management course. It consists of 7 questions testing concepts related to supply chain management, inventory management, transportation, and outsourcing. Students are instructed to answer all questions in the 3 hour examination unless otherwise noted.
The document is an examination paper for a logistics management course. It consists of 7 questions testing concepts related to supply chain management, inventory management, transportation, and outsourcing. Students are instructed to answer all questions in the 3 hour examination unless otherwise noted.
SUBJECT-SPECIFIC INSTRUCTIONS 1. Answer all the questions unless otherwise instructed. 2. Read the questions carefully before attempting their answers. 3. You may answer questions in any sequence, but you must keep the numbers the same as in this examination paper. 4. Clearly number the questions and any sub‐questions, using the same numbering used in this examination paper. 5. Draw a line after each completed question. If you decide to change the answer to a question, a clear line must be drawn through the answer you do not want to be assessed. 6. Rough work – Do this in your examination answer book and clearly indicate that it is not part of your answer by drawing a line through the rough work after you have answered the question.
GENERAL INSTRUCTIONS 1. Notes, files, textbooks or any other such aids are not allowed in the examination room. 2. Mobile phones (cell phones), computers and iPads/tablets are not allowed. 3. Calculators are allowed. 4. Please remember to write your name, surname and student number on the examination script (answer book). 5. Use only a black or a blue pen. Do not use a pencil to answer questions. 6. By accepting this examination script, you agree to abide by Southern Business School’s Rules and Regulations, including those governing examinations.
DO NOT TURN THIS PAGE UNTIL INSTRUCTED TO DO SO!
LOG500 THIS EXAMINATION PAPER CONSISTS OF THREE PAGES LOGISTICS MANAGEMENT V INCLUDING THIS COVER PAGE (THIS IS PAGE 1 OF3). LOG500 – LOGISTICS MANAGEMENT V EXAMINATION PAPER – 2019 FIRST SEMESTER
Question 1 [5] Seven-Eleven operates a successful business in Japan. One of the reasons for its success is that it does not allow direct store delivery in Japan but has all products flow through its distribution centre. What benefit does Seven-Eleven derive from this policy? When is direct store delivery more appropriate?
Question 2 [5] Consider the example of two diamond retailers selling their products online, namely Blue Nile carrying diamonds priced at $2 500 or higher, as opposed to the large proportion of products sold from Tiffany’s website priced around $200. Which of the two product categories is better suited to the strengths of the online channel?
Question 3 [30] Predictable variability, such as the demand for planters and combine harvesters manufactured by John Deere, can be managed using two broad options, namely supply management and demand management. Discuss these two options for handling predictable variability, and use appropriate examples to illustrate how these options are applied in practice.
Question 4 [8] Four common collaborative planning, forecasting and replenishment (CPFR) scenarios are listed in the table below. You need to correctly indicate where each scenario listed in the left-hand column is applied in the supply chain (middle column) and the industries in which each is applied (right-hand column) by redrawing the table in your answer book and writing the letter of the correct options in the appropriate blocks of the table. Select the correct letter in each case (a, b, c or d) from the two lists of options that follow the table below.
CPFR scenario Where applied in Industries where
the supply chain applied Retail event collaboration DC replenishment collaboration Store replenishment collaboration Collaborative assortment planning
Options for where applied in the supply chain:
a) Retail DC or distributor DC b) Highly promoted channels or categories c) Apparel and seasonal goods d) Direct store delivery or retail DC-to-store delivery Options for industries where applied: a) Department stores, speciality retail b) Pharmacies, hardware, grocery c) All industries other than those that practise EDLP d) Mass merchants, club stores
THIS IS PAGE 2 OF 3 LOG500 – LOGISTICS MANAGEMENT V EXAMINATION PAPER – 2019 FIRST SEMESTER
Question 5 [12] Safety inventory is inventory carried to satisfy demand in excess of the forecast amount. Please answer the following questions related to safety inventory. 5.1. What are the three key questions that need to be considered when planning safety inventory? (6) 5.2. Compare and contrast the levels of safety inventory required for milk and spices. (6)
Question 6 [20] All transportation decisions in a supply chain network must take into account their impact on inventory costs, facility and processing costs, the cost of coordinating operations, and the level of responsiveness provided to customers. Discuss the choice of transportation mode as a fundamental supply chain decision in the transportation- inventory cost trade-off.
Question 7 [20] The decision to outsource is based on the growth in supply chain surplus provided by the third party and the increase in risk incurred by using a third party. Identify and briefly describe various mechanisms that third parties can use to increase the supply chain surplus.
