University of Management & Technology

DepartmentofAssessmentandEvaluation
(SubjectiveType:MidTermExam)

SectionG

CourseTitle:SupplyChainManagement
Resource Person: Ijaz Yusuf

Program:MBA(E)Fall2010
TotalMarks:12
Time: 90:00 min

ParticipantName:........................

ID:No

AttemptAllQuestions.

ShortQuestions
1.

(12)

Draw ONE neat, labeled and clear distribution network for cross-docked and conventional
distributor storage with customer pick-up.
(Point 2)

2.

Describe the typical elements of order processing. (Point 2)

3.

While developing a new product what the eight risk factors are as discussed in Intel
analyses?
(Point 1)

4.

Explain derivers of Supply Chain Performance? (Point 3)

5.

A clothing item is purchased for a seasonal sale. It costs $ 35, but it has a Profit of $ 17
what is the sale price? After the season is over, the loss is $ 3. The estimated quantities to
be sold are: what items are appropriate for single ordering?
(Point 1)

6. An item has the following cost characteristics. Item values are CR=$10/unit and CW=$5/unit.
Carrying cost is I = 20%/year. Ordering costs are SR=$40/order and SW=$75/order. Lead times
are LTR=0.25 month and LTW=0.5 months. In-stock probability for retailers and warehouses is
90%. And Z = 1.28 Monthly demand statistics are:
Monthly avg., Std. dev.,
units
units
Retailer 1
250
16.8
Retailer 2

125

15.6

Retailer 3

400

18.0

Combined

775

32.4

Based on reorder point inventory control, calculate warehouse echelon order quantity and
average warehouse inventory
(Point 3)
Formula EOQ= sqrt (2 * S * D/ I * C ), ROP = d * LT + z *std dev. * sqrt (LT) and
AIL = EOQ/2 + z * std dev. * sqrt (LT)