Case Study - Logistics Management
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Send your semester & Specialization name to our mail id
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AEREN FOUNDATION’S
Maharashtra Govt. Reg. No.: F-
11724
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
SUBJECT :Logistics Management
Total Marks: 80
Case 1
Marks)
(10
Q. 1. If you are appointed as the logistics consultant, then advise M/s
BPL in respect of ‘
(a) How to achieve economy in transportation, by maintaining almost
same service level?
(b) Demand Forecasting technique to take care of seasonality, reduction
in inventory.
(c) Information technology to substitute maintenance of high inventory
without affecting customerservice level.
(d) Connectivity between factory and depots (networking Diagram)
Answer: M/s. Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints
for households, commercial premises and industrial application. The main
problem which has been clearly been outlined is the fact that they have
overstretched their distribution way beyond their supplying means. One
manufacturing facility providing 25 distribution centres!!!! - Too much. This has
also pumped up their transportation costs. The best solution i think is to set up 23 more manufacturing facilities in areas i.e Pune facility for the western stores, 1
for northern stores, 1 for southern and the last for eastern. These facilities will
reduce the transportation costs, set in the economies of scale thus reducing
production costs and also help
Case 2
(10 Marks)
In case you are appointed as logistic consultant to solve the problems,
you are required to put forwardyour suggestions for:
(a) Proper transportation policy to ensure minimum transportation loss
of vegetables and poultry productsand reduction in the packaging
costs.
(b) Demand Forecasting techniques to take care of the seasonality,
reduction in inventory and shortageand other related problems.
(c) Suggestion for improved Purchase and Distribution policy.
(d) Is it advisable to have company owned dedicated transport fleet?
Answer: ABCL Ltd. Is leading/ Fast Food Processing Company operating from
Thane. It is involved in the fast food business since last 10 years and has tie up
with a foreign firm operating in the same field. It handles both Vegetable as well
Non—Vegetable products for which it arranges the vegetables and chickens from
the local vegetable vendors and poultry farms as well as from far off places like
Nasik, Pune and Aurangabad. It has very good market in Mumbai, Pune and
surrounding cities.
(a) Transportation and storage problems are identified as
Case 3
(10 Marks)
Q. (1) Evaluate the alternative solution that could be considered by Mr.
Mohan.
Answer:Mumbai Flour mills, provide high-quality bakery flours to commercial
bakers as well as to the consumer market. The commercial buyers have
consistent demand and brand-loyalty, whereas consumers have minimal brandloyalty but also generally prefer known names over store brands. Demand is
seasonal for the flours with the annual break occurring just before Diwali and
slacking off dramatically during January and February. To offset these both,
Mumbai Flour Mills and its major supermarket chain-accounts carry out special
deals and sales promotions.
The Production planning Dept. of the company located at Akola, Maharashtra,
has the responsibility for controlling the inventory levels at the plant warehouse
at
Q. (2) What additional solution do you propose?
Answer:Reduction: Whereas DON-infected wheat kernels can be identified and
removed in the wheat cleaning process, other forms of microbial contamination
cannot be seen. Several treatments of wheat during the cleaning process are
being investigated and researched to determine their effectiveness in lowering
the microbial load of flour.
One processing method that has proven effective is aggressive scouring or
abrasion of the wheat to remove the outer layers of bran prior to milling.
Q. (3) Examine the transportation system and its drawbacks?
Answer:Recently the company has experienced two major stock out for its
consumer-size 5 Kg. sacks of refined quality white flour. One of these was due to
problems in milling operations, the other occurred when marketing initiated a
“buy one, get one free” coupon promotion. Since these events, the planning has
become overly cautious and errs on the side having excess inventories at the
distribution centres. Additionally, two other events have affected Distribution
Centre’s throughput:
(1) implementation of direct factory supply for replenishing the five largest super
market chains, and (2) a price increase making Mumbai Flour more expensive
Case 4
(10 Marks)
(i) Examine the possibility of alternatives in transportation of the
inbound and outbound materials?
(ii) How to reduce the cost of inbound and outbound logistics functions?
(iii) What could be the major problem in exploiting the inbound and
outbound logistic functions?
(iv) Is it advisable to have dedicated transport system to operate
packaged materials mainly for thecompany?
(v) What arrangements have to be made to ensure the service quality
for customers?
Answer:M/s Modern Garments is the manufacturers of Ladies and Gents
garments like shirts, tops and undergarments etc. The technology is advanced
and there are several players with access to such latest technologies. The supply
chains for M/s Modern Garments includes significant purchases of raw material,
stitching, packaging and supply to customers. The logistics functions are the key
competitive elements in the market, M/s Modern
(ii) How to reduce the cost of inbound and outbound logistics functions?
A Collaborative Resource
Because of their unwieldy size, and lengthy preparation and printing time, many
routing guides are already outdated by the time they are distributed. In an
attempt to stay current, some shippers issue supplements and revised pages
throughout the life of the guide.
As cumbersome and impractical as this process is for the issuers, it is at least as
painful for the recipient. Neither buyer nor seller can deploy changes quickly, or
even place the changes into a workable process. If getting the information out on
time is impossible, it is equally impossible to take advantage of significant
transportation opportunities that are available throughout the shipment's entire
life.
(iii) What could be the major problem in exploiting the inbound and
outbound logistic functions?
Inbound logistics refers to the transport, storage and delivery of goods coming
into a business. Outbound logistics refers to the same for
(iv) Is it advisable to have dedicated transport system to operate
packaged materials mainly for thecompany?
Now in the market only garments with good delivery quality are acceptable. All
the competitors have equally good quality product in the market. Presently the
area of logistics distribution, customer service and satisfaction are the area of
prime concern in order to have extra value addition to the product. The product
defects due to stitching, cutting and transportation are now under increasing
scrutiny. From the cost control point
(v) What arrangements have to be made to ensure the service quality
for customers?
Due to product variations, the order fulfillment and its processing is of
considerable importance. The traditional information system has become
inadequate. There are over 500 retail outlets through which the finished products
are distributed with the help of more than 50 transporters. Lead- time variability
is creating problem of buffer stocks• with distributors. The transit time
fluctuations are due to the breakdown of trucks, improper documentation and
unfair practice of over charging of the vehicles etc. Such variability has to be
reduced.
Case 5
(10 Marks)
Q. 1. What are the company’s present logistical problems?
Answer:‘The company has four state-of-an-art manufacturing plants accredited
with ISO certification & backed by strong technical support from their foreign
collaborators. The company is also having a well established all India distribution
network consisting of numbers of dealers. The products flow from the
manufacturing plants to the warehouses, managed & maintained by the
company, located at different places across the country. The dealers draw their
requirements from these warehouses for onward delivery to their
Q. 2. Give your recommendations for improving the company’s logistical
performance?
Answer:Fierce competition in today’s market has forced business enterprises to
invest in and focus on supply chains. The growth in telecommunication and
transportation technologies has led to further growth of the supply chain. The
supply chain, also known as the logistics network, consists of suppliers,
manufacturing centers, warehouses, distribution centers and retail outlets, as
well as raw materials, work-in-process inventory and finished products that flow
between the facilities.
The logistics management takes into consideration every facility that has an
impact on cost. It plays an important role in making the product
Case 6
(10 Marks)
Q. 1. Identify the main logistical problems of the Company
Answer:After the liberalisation of the Indian economy in 1991, the entire
business scenario- particularly in consumer durable industry - has undergone a
drastic change. The company started experiencing the pressure of competition
from local as well as international players. It was observed that during the last 5
years sales growth has come down and the company is losing its market share
slowly& steadily. The external agency that conducted a study for the Company
came out with their following observations.
1. At all levels in the company employee orientation is towards production rather
than marketing
2 The cost of product distribution is the highest compared to the Industry
standards
3. The warehouse space was urderutilized — the utilization factor varies between
95 % during the peak season and drop to 40% during the slack season.
Q. 2. To offer better customer service level and reduce the operating
cost, how will you go aboutredesigning the distribution network?
Answer:1967 M/s. Vijay Enterprise ventured into trading of electronic consumer
durable targeting the large potential market in the year 1970, the company
managed to get the exclusive dealership of a leading electronic manufacturing
company in India to market their products in the Western Indiá. Later on, the
company with a view to create their own brand in the market established a plant
in Maharashtra & started their own manufacturing activities. With a
manufacturing capacity under their belt, the company increased their turnover
Case 7
(10 Marks)
Q. 1. What is the main problem in this case? What are your suggestions
to the company on inventorymanagement?
Answer:M/s. Decorative Laminates Corporation (DLC) is a supplier of decorative
sheets for wooden furniture makers in domestic as well as commercial markets.
In spite of competition in this field their sales volumes shown growth during last
2 to 3 years. The last year was recorded 15% more sales compared to previous
year. Even though the sales volume are increasing the profit margin is getting
reduced day by day due to future competition.
In one of the monthly management review
Q. 2. What type of logistical cost approach you would suggest to the
company?
Answer:Intrafunctional logistics focuses on the coordination of the inbound
logistics and material management as well as cost efficient distribution while
supporting the customer service’s goals. All of these activities are coordinated in
many different ways and often logistics managers use the total cost approach to
find the most cost effective solutions.
The total cost approach is generated the idea that all activities that are found
within the moving and storing of goods and products need to be thought of as a
whole, their total cost. It uses cost trade-offs, when logistics expenses may
increase in one area
Case 8
(10 Marks)
Q. 1. What are the main problems in the logistical network of M/s.
Compu-Tech?
Answer:M/s. Compu-Tech is on the reputed Indian companies producing various
types of computer printers. Their production plant is situated at Noida in
northern India and the products are distributed through distribution centers
located in every region. The company introduced LS popular line of Desk Jet
printers first time in India in 2005. Immediately on the launch of this products.
The solo more than one lacs units during that year. But the
Q. 2. What solutions would you propose of overcome these problems?
Answer:To see lean perfected – study the NASCAR pit. In a matter of seconds,
the pit crew has changed tires, wiped down the windshield, filled up fuel, and
given the driver a drink of water. Everything is in the right place at the right time.
If only every distribution center would run that smoothly. What’s clear is that
mastering inventory levels is central to the equation of eliminating waste, but
inventory management is becoming a vexing problem for some organizations –
compounded by multi-channel distribution, inadequate demand forecasting, and
a lack of communication among appropriate parties.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
:
“ [email protected] ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
Send your semester & Specialization name to our mail id
:
“ [email protected] ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
AEREN FOUNDATION’S
Maharashtra Govt. Reg. No.: F-
11724
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
SUBJECT :Logistics Management
Total Marks: 80
Case 1
Marks)
(10
Q. 1. If you are appointed as the logistics consultant, then advise M/s
BPL in respect of ‘
(a) How to achieve economy in transportation, by maintaining almost
same service level?
(b) Demand Forecasting technique to take care of seasonality, reduction
in inventory.
(c) Information technology to substitute maintenance of high inventory
without affecting customerservice level.
(d) Connectivity between factory and depots (networking Diagram)
Answer: M/s. Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints
for households, commercial premises and industrial application. The main
problem which has been clearly been outlined is the fact that they have
overstretched their distribution way beyond their supplying means. One
manufacturing facility providing 25 distribution centres!!!! - Too much. This has
also pumped up their transportation costs. The best solution i think is to set up 23 more manufacturing facilities in areas i.e Pune facility for the western stores, 1
for northern stores, 1 for southern and the last for eastern. These facilities will
reduce the transportation costs, set in the economies of scale thus reducing
production costs and also help
Case 2
(10 Marks)
In case you are appointed as logistic consultant to solve the problems,
you are required to put forwardyour suggestions for:
(a) Proper transportation policy to ensure minimum transportation loss
of vegetables and poultry productsand reduction in the packaging
costs.
(b) Demand Forecasting techniques to take care of the seasonality,
reduction in inventory and shortageand other related problems.
(c) Suggestion for improved Purchase and Distribution policy.
(d) Is it advisable to have company owned dedicated transport fleet?
Answer: ABCL Ltd. Is leading/ Fast Food Processing Company operating from
Thane. It is involved in the fast food business since last 10 years and has tie up
with a foreign firm operating in the same field. It handles both Vegetable as well
Non—Vegetable products for which it arranges the vegetables and chickens from
the local vegetable vendors and poultry farms as well as from far off places like
Nasik, Pune and Aurangabad. It has very good market in Mumbai, Pune and
surrounding cities.
(a) Transportation and storage problems are identified as
Case 3
(10 Marks)
Q. (1) Evaluate the alternative solution that could be considered by Mr.
Mohan.
Answer:Mumbai Flour mills, provide high-quality bakery flours to commercial
bakers as well as to the consumer market. The commercial buyers have
consistent demand and brand-loyalty, whereas consumers have minimal brandloyalty but also generally prefer known names over store brands. Demand is
seasonal for the flours with the annual break occurring just before Diwali and
slacking off dramatically during January and February. To offset these both,
Mumbai Flour Mills and its major supermarket chain-accounts carry out special
deals and sales promotions.
The Production planning Dept. of the company located at Akola, Maharashtra,
has the responsibility for controlling the inventory levels at the plant warehouse
at
Q. (2) What additional solution do you propose?
Answer:Reduction: Whereas DON-infected wheat kernels can be identified and
removed in the wheat cleaning process, other forms of microbial contamination
cannot be seen. Several treatments of wheat during the cleaning process are
being investigated and researched to determine their effectiveness in lowering
the microbial load of flour.
One processing method that has proven effective is aggressive scouring or
abrasion of the wheat to remove the outer layers of bran prior to milling.
Q. (3) Examine the transportation system and its drawbacks?
Answer:Recently the company has experienced two major stock out for its
consumer-size 5 Kg. sacks of refined quality white flour. One of these was due to
problems in milling operations, the other occurred when marketing initiated a
“buy one, get one free” coupon promotion. Since these events, the planning has
become overly cautious and errs on the side having excess inventories at the
distribution centres. Additionally, two other events have affected Distribution
Centre’s throughput:
(1) implementation of direct factory supply for replenishing the five largest super
market chains, and (2) a price increase making Mumbai Flour more expensive
Case 4
(10 Marks)
(i) Examine the possibility of alternatives in transportation of the
inbound and outbound materials?
(ii) How to reduce the cost of inbound and outbound logistics functions?
(iii) What could be the major problem in exploiting the inbound and
outbound logistic functions?
(iv) Is it advisable to have dedicated transport system to operate
packaged materials mainly for thecompany?
(v) What arrangements have to be made to ensure the service quality
for customers?
Answer:M/s Modern Garments is the manufacturers of Ladies and Gents
garments like shirts, tops and undergarments etc. The technology is advanced
and there are several players with access to such latest technologies. The supply
chains for M/s Modern Garments includes significant purchases of raw material,
stitching, packaging and supply to customers. The logistics functions are the key
competitive elements in the market, M/s Modern
(ii) How to reduce the cost of inbound and outbound logistics functions?
A Collaborative Resource
Because of their unwieldy size, and lengthy preparation and printing time, many
routing guides are already outdated by the time they are distributed. In an
attempt to stay current, some shippers issue supplements and revised pages
throughout the life of the guide.
As cumbersome and impractical as this process is for the issuers, it is at least as
painful for the recipient. Neither buyer nor seller can deploy changes quickly, or
even place the changes into a workable process. If getting the information out on
time is impossible, it is equally impossible to take advantage of significant
transportation opportunities that are available throughout the shipment's entire
life.
(iii) What could be the major problem in exploiting the inbound and
outbound logistic functions?
Inbound logistics refers to the transport, storage and delivery of goods coming
into a business. Outbound logistics refers to the same for
(iv) Is it advisable to have dedicated transport system to operate
packaged materials mainly for thecompany?
Now in the market only garments with good delivery quality are acceptable. All
the competitors have equally good quality product in the market. Presently the
area of logistics distribution, customer service and satisfaction are the area of
prime concern in order to have extra value addition to the product. The product
defects due to stitching, cutting and transportation are now under increasing
scrutiny. From the cost control point
(v) What arrangements have to be made to ensure the service quality
for customers?
Due to product variations, the order fulfillment and its processing is of
considerable importance. The traditional information system has become
inadequate. There are over 500 retail outlets through which the finished products
are distributed with the help of more than 50 transporters. Lead- time variability
is creating problem of buffer stocks• with distributors. The transit time
fluctuations are due to the breakdown of trucks, improper documentation and
unfair practice of over charging of the vehicles etc. Such variability has to be
reduced.
Case 5
(10 Marks)
Q. 1. What are the company’s present logistical problems?
Answer:‘The company has four state-of-an-art manufacturing plants accredited
with ISO certification & backed by strong technical support from their foreign
collaborators. The company is also having a well established all India distribution
network consisting of numbers of dealers. The products flow from the
manufacturing plants to the warehouses, managed & maintained by the
company, located at different places across the country. The dealers draw their
requirements from these warehouses for onward delivery to their
Q. 2. Give your recommendations for improving the company’s logistical
performance?
Answer:Fierce competition in today’s market has forced business enterprises to
invest in and focus on supply chains. The growth in telecommunication and
transportation technologies has led to further growth of the supply chain. The
supply chain, also known as the logistics network, consists of suppliers,
manufacturing centers, warehouses, distribution centers and retail outlets, as
well as raw materials, work-in-process inventory and finished products that flow
between the facilities.
The logistics management takes into consideration every facility that has an
impact on cost. It plays an important role in making the product
Case 6
(10 Marks)
Q. 1. Identify the main logistical problems of the Company
Answer:After the liberalisation of the Indian economy in 1991, the entire
business scenario- particularly in consumer durable industry - has undergone a
drastic change. The company started experiencing the pressure of competition
from local as well as international players. It was observed that during the last 5
years sales growth has come down and the company is losing its market share
slowly& steadily. The external agency that conducted a study for the Company
came out with their following observations.
1. At all levels in the company employee orientation is towards production rather
than marketing
2 The cost of product distribution is the highest compared to the Industry
standards
3. The warehouse space was urderutilized — the utilization factor varies between
95 % during the peak season and drop to 40% during the slack season.
Q. 2. To offer better customer service level and reduce the operating
cost, how will you go aboutredesigning the distribution network?
Answer:1967 M/s. Vijay Enterprise ventured into trading of electronic consumer
durable targeting the large potential market in the year 1970, the company
managed to get the exclusive dealership of a leading electronic manufacturing
company in India to market their products in the Western Indiá. Later on, the
company with a view to create their own brand in the market established a plant
in Maharashtra & started their own manufacturing activities. With a
manufacturing capacity under their belt, the company increased their turnover
Case 7
(10 Marks)
Q. 1. What is the main problem in this case? What are your suggestions
to the company on inventorymanagement?
Answer:M/s. Decorative Laminates Corporation (DLC) is a supplier of decorative
sheets for wooden furniture makers in domestic as well as commercial markets.
In spite of competition in this field their sales volumes shown growth during last
2 to 3 years. The last year was recorded 15% more sales compared to previous
year. Even though the sales volume are increasing the profit margin is getting
reduced day by day due to future competition.
In one of the monthly management review
Q. 2. What type of logistical cost approach you would suggest to the
company?
Answer:Intrafunctional logistics focuses on the coordination of the inbound
logistics and material management as well as cost efficient distribution while
supporting the customer service’s goals. All of these activities are coordinated in
many different ways and often logistics managers use the total cost approach to
find the most cost effective solutions.
The total cost approach is generated the idea that all activities that are found
within the moving and storing of goods and products need to be thought of as a
whole, their total cost. It uses cost trade-offs, when logistics expenses may
increase in one area
Case 8
(10 Marks)
Q. 1. What are the main problems in the logistical network of M/s.
Compu-Tech?
Answer:M/s. Compu-Tech is on the reputed Indian companies producing various
types of computer printers. Their production plant is situated at Noida in
northern India and the products are distributed through distribution centers
located in every region. The company introduced LS popular line of Desk Jet
printers first time in India in 2005. Immediately on the launch of this products.
The solo more than one lacs units during that year. But the
Q. 2. What solutions would you propose of overcome these problems?
Answer:To see lean perfected – study the NASCAR pit. In a matter of seconds,
the pit crew has changed tires, wiped down the windshield, filled up fuel, and
given the driver a drink of water. Everything is in the right place at the right time.
If only every distribution center would run that smoothly. What’s clear is that
mastering inventory levels is central to the equation of eliminating waste, but
inventory management is becoming a vexing problem for some organizations –
compounded by multi-channel distribution, inadequate demand forecasting, and
a lack of communication among appropriate parties.
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
:
“ [email protected] ”
or
Call us at : 08263069601
(Prefer mailing. Call in emergency )
