DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: WEBSITE:

Inventory Management

Total Marks – 100
1. The section A consists of 20 marks
2. The section B consists of 60 Marks
3. The section C consists of 20 marks

Section A Marks 2 each

(a) What is ABC analysis?
(b) Give four examples of MRP.
(c) What is meant by lead time?
(d) Define standardization.
(e) What are the various inventory models?
(f) What are the functions of inventory?
(g) Explain briefly the various types of inventories.
(h) Define traffic management.
(i) What is the need for feedback inventory information system?
(j) Give two factors considered for choosing equipments for material handling.

Answer any Six questions from the followings: –
2. Explain the following terms:
Lead time, Re-order point, Stock out cost and Set-up cost.

3. What is the purpose of safety stock? How will the use of safety stock affect the EOQ? How will the safety stock affect the total annual carrying cost of the material?

4. Describe the relation between Material requirement planning and Master productions schedule. What are the advantages and limitations of MRP?

5. What are the objectives of stores management? How do you decide about the location and layout of an effective store in an organization?

6. What is the purpose of JIT? Why are flexible resources essential for JIT? Wow are suppliers affected by JIT?

Q.7 A) What is Raw Material? What are its two important factors? Describe.
B) Describe bought out components. What factors influence the decisions for bought out components?

Q.8 A) What are (KU) and (KO). Describe them in brief.
B) What are elements of ordering costs? How will you workout-ordering cost per order when you release 5000 orders a year with total ordering cost of Rs. 400000.

Q.9 A) What is Safety Stock? List out the various factors influencing the safety stock.
B) Define Service Level? How does it help in determining the Safety Stock? Explain with example.

Q.10 A) What is forecast? List out different types of forecasts.
Why is forecast needed?
B) Describe in brief dependent demands and independent Demands.

Q.11 Write Short notes on any 4 out of the followings: –
A) Inventory with Supplier
B) Inventory carrying cost.
C) FSN Classification
D) Other uses of EOQ.
E) Inventory Control through Stock – Levels.
F) Scrap / Surplus and its disposal.
G) Overhauling Spares
H) Role of computers in Inventory Management.


M/s ABC is a car manufacturing company. They have a distribution system for marketing of finished goods as follows:-
A. Finished goods are sent to Central warehouse near the factory.
B. From here, the finished goods (cars) are sent by road to seven Regional warehouses located at important centers in the country.
C. Besides above two types of warehouses, there were 27 depots from where the cars are sent to different stockiest for sale.

Due to severe market competition and restrictions on bank credit, the Top Management of M/s ABC appointed an expert committee to streamline the distribution system, The committee found followings :-

1. Central warehouse, 7 Regional warehouse and 27 Depots together have finished stock (cars) equal to 105 days all India sales.
2. The Marketing Manager has no time to check the Finished Goods Stock as he is busy with marketing functions.
3. There are several cars which are lying for more than 2 years due to availability of new better models.
4. There was lack of controlling and supervising norms for monitoring the stock positions and taking corrective actions. Indents for new cars were sent without checking of stocks.

Apart from other things, the committee advised to put the finished Goods warehousing under Materials Management deptt. and advised a finished goods stock (Cars) equal to 48 days all India sales stock as ideal stock level in all the warehouses and depots together.
M/s ABC Management has appointed you as Materials Manager to complete the above tasks. How will you proceed? The questions are:-

1. Will you review the existing numbers of warehouses and depots for reduction? If so, why?
2. How will you find slow moving and non-moving stock of cars? What methodology will you suggest to dispose off such cars?
3. What shall be your methods for monitoring and controlling of finished Goods (car) to avoid accumulation of unsold stocks in future?
4. Will you retain Central warehouse and why?
5. What will be your distribution pattern for keeping stocks in central warehouse/Regional warehouse and Depots equal to the norms of 48 days All India Sales stock level?

MARKS : 80
SUB: Production Planning and Control
N. B.: 1) Answer any Five.

1. Discuss the objectives of Production Planning and Control.

2. What do you understand by Control phase? Explain the activities under this phase.

3. What are the different demand patterns on which the sales forecasting is based? Explain.

4. Describe the Delphi method of sales forecasting.

5. What is work study? Explain excess time.

6. Explain pre-production procedures with examples.

7. What is inventory management? Explain the systems of inventory management.

8. What is E.R.P. ? Describe different uses and benefits of E.R.P.

9. What are production control techniques? Explain in detail.

SUB: SAP Supply Chain Management

Answer any four questions.
All questions carry equal marks
(4 * 20 = 80)

1. How can SAP help supply chain professionals?

2. What are the SAP solutions for Transportation and Warehousing?

3. What are the challenges in implementing SAP based Supply chain management systems in India?

4. What are the advantages of implementing SAP based supply chain management systems in India?

5. Briefly explain the importance of SCM to various stakeholders and importance of SCM for e-commerce.

6. Please explain various stages of SAP based SCM system application implementation.


Maximum Marks: 80

Please attempt any 8 questions out of the questions mentioned below.
1. What do you mean by supply chain in retail scenario? Give its importance and briefly explain the seven steps in effective collaboration?

2. Write a brief note on collaborative planning

3. Explain the usage of demand forecast response

4. What do you mean by Bull whip effect? Give the evolution & importance of precision retailing.

5. Next generation of POS & store system reduce that total cost of ownership (TCO)- Explain

6. Give a short note on any two

a) Advantage of RFID
b) Killing of the RFID tag
c) Privacy issues related with emerging Technologies

7. “Physical Distribution Decisions have to be responsive to the market conditions and hence are never static.” Explain this statement with factors influencing decisions from company’s perspective and also customer’s point of view.

8. What do you mean by Marketing Channels and what are the types of Channels? Also write factors determining length of channels with suitable examples.

9. “Importance of ‘Non-store Retailing’ is increasing in our country.” Explain this statement with its advantages and disadvantages with suitable examples.

10. Define Distribution Logistics and write its elements that give logistic importance among other functional areas of Distribution Management.

11. “A Good Supply Chain Management is important for providing Customer Value.” Discuss this statement with Value Chain Process.

12. Write short notes: (Any Two)
(a) Transportation and Material Handling
(b) Importance of Inventory Management
(c) Third Party Logistic
(d) Benchmarking the Supply Chain
(e) Wholesaling

13. The manager at a large manufacturing company is planning warehousing needs for the coming year. The manager predicts that warehousing needs will be normally distributed with a mean of 500,000 square feet and a standard deviation of 150,000 sft. He can obtain a full year lease at Rs 5 per sft per month or purchase storage space on the spot market. The spot market rates are Rs.7 per sft on the average per month. How large an annual contract should the manager sign?

14. What is the importance of cold storage warehousing in Retail sector? Please also list the importance of regional warehouses for a retailer.