DSCM01
Logistics & Supply Chain Management
Assignment – I
Assignment Code: 2016DSCM01A1 Last Date of Submission: 26th May 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A (50 marks)
1. Consider a firm redesigning its logistics network. What are the advantages of having a small number of centrally located warehouses? What are the advantages to having a larger number of warehouses closer to the end customer? (25 Marks)
2. What factors should a manger consider while deciding to go for Fixed Order Quantity Approach (Condition of Certainty); Fixed Order Quantity Approach (Condition of Uncertainty).Explain with suitable example (25 Marks)
SECTION B (50 Marks)
Case Study
KLM Catering Services is the largest provider of aircraft catering and supply at Schiphol Airport near Amsterdam. Every day the company, which employs 1200 people, prepares around 30000 meals and services 200 flights for KLM and about 35 for other operators. It is now far more than just a food preparation operation, most of its activities involve organizing all on board services, equipment food and drinks, newspapers, towels, earphones, and so on.
KLM Catering Services places considerable emphasis on working in unison with cleaning staff, baggage handlers and maintenance crews to ensure that the aircraft are prepared quickly for departure. Normally, no more than 40 minutes are allowed for all these activities, so complete preparation and a well ordered sequence of working are essential. These requirements for speed and total dependability would be difficult enough to achieve in a stable environment, but there is a wide range of uncertainties to be managed. Although KLM Catering Services is advised of the likely members of passengers for each flight ( forecasts are given 11 days, four days and 24 hours in advance), the actual minimum number of passengers for each class is only fixed six hours before take-off ( although numbers can still be increased after this, due to late sales ). The agreed menus are normally fixed six months periods, but the actual requirements for each flight depend on the destination, the type of aircraft and mix of passengers by ticket class. Finally, flight arrivals are sometimes delayed, putting pressure on everyone to reduce the turnaround times, and upsetting work schedules.
An additional problem is that, although KLM uses standardized items ( such as food trolleys, cutlery, trays and disposables), other airlines have completely different requirements. The inventory of all this equipment is moved around with the planes. Some gets damaged or lost, and it can easily accumulate at a remote airport. If an aircraft arrives without a full inventory of equipment and other items, the company is obliged to fill the gaps from its local inventory, which amounts to over 15000 different items.
Questions:
1. Why would an airline use KLM Catering services rather than organize its own onboard services?
2. What are the main supply chain issues that the case talks about for KLM to manage?
DSCM01
Logistics & Supply Chain Management
Assignment – II
Assignment Code: 2016DSCM01A2 Last Date of Submission: 26th May 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and carry equal marks.
Section-A (50 marks)
1. In the IT based supply chain management, what are the criteria be recommended to measure the performance of manufacturing organization? Explain the merits and demerits of your recommendations (25 Marks)
2. What is the need for Supply Chain Performance Measures? What are the factors that contribute to management’s need for new types of measures for managing the supply chain?
(25 Marks)
SECTION B (25 Marks)
Case Study
Passenger Interchange
In most major cities the amount of congestion on the roads is increasing. Some of this is due to commercial vehicles, but by far the majority is due to private cars. There are several ways of controlling the number of vehicles using certain areas. These include prohibition of cars in pedestrian areas, restricted entry, limits on parking, traffic calming schemes, and so on. A relatively new approach has road-user charging, where cars pay a fee to use a particular length of road, with the fee possibly changing with prevailing traffic conditions.
Generally, the most effective approach to reducing traffic congestion is to improve public transport. These services must be attractive to people who judge them by a range of factors, such as the comfort of seating, amount of crowding, handling of luggage, availability of food, toilets, safety facilities in waiting areas. Availability of escalators, lifts, and so on. However, the dominant considerations are cost, time and reliability.
Buses are often the most flexible form of public transport, with the time for a journey consisting of four parts:
• joining time, which is the time needed to get to a bus stop
• waiting time, until the bus arrives
• journey time, to acnrallg do the travelling
• leaving time, to get from the bus to the final destination.
Transport policies can reduce these times by a combination of frequent services, well-planned routes, and bus priority schemes. Then convenient journeys and subsidised travel make buses an attractive alternative.
One problem, however, is that people have to change buses, or transfer between buses and other types of transport, including cars, planes, trains, ferries and trams. Then there are additional times for moving between one type of transport and the next, and waiting for the next part of the service. These can be minimised by an integrated transport system with frequent, connecting services at 'passenger interchanges'.
Passenger interchanges seem a good idea, but they are not universally popular. Most people prefer a straight-through journey between two points, even if this is less frequent than an integrated service with interchanges. The reason is probably because there are more opportunities for things to go wrong, and experiences suggests that even starting a journey does not guarantee that it will successfully finish.
In practice, most major cities such as London and Paris have successful interchanges, and they are spreading into smaller towns, such as Montpellier in France. For the ten years up to 2001, the population of Montpellier grew by more than 8.4 per cent, and it moved from being the 22nd largest town in France to the eighth largest. It has good transport links with the porti of Sete, an airport, inland waterways, main road networks and a fast rail link to Paris. In 2001, public transport was enhanced with a 15 kilometer tramline connecting major sites in the town centre with other transport links. At the same time, buses were rerouted to connect to the tram, cycling was encouraged for short distances, park-and-ride services were improved, and journeys were generally made easier, As a result, there has been an increase in use of public transport, a reduction in the number of cars in the town centre, and improved air quality. When the tram opened in 2000, a third of the population tried it in the first weekend, and it carried a million people within seven weeks of opening. In 2005, a second tramline will add 19 kilometers to the routes.
Questions:
(a) Are the problems of moving people significantly different from the problems of moving goods or Services?
(b) What are the benefits of public transport over private transport? Should public transport be encouraged and, if so, how?
(c) What are the benefits of integrated public transport systems ?
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