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Saturday 23 March 2019

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NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Advanced Supply Chain Management
Internal Assignment Applicable for April 2019 Examination
Assignment Marks: 30
1. As Head of Supply Chain you are given the task of distribution network design. Explain
the process of Distribution Network Design you will follow and the influencing factors
you need to consider. Give examples wherever possible.
(10 Marks)
2. As a business strategy, your organization has chosen to outsource some work so that
they can continue to focus on the core business processes. Small tasks which can be
easily passed on to outsourcing companies are identified. Explain the supplier selection
and procurement process that needs to be followed for successful implementation.
(10 Marks)
3. A wholesaler buys shoes from NaviCo a shoe manufacturing company at Rs.500 per
pair. The wholesaler carries an average inventory of Rs 60,00000. The purchase
department expenses are Rs 408000 per annum and during this period around 3400
orders are released for procuring the shoes. It is also estimated (as % of inventory
value) the ware-housing costs (building rent, depreciation, operating cost) to be 6%,
Material handling costs (equipment, lease or depreciation, power) 3%, Labor cost 3% ,
Investment costs (borrowing costs, taxes, and insurance on inventory) 11%, Pilferage,
scrap, and obsolescence 3%. The annual demand for NaviCo shoes are 50,000 pairs.
a. What should be the ordering quantity the wholesaler should place to keep his total
inventory costs minimum? (5 Marks)
b. Explain the types of inventories maintained by an organization? (5 Marks)

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