MMS III- Supply Chain Management
Internal Retest
Marks
A) Match the suitable answer: 20
Column A Column B
1. Maritime Logistics a. Basic activities of forwarding logistics
like pick and pack, distribution and
warehousing.
2. Customer developer 3 PL b. Single type of commodity carried.
3. Information Flow in SCM c. Credit Terms, payment schedules and
discount terms
4. Standard 3PL d. Transport of liquids and gases
5. Unit Train e. Cost
6. Air transport f. Transmitting orders and updating the
status of delivery
7. Internal performance measure g. 3PL integrates with customer firm and is
highest level of 3PL
8. Pipeline Transport h. Customer perception measurement
9. External performance measure i. Highly expensive mode of transport
10. Financial flow in SCM j. Pirate attacks is the key fear
B) Case Study: Nukids is a toy manufacturing Company which is in the business for the last two
decades. The manufacturing unit is located in Mumbai, while its sales and marketing units are
spread over a large geographical area, especially in a major cities across in the country. Over
the years, a number of competitors have sprung up in the field. Far from the child’s play, the
company found that the toys sector is a tough business. Some of the problems faced by it, are :
There is a massive sale during the festival seasons. If the company’s product is delayed, the
valuable market is missed.
“ Fashion” or “Cult” status products influence the market. Any wrong decision in this
matter means loss of sale and build-up of the unwanted inventory.
There are high marketing and promotional costs. If these programs go and miss out, the
sales drop massively.
Any misjudge of the market can also mean closing down of the company.
The company has problems regarding stock holding at its distribution centres. This is
mainly due to the wrong inputs from feedbacks and improper surveys.
The company relies mainly on the hired fleet of road transport. Their services are not up to
the mark, in terms of delivery schedules and safety of the goods from pilferage and theft,
and mishandling of the product .
Marketing strategies are far from adequate. They are not effective enough to counter the
strategies of the competitors.
You are called upon by the manufacturer of the Nukids to head their logistics operations. You
are required to study and guide the company regarding the following matters:
a) The warehousing at distribution centres and large retailers to cut down inventory costs plus 10
other suggestions in order to reduce the inventory carrying costs.
b) Advantages of outsourcing in terms of preparing girls’ and boys’ toys , toys in local languages
5
Toys for the different age groups, packaging and effecting savings on damages/ transport,
responding fast to customer complaints etc.
c) How to cut down cost on advertisement campaigns by alternative forms of spreading
5 awareness?
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