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ASSIGNMENT
DRIVE WINTER 2015
PROGRAM MBADS – (SEM 4/SEM 6) / MBAN2 / MBAFLEX – (SEM 4) /
PGDFMN – (SEM 2)
SUBJECT CODE & NAME OM0012 – SUPPLY CHAIN MANAGEMENT
SEMESTER 3
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q. 1 What are the different factors affecting transportation decisions?
Ans : There are mainly two factors which affect transportation decisions. These are :
1. Carriers
2. Customers
There are various sub-factors, which come under these two. These are discussed below :
1. Carriers:
Q.2 Write short notes on risk pooling.
Ans : Description of risk pooling:
A riskpool isone of the formsof riskmanagementmostlypracticed by insurance companies. Under
this system, insurance companies come together to form a pool, which can provide protection to
insurance companiesagainstcatastrophicriskssuchasfloods, earthquakesetc.The termisalsoused
to describe the poolingof similarrisksthatunderliesthe concept of insurance. While risk pooling is
necessary for insurance to work, not all risks can
Q.3 Read the following case study and answer the questions given the end of the case study
Best Supplier Relationship Management: Jaguar Land Rover and Gobal & Partner Jaguar Land
Rover production line 8 October 2013 | CIPS Supply Management Awards 2013
“Jaguar Land Rover (JLR) transformed its position in customer satisfaction surveys and enhanced
the quality of its products through an innovative partnership with a key supplier.

2. By re-evaluating the way it deals with quality control and suppliers, Jaguar took top spot in the
2012 JD Power Survey for customer satisfaction and Land Rover raced up the chart. In 2008, the
survey put Jaguar at nine and Land Rover at 34 for quality, described by JLR as “clearly an
unsatisfactory situation” for a premium brand and stated that “something had to change”.
Componentqualitywas identifiedas the key issue – for some suppliers the proportion of rejected
parts was as high as 65 per cent – and some finished vehicles were being put into ‘containment’
due to faulty components. This had knock-on effects including delayed customer shipments,
production line stoppages that cost £2,000 per minute and the risk that faulty parts could make
their way into completed vehicles. At the time, JLR was working with 16 different suppliers across
three factories to undertake parts rework and containment, resulting in differing quality regimes
and an inability to share data across the company. As a result, there was no single view of any
given supplier’s quality history, which made preventative action impossible. A new director of
quality was appointed who launched a review of quality across the supply chain that identified
potential improvements that could be made to the inspection of incoming components from
suppliers.The Inbound MaterialsProject was establishedand the 16 suppliers dealing with quality
control were reduced to one – Gobel & Partner (G&P) – who saw it as an opportunity to introduce
innovationsand boost investmentinits Qtrak quality managementsystem, which totals £2 million
to date. This evolved into a partnership between JLR and G&P. Both realised that prevention was
betterthan cure,and through Qtrak theycould identifythe component suppliers causing the most
problems. Those with a recurrent history of reject parts were subject to a more rigorous
inspection regime. G&P’s aim is to ensure no faulty part ever arrives at JLR production facilities
and they now work on the premises of high-risk suppliers to review quality processes. The firm is
also working at JLR’s new plant in China to ensure the right quality approach is in place from the
beginning. Over six years, the relationship between the firms has evolved from a traditional
adversarial situation,where G&Pwere treated as one of a number of commodity suppliers, to one
where the two are working to the same goal of “bringing premium quality to premium
brands”.Wolfram Leidtke, JLR board quality director, said: “JLR is a premium brand and
accordingly needsto have premium quality vehicles. Procurement has aligned with this objective.
G&P has been able to transfer their global knowledge and work with JLR to develop a new
approach to incoming material quality and the results are starting to speak for themselves.’ ”
Source: http://www.supplymanagement.com/analysis/features/2013/best-supplier-
relationshipmanagement-jaguar-land-rover-and-gobel-partner/
Question:
Illustrate the role quality playedas criteria in JLR choosingits supplierGobel & Partner. Explainthe
importance of Gobel & Partner in the supply chain(unit 6)
Ans : Importance of component quality to JLR:
Qualityisimportantbecause itmakessure productsandservicesmeetthe requiredstandard. It also
encouragesconsistency,competitive markets,reducedwaste,ensurescustomer satisfaction as well
as increased revenues.
The effects of bad quality:
Jaguar Land Rover(JLR) transformeditspositionincustomer satisfaction surveys and enhanced the
quality of its products through an innovative partnership with a key supplier.
By re-evaluating the way it deals with quality control
Q.4 “MTR Foods,the Bangalore-basedfood processing company, is planning to utilise the services
of a third party manufacturer for the first time. The contracted plant in Mathura for producing

3. vermicelli is expected to give it a push in the northern and eastern markets where it is trying to
expand its presence. The company is also planning a capacity expansion in spices.
MTR has nine plants in Bommasandra Industrial Area in Bangalore which caters to its product
categories like spices and masala, beverages, vermicelli and frozen food. The company has so far
produced its brands inhouse. ‘The plant in Mathura would help us supply to the north and eastern
parts of the country. It would help us source wheat faster and also trim freight costs by 6-7 per
cent,’ said Sanjay Sharma, chief executive officer, MTR Foods.”
Source: http://www.business-standard.com/article/companies/mtr-foods-to-
outsourcemanufacturing- 110041200084_1.html
Which according to you may then be distribution strategy used by MTR? Justify your answer (unit
8)
Ans : Identification of the strategy:
The strategyusedby MTR iscapacity expansionstrategy.Asitisclearthat the companyis planning a
capacity expansion in spices.
Explanation on the facts fitting the strategy:
In fact, adopting capacity expansion can encourage the manufacturer to reduce the amount of
productioninthe firstperiod,which indirectly alleviates the cost of holding inventory. In addition,
the manufacturer can take advantage of producing a
Q.5 Explain any four direct benefits of outsourcing with examples.
Ans : Outsourcing as an idea is not novice; it has been for over a thousand years now, the only
difference being that it's gaining lot more popularity since a decade for whatever reasons.
Outsourcing basically means asking a third-party vendor to work for you on a contractual basis.
Companies outsource primarily to cut costs. But today, it is not only about cutting cost but also
about reaping the benefits of strategic outsourcing such as accessing skilled expertise, reducing
overhead, flexible staffing, and increasing efficiency
Q.6 Describe the supplier integration approach.
Ans : Explanation of the stages of supplier integration :
The possible forms of supplier integration can be framed within the context of the "generic" new
productdevelopmentprocessshowninFigure . The new productdevelopmentprocess is a series of
interdependent, often overlapping stages during which a new product (or process or service) is
brought from the idea stage to readiness for
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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