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1. Dear students get fully solved assignments
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AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724
Subject: Trade Documentation & Logistics
Total Marks: 80
Case 1
(10 Marks)
If you are appointed as the logistics consultant, then advise M/s BPL in respect of ‘
Question.(a) How to achieve economy in transportation, by maintaining almost same service
level?
Answer:M/s. Britecolor Paints Ltd. (BPL) is a manufacturer of decorative paints for households,
commercial premises and industrial application.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-
SCHOOL

2. M/s. BPL had embarked on a policy of satisfying every possible customer in respect of shades,
delivery and durability. Thus it went ahead and created 25 depots, one almost in every major city.
The manufacturing base however was maintained at Pune. The factory received information in
connectionwithstocksfromdepotsonce ina weekandthere wasno inter-communicationbetween
depots. Since they were in a competitive market, price was predetermined, i.e. the manufacturer
had no liberty to price the product as per one's own
Question.(b) Demand Forecasting technique to take care of seasonality, reduction in inventory.
Answer:While on one hand M/s BPL had a population of very satisfied customers, they had almost
50%of their total domestic sales lying as finish goods inventory at various depots, on the other
hand.Industrial paints, though not very customised, the respective industrial customer was quite
satisfied. Consequently, the inventory of finished goods was very low in this segment. But at the
same time, realisation was also lower due to stiff competition from other industrial paint
manufacturers than the domestic segment.
To handle the increasing variety and complexity of managerial forecasting problems, many
forecasting techniques have been developed in recent years
Question.(c) Information technology to substitute maintenance of high inventory without
affecting customerservice level.
Answer:Nevertheless, the economic runs of industrial paints were always assured due to high off-
take by the industrial customers.The following information is the minimum information required:
Maintenance Requirements from an Inventory System
On-line orreal-time partsinformationisnecessarytoplanmaintenance activities. The planner must
know when selecting parts for a job that they are in stock, out of stock, in transit, etc. The planner
must have current information.
If the information the planner has is current, he will
Question.(d) Connectivity between factory and depots (networking Diagram)
Answer:The objective of the manufacturer was to increase the realization taking into account,
economicruns,inventory,seasonalityandindividual choicesof domestic/industrial customer.I think
the mainproblemliesisintheirdistribution and manufacturing locations. They have 25 depots and
only one manufacturing unit and that to in pune. They should have chosen bhiwandibecasue it

3. connects all national highways and because of that communication and availability of the product
becomes more easy.
From the pointof viewof Customer,there isnodifference,because he canclaimExcise Creditto the
extent he has received in your Excise Invoice (factory or Depot). From your point of view, as far as
Excise Calculation is concerned, there is one
Case 2
(10 Marks)
In case you are appointed as logistic consultant to solve the problems, you are required to put
forwardyour suggestions for:
Question.(a) Proper transportation policy to ensure minimum transportation loss of vegetables
and poultry products and reduction in the packaging costs.
Answer:ABCLLtd. isleading/FastFood Processing Company operating from Thane. It is involved in
the fast food business since last 10 years and has tie up with a foreign firm operating in the same
field. It handles both Vegetable as well Non—Vegetable products for which it arranges the
vegetablesandchickens from the local vegetable vendors and poultry farms as well as from far off
places like Nasik, Pune and Aurangabad.
It has verygoodmarketin Mumbai,Pune andsurroundingcities. The products are sold in the brand
name of ‘Nasta’ which is very popular brand amongst the
Question.(b) Demand Forecasting techniques to take care of the seasonality, reduction in
inventory and shortageand other related problems.
Answer:ABCLLtd is a leadingFastFoodProcessingCompanyoperating from Thane. It is involved in
the fast foodbusiness since last 10 years and has a tie up with a foreign firm operating in the same
field. Ithandlesbothvegetable aswellasnon-vegetable productsforwhichitarrangesthe required
vegetables and chickens from local vegetable vendors and poultry farms as well as from far off
places like Nasik, Pune and Aurangabad. It has very good markets in Mumbai, Pune and the

4. surrounding cities. The products are sold in the brand name of Nasta which is very popular brand
among the young collegians and office goers. It has its most modern kitchen at New Mumbai to
cater to the needs for fresh Nasta. Vegetables and chicken items are transported from the
procurement centres of Nasik, Pune, Aurangabad
Question.(c) Suggestion for improved Purchase and Distribution policy.
Answer:The teamof seniorexecutiveshas recommended your name as a Logistics Consultant. You
are required to put forward your suggestions for the following:
a) Proper transportation policy to ensure minimum transportation loss of vegetables of
vegetables and poultry products and reduction in the packaging costs. Advice on the
company owning its own fleet of transport.
b) Demand forecasting techniques to take care of
Question. (d) Is it advisable to have company owned dedicated transport fleet?
Answer:Although many companies use dedicated truck fleets to transport their goods, few give
adequate thought to which type of configuration they choose for those fleets. But they should
consider the options carefully, because this decision can have a significant impact on cost and
service.
The term "dedicatedfleet," also known as "dedicated contract carriage," refers to tractors, trailers,
drivers, and other resources exclusively devoted to serving a set of facilities or lanes in a
transportation network. They usually are owned or
Case 3
(10 Marks)
Mumbai Flour Mills provide high quality bakery flours to commercial bakers as well as to the
consumermarket. The commercial buyershave consistent demand and brand loyalty, whereas the
consumers have minimal brand loyalty. They, instead, generally prefer known names over store
brands. Demand is seasonal for the flour with the annual break occurring just before Diwali. It

5. slacksoff drasticallyduringJanuary and February. To offset both these phenomena, Mumbai Flour
Mills and its major super market chain accounts carry out special deals and sales promotions.
The ProductionPlanningDepartment of the company which is located at Akola in Maharashtra, has
the responsibilityof controllingthe inventory level at the plant warehouse at Nagpur as well as the
three distribution centres located at Nasik in Maharashtra, Bhopal in Madhya Pradesh and
Hyderabad in Andhra Pradesh.
Planning has been routinely based on past experience and history. No formal forecasting is
performed by the company. Distribution centres get their requirements by rail from Nagpur. The
leadtime of replenishmentfromNagpurtodistributioncentresis7 days. The replenishment rate is
48 to 54 palletsperwagondependinguponthe type of wagonused. Incase there is any emergency
demand, then 18 pallets can be made available by truck with 3 days transit time.
Recently, the company has experienced two major stock-outs for its consumer size 5 kg sacks of
refinedqualitywhiteflour. One of these wasproblemsinthe millingoperations, the other occurred
when the marketing department initiated ‘buy-one-get-one-free’ coupon promotion. Ever since
these eventstookplace,the planninghasbecome excessively couscous and hence, errs on the side
having excessive inventories at the distribution centres. Additionally, two other events have
affected distribution centre’s throughputs
(1) implementationof directfactorysupplyforreplenishingthe five largest super market chains and
(2) a price increasing making the Mumbai Flour Mills more expensive than its national brand
competitors such as Eillsburry, or Tata maida.
Out of the 1,500 pallets in Hyderabad distribution centre, the Mumbai Flour Mills shows only 396
palletsforopenorders. Thishasled the company to use outside overflow storage where there are
another 480 pallets. Flour is easily damaged. Hence, the company prefers to minimize handling.
Overstockingatthe distribution centres alone costs Rs. 1.85 per pallet for outside storage to which
must be added Rs. 4.25 per pallet extra handling charges and Rs. 225 oer truck load for
transportation. Similar scenarios are seen at other distribution centres as well.
Mr. Mohan, the distribution manager, is contemplating various approaches to solve the inventory
problem. Itisclear that the productmust be inplace at the time a consumeris making a decision to
buythe product At the same time,the companycannot tolerate the overstocking situation and the
stressthat itis putting on facilities and cash flow. Mr. Mohan’s first thought is “better information
system”, which will provide timely and accurate information throughout the organization.
Question.(1) Evaluate the alternative solution that could be considered by Mr. Mohan.
Answer:
Question.(2) What additional solution do you propose?
Answer:
Question.(3) Examine the transportation system and its drawbacks?
Answer:

6. Case 4
(10 Marks)
Question.(i) Examine the possibilityofalternatives in transportation of the inbound and outbound
materials?
Answer:M/s Modern Garments is the manufacturer of ladies and gents garments, such as tops,
shirts, undergarments, etc. Their manufacturing technology is advanced and, at the same time,
there are several players who have access to such latest technologies. The supply chain for M/s
ModernGarments includessignificantpurchases of raw materials, stitching of garments, packaging
of finished products and supply of goods to its customers.
The logistics functions are the key competitive elements in the market. M/s Modern Garments is
consideringtotake overthe control overitsinboundandoutboundlogisticsfunctions. These have a
directbearinguponthe inventories,reductioninthe lossesdue totransitdelaysandimprovementin
transittime andservice reliability. However, the company has to look into the cost implications of
such changes.
Question.(ii) How to reduce the cost of inbound and outbound logistics functions?
Answer:M/s Modern Garments have been the leader in the readymade shirts market in India for a
number of years. After liberalization, they entered into a joint venture with a French company to
expanditsbusinessinthe areaof trousersandT-shirts. Despite the new joint venture, M/s Modern
Garments still continues to manufacture its shirts at Thane near Mumbai and has started a new
state-of-art garment manufacturing plant at Pune in Maharashtra, to compete with other market
players. The companyhas plannedto undertake the distributionof garmentsmade andpackedinits
plants at Navi Mumbai and Kalyan so as to retain the
Question.(iii) What could be the major problem in exploiting the inbound and outbound logistic
functions?
Answer:After liberalization, the market has grown more matured and the expectations of the
customers towards the features of the product have increased and also the technology and the
designhasimprovedconsiderably. Now,inthe marketonlythe garmentswithgooddelivery quality
are acceptable. All the competitorshave equallygoodquality product in the market. Presently the
area of logistics distribution, customer service and satisfaction are the areas of prime concern in
orderto have extravalue additiontothe product. The product defects due to stitching, cutting and
transportation are now under increasing scrutiny.

7. Question.(iv) Is it advisable to have dedicated transport system to operate packaged materials
mainly for thecompany?
Answer:
Question.(v) What arrangements have to be made to ensure the service quality for customers?
Answer:Fromthe cost control pointof view,the amountof moneyheldupindistributionpipeline is
significant. The large varietyof garmentsnow meansmore raw materialsandcomponents are to be
heldinstock. Presently,the incomingsuppliesare arranged by the vendor firms and also, they may
have to be persuadedtoopt forjointlyapprovedtransporters. Due to product variations, the order
fulfillment and its processing are of considerable importance. The traditional information system
has become inadequate. There are over 500 retail outlets through which the finished products are
distributedwiththe helpof more than50 transporters. Lead-time variabilityiscreatingproblems of
buffer stocks with the distributors. The transit time
Case 5
(10 Marks)
Question.1. What are the company’s present logistical problems?
Answer:‘The company has four state-of-an-art manufacturing plants accredited with ISO
certification&backedby strong technical support from their foreign collaborators. The company is
also having a well established all India distribution network consisting of numbers of dealers. The
products flow from the manufacturing plants to the warehouses, managed & maintained by the
company,locatedat differentplacesacross the country. The dealers draw their requirements from
these warehousesforonwarddeliverytotheircustomers,The inventoryof the productsisunderthe
ownership of the company and is maintained as per

8. Case 6
(10 Marks)
Question.1. Identify the main logistical problems of the Company
Answer:Corporate managerstraditionallyhave viewed logisticsasa mandatorycost bucket.But top-
performing companies now recognize that mastering supply chain and logistics can be more than
that: It can be the source of competitive advantage.
This strategic shift opens up significant growth opportunities for logistics providers, with winners
usingdifferentpathsandbusinessmodels to foster growth. The major challenges for providers are
aligning corporate strategy with the right organizational model and matching that strategy to
targeted customer segments—by size, footprint, vertical category and market. Leading logistics
providers excel at understanding key customers’ needs
Question.2. To offer better customer service level and reduce the operating cost, how will you go
aboutredesigning the distribution network?
Answer:Indeed, network studies have been known to reduce distribution costs by as much as 25
percent.But cutting too much can compromise your ability to provide the highest levels of service
that yourcustomershave beenexpecting.A lotof effortandenergyneeds to go into understanding
howyour networkisperformingtodaybeforeyoucanstart pickingawayat where the opportunities
are.
To accomplish this, you start by asking the right

9. Case 7
(10 Marks)
Question.1. What is the main problem in this case? What are your suggestions to the company on
inventorymanagement?
Answer:M/s.Decorative LaminatesCorporation(DLC) isasupplier of decorative sheets for wooden
furniture makersindomesticaswell ascommercial markets.Inspite of competition inthisfieldtheir
sales volumes shown growth during last 2 to 3 years. The last year was recorded 15% more sales
comparedto previousyear.Eventhoughthe salesvolumeare increasingthe profit margin is getting
reduceddayby daydue to future competition.Inone of the monthlymanagementreview meetings
it wasobservedthatthe maincause for depleting profitability is the increasing procurement costs.
The report presented by the new Purchase Manger revealed that in order to obtain quantity
discountsfromthe suppliersthe company was purchasing inputs & other maintenance items much
more than their actual requirements. This has
Question.2. What type of logistical cost approach you would suggest to the company?
Answer:Systemsapproach – indicatesthatcompany’sobjectivescan be realized by recognizing the
mutual interdependence of the major functional areas of the firm, such as marketing, production,
finance, and logistics.
Implications of the systems approach:
 One logistics system does not fit all companies
 Stock-keepingunits(SKUs) orline itemsof inventory(stocksof goodsthatare maintainedfor
a variety of purposes)
 From logistics perspective – the proliferation of



10. Case 8
(10 Marks)
Question.1. What are the main problems in the logistical network of M/s. Compu-Tech?
Answer:M/s.Compu-Techisonthe reputedIndiancompaniesproducing various types of computer
printers. Their production plant is situated at Noida in northern India and the products are
distributedthroughdistributioncenterslocatedineveryregion.The companyintroducedLS popular
line of Desk Jet printers first time in India in 2005. Immediately on the launch of this products.
The solomore than one lacs units during that year. But the problems came with the boom in sales.
Q2. What solutions would you propose of overcome these problems?
Answer: To see lean perfected – study the NASCAR pit. In a matter of seconds, the pit crew has
changed tires, wiped down the windshield, filled up fuel, and given the driver a drink of water.
Everything is in the right place at the right time. If only every distribution center would run that
smoothly. What’s clear is that mastering inventory levels is central to the equation of eliminating
waste, but inventory management is becoming a vexing problem for some organizations –
compounded by multi-channel distribution, inadequate demand forecasting, and a lack of
communication among appropriate parties.
Taking a closer look at the experiences of
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
help.mbaassignments@gmail.com
or
call us at : 08263069601